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Chuang's China Investments (STU:CUG) Financial Strength : 5 (As of Sep. 2023)


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What is Chuang's China Investments Financial Strength?

Chuang's China Investments 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.

Chuang's China Investments did not have earnings to cover the interest expense. Chuang's China Investments's debt to revenue ratio for the quarter that ended in Sep. 2023 was 5.50. As of today, Chuang's China Investments's Altman Z-Score is 0.83.


Competitive Comparison of Chuang's China Investments's Financial Strength

For the Real Estate - Development subindustry, Chuang's China Investments'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.


Chuang's China Investments's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Chuang's China Investments's Financial Strength distribution charts can be found below:

* The bar in red indicates where Chuang's China Investments's Financial Strength falls into.



Chuang's China Investments 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:

Chuang's China Investments's Interest Expense for the months ended in Sep. 2023 was €-0.48 Mil. Its Operating Income for the months ended in Sep. 2023 was €-11.60 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was €19.52 Mil.

Chuang's China Investments's Interest Coverage for the quarter that ended in Sep. 2023 is

Chuang's China Investments 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.

Chuang's China Investments's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(73.345 + 19.523) / 16.9
=5.50

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.

Chuang's China Investments has a Z-score of 0.83, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.83 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.


Chuang's China Investments  (STU:CUG) 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.

Chuang's China Investments has the Financial Strength Rank of 5.


Chuang's China Investments Financial Strength Related Terms

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Chuang's China Investments (STU:CUG) Business Description

Traded in Other Exchanges
Address
18 Chater Road, Central, 25th Floor, Alexandra House, Hong Kong, HKG
Chuang's China Investments Ltd is a Hong Kong-based investment holding.The principal activities of the Company are property development, investment and trading, hotel operation and management, development and operation of cemetery, sales of goods and merchandises (including art pieces), and securities investment and trading. The company's operating segment include Property development, investment and trading; Cemetery; Sales of goods and merchandises; Securities investment and trading and Others and corporate. It generates maximum revenue from the Property development, investment and trading segment. Geographically, it derives a majority of revenue from Hong Kong and also has a presence in PRC, United Kingdom, and Malaysia.

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