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Motech Industries Co (ROCO:6244) Financial Strength : 5 (As of Dec. 2023)


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What is Motech Industries Co Financial Strength?

Motech Industries Co has the Financial Strength Rank of 5.

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.

Motech Industries Co's Interest Coverage for the quarter that ended in Dec. 2023 was 6.44. Motech Industries Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.74. As of today, Motech Industries Co's Altman Z-Score is 2.45.


Competitive Comparison of Motech Industries Co's Financial Strength

For the Solar subindustry, Motech Industries 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.


Motech Industries Co's Financial Strength Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Motech Industries Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Motech Industries Co's Financial Strength falls into.



Motech Industries 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:

Motech Industries Co's Interest Expense for the months ended in Dec. 2023 was NT$-12 Mil. Its Operating Income for the months ended in Dec. 2023 was NT$79 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was NT$2,170 Mil.

Motech Industries Co's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*79.497/-12.348
=6.44

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

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

Motech Industries Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(572.927 + 2170.384) / 3720.408
=0.74

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.

Motech Industries Co has a Z-score of 2.45, indicating it is in Grey Zones. This implies that Motech Industries Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.45 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Motech Industries Co  (ROCO:6244) 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.

Motech Industries Co has the Financial Strength Rank of 5.


Motech Industries Co Financial Strength Related Terms

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Motech Industries Co (ROCO:6244) Business Description

Traded in Other Exchanges
N/A
Address
Pei-Shen Road, 6th Floor, No. 248, Section 3, Shen-Keng District, New Taipei City, TWN, 222
Motech Industries Co Ltd is a company whose activities are the manufacturing, marketing, and sale of solar cells, solar modules, photovoltaic inverters, the marketing, design, and engineering of photovoltaic (PV) power systems, and solar power generation.

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