GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Mabuchi Motor Co Ltd (OTCPK:MBUMY) » Definitions » Financial Strength

Mabuchi Motor Co (Mabuchi Motor Co) Financial Strength : 10 (As of Mar. 2024)


View and export this data going back to 2014. Start your Free Trial

What is Mabuchi Motor Co Financial Strength?

Mabuchi Motor Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Mabuchi Motor Co Ltd shows strong financial strength.

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.

Mabuchi Motor Co's Interest Coverage for the quarter that ended in Mar. 2024 was 162.41. Mabuchi Motor Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.00. As of today, Mabuchi Motor Co's Altman Z-Score is 8.72.


Competitive Comparison of Mabuchi Motor Co's Financial Strength

For the Auto Parts subindustry, Mabuchi Motor Co'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.


Mabuchi Motor Co's Financial Strength Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Mabuchi Motor Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Mabuchi Motor Co's Financial Strength falls into.



Mabuchi Motor Co 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:

Mabuchi Motor Co's Interest Expense for the months ended in Mar. 2024 was $-0 Mil. Its Operating Income for the months ended in Mar. 2024 was $26 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $6 Mil.

Mabuchi Motor Co's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*25.985/-0.16
=162.41

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Mabuchi Motor Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Mabuchi Motor Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 5.54) / 1202.948
=0.00

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.

Mabuchi Motor Co has a Z-score of 8.72, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 8.72 is strong.

* 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.


Mabuchi Motor Co  (OTCPK:MBUMY) 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.

Mabuchi Motor Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Mabuchi Motor Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Mabuchi Motor Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Mabuchi Motor Co (Mabuchi Motor Co) Business Description

Traded in Other Exchanges
Address
430 Matsuhidai Matsudo City, Chiba, JPN, 270-2280
Mabuchi Motor Co Ltd is a manufacturer of small electrical motors. Its motors are used in automotive, consumer, and industrial products, including home appliances, power tools, precision and office equipment, audio and video equipment, and toys. Mabuchi Motor generates the majority of its revenue selling door lock actuators and power window lifters in its automotive segment. In its consumer and industrial segment, inject printer related motors are the largest revenue driver for the company. The major end markets are China and Hong Kong, Asia-Pacific, and Europe.

Mabuchi Motor Co (Mabuchi Motor Co) Headlines

From GuruFocus

Matthews Japan Fund Comments on Mabuchi Motor

By Vera Yuan Vera Yuan 07-24-2014

Matthews Japan Fund 3rd Quarter Commentary

By Holly LaFon Holly LaFon 11-03-2016

The Most Recent Changes to T. Rowe Price Japan's Portfolio

By Sheila Dang Sheila Dang 10-17-2014