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ShenZhen Longtu Photomask Co (SHSE:688721) Financial Strength : 10 (As of Mar. 2025)


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What is ShenZhen Longtu Photomask Co Financial Strength?

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

Good Sign:

ShenZhen Longtu Photomask 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.

ShenZhen Longtu Photomask Co's Interest Coverage for the quarter that ended in Mar. 2025 was 28.37. ShenZhen Longtu Photomask Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.02. As of today, ShenZhen Longtu Photomask Co's Altman Z-Score is 48.04.


Competitive Comparison of ShenZhen Longtu Photomask Co's Financial Strength

For the Semiconductor Equipment & Materials subindustry, ShenZhen Longtu Photomask 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.


ShenZhen Longtu Photomask Co's Financial Strength Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ShenZhen Longtu Photomask Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where ShenZhen Longtu Photomask Co's Financial Strength falls into.


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ShenZhen Longtu Photomask 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:

ShenZhen Longtu Photomask Co's Interest Expense for the months ended in Mar. 2025 was ¥-0.7 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥18.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥3.0 Mil.

ShenZhen Longtu Photomask 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*18.812/-0.663
=28.37

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. ShenZhen Longtu Photomask 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.

ShenZhen Longtu Photomask 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
=(1.545 + 2.972) / 217.468
=0.02

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.

ShenZhen Longtu Photomask Co has a Z-score of 48.04, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 48.04 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.


ShenZhen Longtu Photomask Co  (SHSE:688721) 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.

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


ShenZhen Longtu Photomask Co Financial Strength Related Terms

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ShenZhen Longtu Photomask Co Business Description

Traded in Other Exchanges
N/A
Address
North of Xinyu Road, Xinqiao Street, Room 101, Building 4, St. George Technology Industrial Park, Xiangshan Community, Bao'an District, Guangdong, Shenzhen, CHN, 518125
ShenZhen Longtu Photomask Co Ltd is engaged in research and development, production and sales of semiconductor masks. Its products include Quartz Mask and Soda Mask.

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