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Atlantic China Welding Consumables (SHSE:600558) Financial Strength : 9 (As of Mar. 2025)


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What is Atlantic China Welding Consumables Financial Strength?

Atlantic China Welding Consumables has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Atlantic China Welding Consumables Inc shows strong financial strength.

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.

Atlantic China Welding Consumables's Interest Coverage for the quarter that ended in Mar. 2025 was 56.88. Atlantic China Welding Consumables's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.03. As of today, Atlantic China Welding Consumables's Altman Z-Score is 5.80.


Competitive Comparison of Atlantic China Welding Consumables's Financial Strength

For the Specialty Industrial Machinery subindustry, Atlantic China Welding Consumables'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.


Atlantic China Welding Consumables's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Atlantic China Welding Consumables's Financial Strength distribution charts can be found below:

* The bar in red indicates where Atlantic China Welding Consumables's Financial Strength falls into.


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Atlantic China Welding Consumables 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:

Atlantic China Welding Consumables's Interest Expense for the months ended in Mar. 2025 was ¥-1 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥58 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥15 Mil.

Atlantic China Welding Consumables'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*57.507/-1.011
=56.88

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

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

Atlantic China Welding Consumables'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
=(88.623 + 15.303) / 3690.944
=0.03

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.

Atlantic China Welding Consumables has a Z-score of 5.80, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.8 is strong.

* 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.


Atlantic China Welding Consumables  (SHSE:600558) 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.

Atlantic China Welding Consumables has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Atlantic China Welding Consumables Financial Strength Related Terms

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Atlantic China Welding Consumables Business Description

Traded in Other Exchanges
N/A
Address
No. 1 Danyang Street, Ziliujing District, Sichuan Province, Zigong, CHN
Atlantic China Welding Consumables Inc is a welding consumable manufactory in China. The company's product consists of welding rods (carbon steel welding rods, low alloy steel welding rods, stainless steel welding rods, cladding welding rods, cast iron welding rods, nickel and nickel alloy welding rods, copper and copper alloy welding rods), welding wires (solid welding wires for gas shielded welding of MAG, MIG and TIG, flux-cored welding wires, non-ferrous metal welding wires, and submerged arc welding wires), and fluxes (various smelting and sintering fluxes for submerged arc welding and electro slag welding) with more than 700 varieties in three series.
Executives
Yang Fang Supervisors
Lan Kun Director

Atlantic China Welding Consumables Headlines

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