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Guangzhou Tinci Materials Technology Co (SZSE:002709) Financial Strength : 5 (As of Mar. 2025)


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What is Guangzhou Tinci Materials Technology Co Financial Strength?

Guangzhou Tinci Materials Technology Co has the Financial Strength Rank of 5.

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.

Guangzhou Tinci Materials Technology Co's Interest Coverage for the quarter that ended in Mar. 2025 was 4.30. Guangzhou Tinci Materials Technology Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.50. As of today, Guangzhou Tinci Materials Technology Co's Altman Z-Score is 3.34.


Competitive Comparison of Guangzhou Tinci Materials Technology Co's Financial Strength

For the Specialty Chemicals subindustry, Guangzhou Tinci Materials Technology 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.


Guangzhou Tinci Materials Technology Co's Financial Strength Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Guangzhou Tinci Materials Technology Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Guangzhou Tinci Materials Technology Co's Financial Strength falls into.


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Guangzhou Tinci Materials Technology 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:

Guangzhou Tinci Materials Technology Co's Interest Expense for the months ended in Mar. 2025 was ¥-60 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥256 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥4,604 Mil.

Guangzhou Tinci Materials Technology 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*255.763/-59.522
=4.30

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

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

Guangzhou Tinci Materials Technology 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
=(2356.946 + 4604.491) / 13954.624
=0.50

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.

Guangzhou Tinci Materials Technology Co has a Z-score of 3.34, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.34 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.


Guangzhou Tinci Materials Technology Co  (SZSE:002709) 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.

Guangzhou Tinci Materials Technology Co has the Financial Strength Rank of 5.


Guangzhou Tinci Materials Technology Co Financial Strength Related Terms

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Guangzhou Tinci Materials Technology Co Business Description

Traded in Other Exchanges
N/A
Address
No. 8, Dongcheng Tablet, Kangda Road, Yunpu Industrial Zone, Huangpu District, Guangdong, Guangzhou, CHN, 510700
Guangzhou Tinci Materials Technology Co Ltd is engaged in Research & Development, production and sales of new fine chemical materials.
Executives
Xu Jin Fu Directors, executives
Zhao Jing Wei Director
Xu San Shan Directors, executives
Gu Bin Directors, executives
Li Xing Hua Supervisors
Chen Xun Wu Director
Xuan Da Yan Secretary, Director
Zhou Shun Wu Executives
Zhang Li Ping Directors, executives
Pan Guo Zhong Secretary, Director

Guangzhou Tinci Materials Technology Co Headlines

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