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Foshan Electrical And Lighting Co (SZSE:200541) Financial Strength : 7 (As of Mar. 2025)


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What is Foshan Electrical And Lighting Co Financial Strength?

Foshan Electrical And Lighting Co has the Financial Strength Rank of 7.

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.

Foshan Electrical And Lighting Co's Interest Coverage for the quarter that ended in Mar. 2025 was 27.45. Foshan Electrical And Lighting Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.07. As of today, Foshan Electrical And Lighting Co's Altman Z-Score is 1.86.


Competitive Comparison of Foshan Electrical And Lighting Co's Financial Strength

For the Electrical Equipment & Parts subindustry, Foshan Electrical And Lighting 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.


Foshan Electrical And Lighting Co's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Foshan Electrical And Lighting Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Foshan Electrical And Lighting Co's Financial Strength falls into.


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Foshan Electrical And Lighting 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:

Foshan Electrical And Lighting Co's Interest Expense for the months ended in Mar. 2025 was HK$-4 Mil. Its Operating Income for the months ended in Mar. 2025 was HK$110 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was HK$254 Mil.

Foshan Electrical And Lighting 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*110.331/-4.02
=27.45

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

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

Foshan Electrical And Lighting 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
=(424.112 + 254.148) / 9200.016
=0.07

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.

Foshan Electrical And Lighting Co has a Z-score of 1.86, indicating it is in Grey Zones. This implies that Foshan Electrical And Lighting 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 1.86 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.


Foshan Electrical And Lighting Co  (SZSE:200541) 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.

Foshan Electrical And Lighting Co has the Financial Strength Rank of 7.


Foshan Electrical And Lighting Co Financial Strength Related Terms

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Foshan Electrical And Lighting Co Business Description

Traded in Other Exchanges
Address
No. 64, Fenjiang North Road, Chancheng District, Guangdong, Foshan, CHN, 528000
Foshan Electrical And Lighting Co Ltd are engaged in the production, research & development, and sale of lighting products. Its products include electrical products such as LED light sources & luminaries, automotive LED luminaries, traditional light source switches, and sockets. Foshan's products are widely used in-store channels, smart homes, wholesale channels, industrial & mining outdoor channels, and engineering businesses. The majority of its revenue comes from the domestic market.
Executives
Yin Jian Chun Executives
Pan Jie Director
Zhuang Jian Yi Director
Jiao Zhi Gang Supervisors

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