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Guangxi Wuzhou Communications Co (SHSE:600368) Financial Strength : 5 (As of Mar. 2024)


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What is Guangxi Wuzhou Communications Co Financial Strength?

Guangxi Wuzhou Communications 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.

Guangxi Wuzhou Communications Co's Interest Coverage for the quarter that ended in Mar. 2024 was 7.63. Guangxi Wuzhou Communications Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.28. As of today, Guangxi Wuzhou Communications Co's Altman Z-Score is 2.35.


Competitive Comparison of Guangxi Wuzhou Communications Co's Financial Strength

For the Railroads subindustry, Guangxi Wuzhou Communications 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.


Guangxi Wuzhou Communications Co's Financial Strength Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Guangxi Wuzhou Communications Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Guangxi Wuzhou Communications Co's Financial Strength falls into.



Guangxi Wuzhou Communications 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:

Guangxi Wuzhou Communications Co's Interest Expense for the months ended in Mar. 2024 was ¥-30 Mil. Its Operating Income for the months ended in Mar. 2024 was ¥232 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ¥1,511 Mil.

Guangxi Wuzhou Communications Co's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*231.764/-30.377
=7.63

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

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

Guangxi Wuzhou Communications Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(569.784 + 1511.4) / 1620.376
=1.28

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.

Guangxi Wuzhou Communications Co has a Z-score of 2.35, indicating it is in Grey Zones. This implies that Guangxi Wuzhou Communications 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 2.35 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.


Guangxi Wuzhou Communications Co  (SHSE:600368) 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.

Guangxi Wuzhou Communications Co has the Financial Strength Rank of 5.


Guangxi Wuzhou Communications Co Financial Strength Related Terms

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Guangxi Wuzhou Communications Co (SHSE:600368) Business Description

Traded in Other Exchanges
N/A
Address
No. 115-1 Minzu Avenue, Modern International Tower, 27F, Nanning, Guangxi, CHN, 530028
Website
Guangxi Wuzhou Communications Co Ltd is mainly engaged in real estate development. It invests in and operates highways, toll roads, bridges, stations, ports, docks and other transportation infrastructure.
Executives
Han Gang senior management
Liang Jun Director
Zhang Yi senior management
Xu De Director
Han Gang Director
Wang Quan Director
Huang Jin Mu Supervisors
Huang Ke Zhu Director
Deng Bei Ling Supervisors
Kong Qing Feng Supervisors

Guangxi Wuzhou Communications Co (SHSE:600368) Headlines

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