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Sichuan Western Resources Holding Co (SHSE:600139) Financial Strength : 4 (As of Sep. 2022)


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What is Sichuan Western Resources Holding Co Financial Strength?

Sichuan Western Resources Holding Co has the Financial Strength Rank of 4.

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.

Sichuan Western Resources Holding Co did not have earnings to cover the interest expense. Sichuan Western Resources Holding Co's debt to revenue ratio for the quarter that ended in Sep. 2022 was 0.00. As of today, Sichuan Western Resources Holding Co's Altman Z-Score is 0.00.


Competitive Comparison of Sichuan Western Resources Holding Co's Financial Strength

For the Conglomerates subindustry, Sichuan Western Resources Holding 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.


Sichuan Western Resources Holding Co's Financial Strength Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Sichuan Western Resources Holding Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sichuan Western Resources Holding Co's Financial Strength falls into.



Sichuan Western Resources Holding 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:

Sichuan Western Resources Holding Co's Interest Expense for the months ended in Sep. 2022 was ¥-0.08 Mil. Its Operating Income for the months ended in Sep. 2022 was ¥-2.62 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2022 was ¥0.00 Mil.

Sichuan Western Resources Holding Co's Interest Coverage for the quarter that ended in Sep. 2022 is

Sichuan Western Resources Holding Co did not have earnings to cover the interest expense.

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

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

Sichuan Western Resources Holding Co's Debt to Revenue Ratio for the quarter that ended in Sep. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 0.092
=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.

Sichuan Western Resources Holding Co has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.


Sichuan Western Resources Holding Co  (SHSE:600139) 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.

Sichuan Western Resources Holding Co has the Financial Strength Rank of 4.


Sichuan Western Resources Holding Co Financial Strength Related Terms

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Sichuan Western Resources Holding Co (SHSE:600139) Business Description

Traded in Other Exchanges
N/A
Address
No. 168 Bisheng Road, Jinjiang Industrial Development Zone, Chengdu, Sichuan, CHN, 610063
Sichuan Western Resources Holding Co Ltd engages in the exploration, mining, and beneficiation of various metals in China. It primarily explores for copper, gold, and silver metals. The company also manufactures and sells new energy vehicles and electric drive systems. In addition, it manufactures CNG and city buses; and develops and manufactures lithium-ion battery materials and related batteries products. Further, the company provides finance leasing services.

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