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Wuxi Smart Auto-control Engineering Co (SZSE:002877) Financial Strength : 5 (As of Mar. 2024)


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What is Wuxi Smart Auto-control Engineering Co Financial Strength?

Wuxi Smart Auto-control Engineering Co 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.

Wuxi Smart Auto-control Engineering Co's Interest Coverage for the quarter that ended in Mar. 2024 was 3.76. Wuxi Smart Auto-control Engineering Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.85. As of today, Wuxi Smart Auto-control Engineering Co's Altman Z-Score is 2.54.


Competitive Comparison of Wuxi Smart Auto-control Engineering Co's Financial Strength

For the Specialty Industrial Machinery subindustry, Wuxi Smart Auto-control Engineering 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.


Wuxi Smart Auto-control Engineering Co's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Wuxi Smart Auto-control Engineering Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Wuxi Smart Auto-control Engineering Co's Financial Strength falls into.



Wuxi Smart Auto-control Engineering 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:

Wuxi Smart Auto-control Engineering Co's Interest Expense for the months ended in Mar. 2024 was ¥-6 Mil. Its Operating Income for the months ended in Mar. 2024 was ¥21 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ¥325 Mil.

Wuxi Smart Auto-control Engineering Co's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*21.214/-5.649
=3.76

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

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

Wuxi Smart Auto-control Engineering Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(428.125 + 324.892) / 886.716
=0.85

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.

Wuxi Smart Auto-control Engineering Co has a Z-score of 2.54, indicating it is in Grey Zones. This implies that Wuxi Smart Auto-control Engineering Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.54 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Wuxi Smart Auto-control Engineering Co  (SZSE:002877) 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.

Wuxi Smart Auto-control Engineering Co has the Financial Strength Rank of 5.


Wuxi Smart Auto-control Engineering Co Financial Strength Related Terms

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Wuxi Smart Auto-control Engineering Co (SZSE:002877) Business Description

Traded in Other Exchanges
N/A
Address
No. 258 Xida Road, Meicun Wuxi New District, Jiangsu, Wuxi, CHN, 214112
Wuxi Smart Auto-control Engineering Co Ltd is a China based company engaged in the research and development, manufacturing, sales and service of intelligent control valves in the field of industrial process control. It offers customers with industrial solution control valve solutions under various working conditions. The product portfolio of the company includes P/J series single seat valve, R series ball valve, F series anti-corrosion, W series butterfly valve, T series three-way valve, Z series special valve, Y series self-operated valve, and Q series pneumatic actuator. The company's products and technologies are used in petroleum, chemical, steel, metallurgy, textile, energy, electricity, food, environmental protection and other industries.
Executives
Chen Yan Director
Zhong Pei Ya Executives
Wu Wei Director
Du Xue Jun Executives
Shen Jian Fei Directors, Directors, and Executives
Sun Ming Dong Supervisors

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