What is Weihai Huadong Automation Co Financial Strength?
Weihai Huadong Automation Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Weihai Huadong Automation 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.
Weihai Huadong Automation Co's Interest Coverage for the quarter that ended in Jun. 2024 was 2.01.
Weihai Huadong Automation Co's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.40.
As of today, Weihai Huadong Automation Co's Altman Z-Score is 0.17.
Competitive Comparison of Weihai Huadong Automation Co's Financial Strength
For the Specialty Industrial Machinery subindustry, Weihai Huadong Automation 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.
Weihai Huadong Automation Co's Financial Strength Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Weihai Huadong Automation Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Weihai Huadong Automation Co's Financial Strength falls into.
Weihai Huadong Automation 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.
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:
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.
Weihai Huadong Automation Co has a Z-score of 0.17, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.17 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.
Weihai Huadong Automation Co (SZSE:002248) 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.
Weihai Huadong Automation Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Weihai Huadong Automation Co Financial Strength Related Terms
Thank you for viewing the detailed overview of Weihai Huadong Automation Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Weihai Huadong Automation Co Ltd operates in the general equipment manufacturing industry. The company is engaged in an ordinary machine tool manufacturing business. The products of the company include CNC gantry milling and boring machine which include fixed beam fixed column, fixed beam moving a column, and moving beam moving the column, CNC floor boring and milling machine series, CNC vertical lathe, and horizontal machining center.
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