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Guangxi Rural Investment Sugar Industry Group Co (SZSE:000911) Financial Strength : 2 (As of Jun. 2024)


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What is Guangxi Rural Investment Sugar Industry Group Co Financial Strength?

Guangxi Rural Investment Sugar Industry Group Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Guangxi Rural Investment Sugar Industry Group Co Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

Guangxi Rural Investment Sugar Industry Group Co's Interest Coverage for the quarter that ended in Jun. 2024 was 1.49. Guangxi Rural Investment Sugar Industry Group Co's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.91. As of today, Guangxi Rural Investment Sugar Industry Group Co's Altman Z-Score is 0.21.


Competitive Comparison of Guangxi Rural Investment Sugar Industry Group Co's Financial Strength

For the Confectioners subindustry, Guangxi Rural Investment Sugar Industry Group 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.


Guangxi Rural Investment Sugar Industry Group Co's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Guangxi Rural Investment Sugar Industry Group Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Guangxi Rural Investment Sugar Industry Group Co's Financial Strength falls into.



Guangxi Rural Investment Sugar Industry Group 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:

Guangxi Rural Investment Sugar Industry Group Co's Interest Expense for the months ended in Jun. 2024 was ¥-31 Mil. Its Operating Income for the months ended in Jun. 2024 was ¥46 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was ¥284 Mil.

Guangxi Rural Investment Sugar Industry Group Co's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*45.549/-30.552
=1.49

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Guangxi Rural Investment Sugar Industry Group Co Ltd interest coverage is 1.42, which is low.

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

Guangxi Rural Investment Sugar Industry Group Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2865.988 + 283.605) / 3449.892
=0.91

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.

Guangxi Rural Investment Sugar Industry Group Co has a Z-score of 0.21, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.21 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.


Guangxi Rural Investment Sugar Industry Group Co  (SZSE:000911) 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.

Guangxi Rural Investment Sugar Industry Group Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Guangxi Rural Investment Sugar Industry Group Co Financial Strength Related Terms

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Guangxi Rural Investment Sugar Industry Group Co Business Description

Traded in Other Exchanges
N/A
Address
No. 30, Xiangzhu Avenue, Qingxiu District, Guangxi Zhuang Autonomous Region, Nanning, CHN, 530023
Guangxi Rural Investment Sugar Industry Group Co Ltd is a China-based company mainly engaged in the production and sales of mechanism sugar and mechanism paper. Its products include Mingyang brand white sugar, Yunou brand white sugar, and Damingshan brand white granulated sugar.
Executives
Liang Ge Fu Independent director
Hu Chao Yong Executives
Wang Guo Liang Director
Lu Tian Mei Director
Du Da Qiang Supervisors
Wei Yong Shang Executives

Guangxi Rural Investment Sugar Industry Group Co Headlines

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