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Aurora Optoelectronics Co (SHSE:600666) Financial Strength : 6 (As of Mar. 2025)


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What is Aurora Optoelectronics Co Financial Strength?

Aurora Optoelectronics Co has the Financial Strength Rank of 6.

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.

Aurora Optoelectronics Co did not have earnings to cover the interest expense. Aurora Optoelectronics Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.09. As of today, Aurora Optoelectronics Co's Altman Z-Score is 2.48.


Competitive Comparison of Aurora Optoelectronics Co's Financial Strength

For the Drug Manufacturers - General subindustry, Aurora Optoelectronics 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.


Aurora Optoelectronics Co's Financial Strength Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Aurora Optoelectronics Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Aurora Optoelectronics Co's Financial Strength falls into.


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Aurora Optoelectronics 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:

Aurora Optoelectronics Co's Interest Expense for the months ended in Mar. 2025 was ¥-0.3 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥-18.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥8.3 Mil.

Aurora Optoelectronics Co's Interest Coverage for the quarter that ended in Mar. 2025 is

Aurora Optoelectronics 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.

Aurora Optoelectronics 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
=(25.58 + 8.305) / 393.536
=0.09

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.

Aurora Optoelectronics Co has a Z-score of 2.48, indicating it is in Grey Zones. This implies that Aurora Optoelectronics 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 2.48 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.


Aurora Optoelectronics Co  (SHSE:600666) 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.

Aurora Optoelectronics Co has the Financial Strength Rank of 6.


Aurora Optoelectronics Co Financial Strength Related Terms

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Aurora Optoelectronics Co Business Description

Traded in Other Exchanges
N/A
Address
No. 5 Haibin Road, Binxi Economic and Technological Development Zone, Heilongjiang Province, Harbin, CHN, 150431
Aurora Optoelectronics Co Ltd is engaged in the manufacturing, processing, and sales of sapphire crystal materials and equipment. Its produces sapphire, 3D glass hot bending machine, Hard and brittle material processing and polishing machine, flat grinding machine, edge grinding machine, milling and carving machine.
Executives
Zhu San Gao Directors, senior managers
Jiang Yang Directors, senior managers
Zuo Hong Bo Director
Yang Xin Hong Director
Yuan Li Xian Supervisors
Chu Shu Xia Director
Qin Zhi Yong Director
Zhang Yi Ping Director

Aurora Optoelectronics Co Headlines

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