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Shandong Huifa Foodstuff Co (SHSE:603536) Financial Strength : 4 (As of Mar. 2025)


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What is Shandong Huifa Foodstuff Co Financial Strength?

Shandong Huifa Foodstuff 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.

Shandong Huifa Foodstuff Co did not have earnings to cover the interest expense. Shandong Huifa Foodstuff Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.41. As of today, Shandong Huifa Foodstuff Co's Altman Z-Score is 2.58.


Competitive Comparison of Shandong Huifa Foodstuff Co's Financial Strength

For the Packaged Foods subindustry, Shandong Huifa Foodstuff 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.


Shandong Huifa Foodstuff Co's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Shandong Huifa Foodstuff Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Shandong Huifa Foodstuff Co's Financial Strength falls into.


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Shandong Huifa Foodstuff 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:

Shandong Huifa Foodstuff Co's Interest Expense for the months ended in Mar. 2025 was ¥-6 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥-13 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥5 Mil.

Shandong Huifa Foodstuff Co's Interest Coverage for the quarter that ended in Mar. 2025 is

Shandong Huifa Foodstuff 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.

Shandong Huifa Foodstuff 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
=(501.116 + 4.938) / 1238.368
=0.41

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.

Shandong Huifa Foodstuff Co has a Z-score of 2.58, indicating it is in Grey Zones. This implies that Shandong Huifa Foodstuff 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 2.58 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.


Shandong Huifa Foodstuff Co  (SHSE:603536) 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.

Shandong Huifa Foodstuff Co has the Financial Strength Rank of 4.


Shandong Huifa Foodstuff Co Financial Strength Related Terms

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Shandong Huifa Foodstuff Co Business Description

Traded in Other Exchanges
N/A
Address
No. 60, Lishan Road, Shandong Province, Zhucheng, CHN, 262200
Shandong Huifa Foodstuff Co Ltd is a China-based company engages in the research and development, production, and sales of pre-prepared food products cover various cuisines including local snacks, functional dishes, snacks, pastries, conditioning, western food, hot pot, etc. The food products offered by the company include onion rings, lotus root with meat, surimi, and cheese buns, among others. Its products and services are offered through brands such as Hui Fa, Ze Zhong, Hui Fa Fresh Kitchen, and Aisha Yippin, and service brands such as Runong Supply Chain, Hui Fa Kitchen, Hui Fa Cloud Kitchen, Hui Fa Mei Chu, Yilan Xiaodian, and Miloko.
Executives
Zang Fang Yun senior management
Zhang Qing Yu senior management
Wei Xue Jun senior management
Li Yu Jun senior management
Hui Min senior management
Liu Hai Wei senior management
Dong Xue senior management
Jie Pei Jin senior management
Wang Rui Rong senior management
Song Zhang Wei Director
Hui Zeng Yu Directors, senior managers
Meng Gao Dong senior management

Shandong Huifa Foodstuff Co Headlines

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