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Nantong Xingqiu Graphite Co (SHSE:688633) Financial Strength : 5 (As of Mar. 2024)


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What is Nantong Xingqiu Graphite Co Financial Strength?

Nantong Xingqiu Graphite Co has the Financial Strength Rank of 5.

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.

Nantong Xingqiu Graphite Co's Interest Coverage for the quarter that ended in Mar. 2024 was 4.17. Nantong Xingqiu Graphite Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.31. As of today, Nantong Xingqiu Graphite Co's Altman Z-Score is 2.73.


Competitive Comparison of Nantong Xingqiu Graphite Co's Financial Strength

For the Specialty Industrial Machinery subindustry, Nantong Xingqiu Graphite 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.


Nantong Xingqiu Graphite Co's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Nantong Xingqiu Graphite Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Nantong Xingqiu Graphite Co's Financial Strength falls into.



Nantong Xingqiu Graphite 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:

Nantong Xingqiu Graphite Co's Interest Expense for the months ended in Mar. 2024 was ¥-6.7 Mil. Its Operating Income for the months ended in Mar. 2024 was ¥27.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ¥593.6 Mil.

Nantong Xingqiu Graphite Co's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*27.918/-6.702
=4.17

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

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

Nantong Xingqiu Graphite Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(24.039 + 593.58) / 471.752
=1.31

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.

Nantong Xingqiu Graphite Co has a Z-score of 2.73, indicating it is in Grey Zones. This implies that Nantong Xingqiu Graphite 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 2.73 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.


Nantong Xingqiu Graphite Co  (SHSE:688633) 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.

Nantong Xingqiu Graphite Co has the Financial Strength Rank of 5.


Nantong Xingqiu Graphite Co Financial Strength Related Terms

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Nantong Xingqiu Graphite Co (SHSE:688633) Business Description

Traded in Other Exchanges
N/A
Address
No. 8, Huaxing Road, Jiuhua Town, Rugao City, Jiangsu Province, Nantong, CHN, 226541
Nantong Xingqiu Graphite Co Ltd is engaged in the research and development, production, sales and maintenance services of graphite equipment. It offers graphite heat exchanger, tower, absorber, storage tank and others.
Executives
Xia Bin Director
Sun Jian Jun Directors, senior managers
Yang Zhi Cheng Directors, senior managers
Qian Shu Juan Director
Zhang Yi Director
Zhu Li Directors, senior managers
Wang Jun Fei Core technical personnel

Nantong Xingqiu Graphite Co (SHSE:688633) Headlines

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