GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Chongqing Sifang New Materials Co Ltd (SHSE:605122) » Definitions » Financial Strength

Chongqing Sifang New Materials Co (SHSE:605122) Financial Strength : 4 (As of Mar. 2025)


View and export this data going back to 2021. Start your Free Trial

What is Chongqing Sifang New Materials Co Financial Strength?

Chongqing Sifang New Materials 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.

Chongqing Sifang New Materials Co did not have earnings to cover the interest expense. Chongqing Sifang New Materials Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.63. As of today, Chongqing Sifang New Materials Co's Altman Z-Score is 1.41.


Competitive Comparison of Chongqing Sifang New Materials Co's Financial Strength

For the Building Materials subindustry, Chongqing Sifang New Materials 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.


Chongqing Sifang New Materials Co's Financial Strength Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Chongqing Sifang New Materials Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Chongqing Sifang New Materials Co's Financial Strength falls into.


;
;

Chongqing Sifang New Materials 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:

Chongqing Sifang New Materials Co's Interest Expense for the months ended in Mar. 2025 was ¥-8 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥-12 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥117 Mil.

Chongqing Sifang New Materials Co's Interest Coverage for the quarter that ended in Mar. 2025 is

Chongqing Sifang New Materials 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.

Chongqing Sifang New Materials 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
=(504.321 + 117.112) / 990.044
=0.63

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.

Chongqing Sifang New Materials Co has a Z-score of 1.41, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.41 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Chongqing Sifang New Materials Co  (SHSE:605122) 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.

Chongqing Sifang New Materials Co has the Financial Strength Rank of 4.


Chongqing Sifang New Materials Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Chongqing Sifang New Materials Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Chongqing Sifang New Materials Co Business Description

Traded in Other Exchanges
N/A
Address
No. 306, Nanhu Road, Nanpeng Street, Banan District, Chongqing, CHN, 401347
Chongqing Sifang New Materials Co Ltd is a construction material manufacturer that focuses on the research, development, production and sales of commercial concrete and also produces aggregates for construction. The company's products are widely used in infrastructure construction such as roads, bridges, tunnels, water conservancy, and industrial and civil real estate construction.
Executives
Peng Zhi Yong Supervisors
Yang Xiang Supervisors
Yang Yong Director
Li De Zhi Directors, senior managers
Jiang Hong Bo Directors, senior managers
Yang Yong Hong Director
Zhang Wei senior management
Xie Tao Directors, senior managers
Li Lu Jing Director
Yu Jian Zhong Directors, senior managers

Chongqing Sifang New Materials Co Headlines

No Headlines