Yufengchang Holdings has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Yufengchang Holdings Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Yufengchang Holdings did not have earnings to cover the interest expense.
Yufengchang Holdings's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.45.
As of today, Yufengchang Holdings's Altman Z-Score is 1.42.
Competitive Comparison of Yufengchang Holdings's Financial Strength
For the Oil & Gas Refining & Marketing subindustry, Yufengchang Holdings's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Yufengchang Holdings's Financial Strength Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Yufengchang Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where Yufengchang Holdings's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Yufengchang Holdings has a Z-score of 1.42, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.42 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Yufengchang Holdings has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Yufengchang Holdings Financial Strength Related Terms
Thank you for viewing the detailed overview of Yufengchang Holdings's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Yufengchang Holdings Ltd Formerly Sun Kong Holdings Ltd is an investment holding company engaged in the sales of diesel oil, steam coal, and related products in Hong Kong. The company's sale services include sourcing diesel oil through oil trading companies, dispatching its fleet of diesel tank wagons to collect diesel oil from oil depots designated by its suppliers, and delivering diesel oil to destinations designated by the company's customers. It derives revenue from the sales of diesel oil, diesel exhaust fluid. All of the group's revenue is derived from Hong Kong.
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