What is Mitsubishi Chemical Group Financial Strength?
Mitsubishi Chemical Group has the Financial Strength Rank of 5.
Warning Sign:
Mitsubishi Chemical Group Corp 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.
Mitsubishi Chemical Group's Interest Coverage for the quarter that ended in Dec. 2023 was 4.63.
Mitsubishi Chemical Group's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.52.
As of today, Mitsubishi Chemical Group's Altman Z-Score is 1.58.
Competitive Comparison of Mitsubishi Chemical Group's Financial Strength
For the Specialty Chemicals subindustry, Mitsubishi Chemical 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.
Mitsubishi Chemical Group's Financial Strength Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Mitsubishi Chemical Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where Mitsubishi Chemical Group's Financial Strength falls into.
Mitsubishi Chemical 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.
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:
Mitsubishi Chemical Group's Interest Expense for the
months ended in Dec. 2023 was $-107 Mil. Its Operating Income for the
months ended in Dec. 2023 was $496 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $11,313 Mil.
Mitsubishi Chemical Group's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Mitsubishi Chemical Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
Mitsubishi Chemical Group has a Z-score of 1.58, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.58 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.
Mitsubishi Chemical Group (Mitsubishi Chemical Group) Business Description
Traded in Other Exchanges
Address
1-1 Marunouchi 1-chome, Chiyoda-ku, Tokyo, JPN, 100-8251
Mitsubishi Chemical Group Corp is a holdings company, which manufactures and sells chemicals, plastics, and pharmaceuticals. It organizes itself into three segments based on product. The Industrial Materials segment, which generates the majority of revenue, sells chemicals and polymers, including industrial gases, petrochemicals, thermoplastics, polyethylene, and polypropylene. The Performance Products segment sells electronics and designed materials, including LED lighting and equipment, specialty chemicals, polyester and industrial films, and fibers. The Health Care segment sells pharmaceuticals to treat autoimmune diseases, diabetes and kidney diseases, central nervous system treatments, and vaccines. The majority of revenue comes from Japan.
Mitsubishi Chemical Group (Mitsubishi Chemical Group) Headlines
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