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Sino Biopharmaceutical (Sino Biopharmaceutical) Financial Strength : 7 (As of Jun. 2023)


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What is Sino Biopharmaceutical Financial Strength?

Sino Biopharmaceutical has the Financial Strength Rank of 7.

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.

Sino Biopharmaceutical's Interest Coverage for the quarter that ended in Jun. 2023 was 19.19. Sino Biopharmaceutical's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.38. As of today, Sino Biopharmaceutical's Altman Z-Score is 2.45.


Competitive Comparison of Sino Biopharmaceutical's Financial Strength

For the Biotechnology subindustry, Sino Biopharmaceutical'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.


Sino Biopharmaceutical's Financial Strength Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Sino Biopharmaceutical's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sino Biopharmaceutical's Financial Strength falls into.



Sino Biopharmaceutical 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:

Sino Biopharmaceutical's Interest Expense for the months ended in Jun. 2023 was $-42 Mil. Its Operating Income for the months ended in Jun. 2023 was $815 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $144 Mil.

Sino Biopharmaceutical's Interest Coverage for the quarter that ended in Jun. 2023 is

Interest Coverage=-1*Operating Income (Q: Jun. 2023 )/Interest Expense (Q: Jun. 2023 )
=-1*815.055/-42.469
=19.19

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

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

Sino Biopharmaceutical's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1469.369 + 144.012) / 4266.494
=0.38

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.

Sino Biopharmaceutical has a Z-score of 2.45, indicating it is in Grey Zones. This implies that Sino Biopharmaceutical 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.


Sino Biopharmaceutical  (OTCPK:SBMFF) 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.

Sino Biopharmaceutical has the Financial Strength Rank of 7.


Sino Biopharmaceutical Financial Strength Related Terms

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Sino Biopharmaceutical (Sino Biopharmaceutical) Business Description

Traded in Other Exchanges
Address
1 Harbour Road, Unit 09, 41st Floor, Office Tower, Room 4109, Convention Plaza, Wanchai, Hong Kong, HKG
Sino Biopharmaceutical Co, or SBP, is one of the largest drugmakers in China, with CNY 27 billion revenue in 2021. Its four most important therapeutic areas are oncology, hepatitis, cardio-cerebral, and respiratory medicines. SBP's current portfolio is mostly generics, and some key drugs are facing severe price reductions. However, it also has a rich pipeline of early-to-market generics and biosimilars, especially in oncology and respiratory treatments.

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