What is China Youran Dairy Group Financial Strength?
China Youran Dairy Group 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:
China Youran Dairy Group 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 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.
China Youran Dairy Group's Interest Coverage for the quarter that ended in Jun. 2024 was 0.19.
China Youran Dairy Group's debt to revenue ratio for the quarter that ended in Jun. 2024 was 1.31.
As of today, China Youran Dairy Group's Altman Z-Score is 0.31.
Competitive Comparison of China Youran Dairy Group's Financial Strength
For the Farm Products subindustry, China Youran Dairy Group'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.
China Youran Dairy Group's Financial Strength Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, China Youran Dairy Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where China Youran Dairy Group's Financial Strength falls into.
China Youran Dairy Group Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
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:
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. China Youran Dairy Group Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
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.
China Youran Dairy Group has a Z-score of 0.31, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.31 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.
China Youran Dairy Group (HKSE:09858) Financial Strength Explanation
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
China Youran Dairy Group 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.
China Youran Dairy Group Financial Strength Related Terms
Thank you for viewing the detailed overview of China Youran Dairy Group's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
China Youran Dairy Group Ltd is primarily engaged in the production and sale of raw milk, and the trading, production, and sale of dairy farming products in China. The group operates through two business segments, namely, Raw Milk and Comprehensive Ruminant Farming Solutions. It provides premium raw milk to large-scale dairy manufacturers and offers ruminant farming products and services to dairy farms.
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