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Dongfeng Electronic Technology Co (SHSE:600081) Financial Strength : 7 (As of Mar. 2025)


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What is Dongfeng Electronic Technology Co Financial Strength?

Dongfeng Electronic Technology Co has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Dongfeng Electronic Technology Co's Interest Coverage for the quarter that ended in Mar. 2025 was 6.55. Dongfeng Electronic Technology Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.08. As of today, Dongfeng Electronic Technology Co's Altman Z-Score is 2.43.


Competitive Comparison of Dongfeng Electronic Technology Co's Financial Strength

For the Auto Parts subindustry, Dongfeng Electronic Technology 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.


Dongfeng Electronic Technology Co's Financial Strength Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where Dongfeng Electronic Technology Co's Financial Strength falls into.


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Dongfeng Electronic Technology 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:

Dongfeng Electronic Technology Co's Interest Expense for the months ended in Mar. 2025 was ¥-4 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥29 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥81 Mil.

Dongfeng Electronic Technology Co's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*28.642/-4.372
=6.55

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

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

Dongfeng Electronic Technology Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(400.99 + 81.476) / 6081.212
=0.08

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.

Dongfeng Electronic Technology Co has a Z-score of 2.43, indicating it is in Grey Zones. This implies that Dongfeng Electronic Technology 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 2.43 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.


Dongfeng Electronic Technology Co  (SHSE:600081) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Dongfeng Electronic Technology Co has the Financial Strength Rank of 7.


Dongfeng Electronic Technology Co Financial Strength Related Terms

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Dongfeng Electronic Technology Co Business Description

Traded in Other Exchanges
N/A
Address
No. 2000 Zhongshan North Road, Zhongqi Building, 22F, Shanghai, CHN, 200063
Dongfeng Electronic Technology Co Ltd researches develops, procures, manufactures, and sells automotive parts in China. It offers automotive instrumentation systems, trim systems, brake systems, fuel supply systems, GPS vehicle navigation system components, and body control systems. The company also offers automotive electronics system products; sensors and other component products, plastic parts, and non-ferrous metal die castings for automobiles and motorcycles.
Executives
Yang Qing Jie Supervisors

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