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Jenkem Technology Co (SHSE:688356) Financial Strength : 10 (As of Sep. 2024)


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What is Jenkem Technology Co Financial Strength?

Jenkem Technology Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Jenkem Technology 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.

Jenkem Technology Co's Interest Coverage for the quarter that ended in Sep. 2024 was 127.26. Jenkem Technology Co's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.06. As of today, Jenkem Technology Co's Altman Z-Score is 31.98.


Competitive Comparison of Jenkem Technology Co's Financial Strength

For the Specialty Chemicals subindustry, Jenkem Technology 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.


Jenkem Technology Co's Financial Strength Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Jenkem Technology Co's Financial Strength distribution charts can be found below:

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



Jenkem Technology 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:

Jenkem Technology Co's Interest Expense for the months ended in Sep. 2024 was ¥-0.1 Mil. Its Operating Income for the months ended in Sep. 2024 was ¥7.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was ¥5.7 Mil.

Jenkem Technology Co's Interest Coverage for the quarter that ended in Sep. 2024 is

Interest Coverage=-1*Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*7.254/-0.057
=127.26

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Jenkem Technology Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Jenkem Technology Co's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(8.575 + 5.687) / 228.56
=0.06

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.

Jenkem Technology Co has a Z-score of 31.98, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 31.98 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.


Jenkem Technology Co  (SHSE:688356) 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.

Jenkem Technology Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Jenkem Technology Co Financial Strength Related Terms

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Jenkem Technology Co Business Description

Traded in Other Exchanges
N/A
Address
No. 66, Xixiaokou Road, Dongsheng area, 306, 308, 310, 311, 3rd Floor, C-1 Building, Dongsheng Science Park, Northern Territory, Zhongguancun, Haidian District, Beijing, CHN, 100192
Jenkem Technology Co Ltd is engaged in research and development, production and sales of medical polyethylene glycol and its active derivatives. The company's products include Branched polyethylene glycol derivatives; Linear polyethylene glycol derivatives; Double substituted polyethylene glycol derivatives with the same functional group; Heterofunctional double substituted polyethylene glycol derivatives; Multi-arm polyethylene glycol derivatives; Multi-arm heterofunctional double substituted polyethylene glycol derivatives; and Monodisperse Polyethylene Glycol Derivatives.
Executives
Director
Zhang Ru Jun Director
Chen Bin Director
Han Lei Director

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