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Bestore Co (SHSE:603719) Financial Strength : 7 (As of Jun. 2024)


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What is Bestore Co Financial Strength?

Bestore Co has the Financial Strength Rank of 7.

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.

Bestore Co did not have earnings to cover the interest expense. Bestore Co's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.08. As of today, Bestore Co's Altman Z-Score is 4.22.


Competitive Comparison of Bestore Co's Financial Strength

For the Packaged Foods subindustry, Bestore 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.


Bestore Co's Financial Strength Distribution in the Consumer Packaged Goods Industry

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

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



Bestore 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:

Bestore Co's Interest Expense for the months ended in Jun. 2024 was ¥-6 Mil. Its Operating Income for the months ended in Jun. 2024 was ¥-33 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was ¥237 Mil.

Bestore Co's Interest Coverage for the quarter that ended in Jun. 2024 is

Bestore 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.

Bestore Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(227.789 + 237.403) / 5739.464
=0.08

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.

Bestore Co has a Z-score of 4.22, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.22 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.


Bestore Co  (SHSE:603719) 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.

Bestore Co has the Financial Strength Rank of 7.


Bestore Co Financial Strength Related Terms

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Bestore Co Business Description

Traded in Other Exchanges
N/A
Address
No. 8 Zaomaling Innovation Avenue, Dongxihu District, Hubei Province, Wuhan, CHN, 430000
Bestore Co Ltd is engaged in the procurement, sales and operation of snack foods. The company's products include bulk food including refrigerated frozen food, bulk cooked food; pre-packaged food including refrigerated frozen food; special food such as health products, infant formula milk powder, other infant formula; vegetables; dried fruits; flowers; daily necessities; agricultural products; agricultural and sideline products; hot foods including semi-finished foods; pastry foods including decorating foods; production and sale of homemade beverages including homemade fresh milk beverages; cold foods; raw foods including meat products, raw seafood foods; food packaging and processing; storage services, and venue rental.

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