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Railway Construction JSC (HSTC:RCC) Financial Strength : 3 (As of . 20)


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What is Railway Construction JSC Financial Strength?

Railway Construction JSC 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:

Railway Construction Corp JSC 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.

Railway Construction JSC did not have earnings to cover the interest expense. As of today, Railway Construction JSC's Altman Z-Score is 0.00.


Competitive Comparison of Railway Construction JSC's Financial Strength

For the Engineering & Construction subindustry, Railway Construction JSC'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.


Railway Construction JSC's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Railway Construction JSC's Financial Strength distribution charts can be found below:

* The bar in red indicates where Railway Construction JSC's Financial Strength falls into.



Railway Construction JSC 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.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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:

Railway Construction JSC's Interest Expense for the months ended in . 20 was ₫0.00 Mil. Its Operating Income for the months ended in . 20 was ₫0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in . 20 was ₫0.00 Mil.

Railway Construction JSC's Interest Coverage for the quarter that ended in . 20 is

Railway Construction JSC had no long-term debt (1).

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Railway Construction JSC's Debt to Revenue Ratio for the quarter that ended in . 20 is

Debt to Revenue Ratio=Total Debt (Q: . 20 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=( + ) / 0
=N/A

3. Altman Z-Score.

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.

Railway Construction JSC has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


Railway Construction JSC  (HSTC:RCC) 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.

Railway Construction JSC 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.


Railway Construction JSC Financial Strength Related Terms

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Railway Construction JSC (HSTC:RCC) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Building 33, Lang Ha Street, Thanh Cong Ward, Ba Dinh District, Hanoi, VNM
Railway Construction Corp JSC is engaged in the construction of railway, road, and energy transport infrastructure; extractive; manufacturing metal structures, industrial products for the railway industry, construction works, traffic; real estate business, and accommodation services.

Railway Construction JSC (HSTC:RCC) Headlines

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