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Shuhua Sports Co (SHSE:605299) Financial Strength : 8 (As of Mar. 2025)


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What is Shuhua Sports Co Financial Strength?

Shuhua Sports Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Shuhua Sports Co Ltd 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.

Shuhua Sports Co's Interest Coverage for the quarter that ended in Mar. 2025 was 9.77. Shuhua Sports Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.21. As of today, Shuhua Sports Co's Altman Z-Score is 5.10.


Competitive Comparison of Shuhua Sports Co's Financial Strength

For the Leisure subindustry, Shuhua Sports 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.


Shuhua Sports Co's Financial Strength Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Shuhua Sports Co's Financial Strength distribution charts can be found below:

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


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Shuhua Sports 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:

Shuhua Sports Co's Interest Expense for the months ended in Mar. 2025 was ¥-1 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥11 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥28 Mil.

Shuhua Sports Co'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*10.571/-1.082
=9.77

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

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

Shuhua Sports 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
=(196.836 + 28.312) / 1084.632
=0.21

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.

Shuhua Sports Co has a Z-score of 5.10, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.1 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.


Shuhua Sports Co  (SHSE:605299) 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.

Shuhua Sports Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Shuhua Sports Co Financial Strength Related Terms

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Shuhua Sports Co Business Description

Traded in Other Exchanges
N/A
Address
Shichun Industrial Zone, Chidian, Fujian Province, Jinjiang, CHN, 362212
Shuhua Sports Co Ltd is a provider of fitness equipment and health solutions in China. It has four production bases and two operation centers in China. The company offers home fitness, commercial fitness, physical training, campus sports and various others. Its global business covers more than 60 countries and regions, including Europe and the United States, the Middle East and Southeast Asia.
Executives
Wu Duan Xin Directors, senior managers
Fu Jian Mu Directors, senior managers
Li Xiao Feng senior management
Huang Shi Xiong Directors, senior managers
Zhang Ru Shou senior management

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