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Guizhou Chitianhua Co (SHSE:600227) Financial Strength : 4 (As of Mar. 2025)


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What is Guizhou Chitianhua Co Financial Strength?

Guizhou Chitianhua Co has the Financial Strength Rank of 4.

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.

Guizhou Chitianhua Co did not have earnings to cover the interest expense. Guizhou Chitianhua Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.48. As of today, Guizhou Chitianhua Co's Altman Z-Score is 0.69.


Competitive Comparison of Guizhou Chitianhua Co's Financial Strength

For the Agricultural Inputs subindustry, Guizhou Chitianhua 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.


Guizhou Chitianhua Co's Financial Strength Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Guizhou Chitianhua Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Guizhou Chitianhua Co's Financial Strength falls into.


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Guizhou Chitianhua 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:

Guizhou Chitianhua Co's Interest Expense for the months ended in Mar. 2025 was ¥-11 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥-19 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥483 Mil.

Guizhou Chitianhua Co's Interest Coverage for the quarter that ended in Mar. 2025 is

Guizhou Chitianhua 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.

Guizhou Chitianhua 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
=(599.879 + 483.213) / 2258.252
=0.48

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.

Guizhou Chitianhua Co has a Z-score of 0.69, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.69 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.


Guizhou Chitianhua Co  (SHSE:600227) 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.

Guizhou Chitianhua Co has the Financial Strength Rank of 4.


Guizhou Chitianhua Co Financial Strength Related Terms

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Guizhou Chitianhua Co Business Description

Traded in Other Exchanges
N/A
Address
No. 310 Xintian Avenue, Wudang District, Guizhou Province, Guiyang, CHN, 564707
Guizhou Chitianhua Co Ltd, formerly Guizhou Salvage Pharmaceutical Co Ltd primarily produces and sells urea in China. It offers nitrogenous fertilizer, phosphate fertilizer, compound fertilizer, synthetic ammonia, sulfur, and other chemical products and raw materials; fine chemical products; industrial hydrogen; and packing bags and plastic sheets.
Executives
Wu Hong Yan Directors, senior managers
Lin Yang senior management
Chen Hong Lin senior management
Ye Yong senior management
Xian Zheng Hong senior management
Gao Min Hong Directors, senior managers
Che Bi Lu senior management
Sun De Sheng Director

Guizhou Chitianhua Co Headlines

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