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Guangzhou Great Power Energy&Technology Co (SZSE:300438) Financial Strength : 3 (As of Mar. 2025)


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What is Guangzhou Great Power Energy&Technology Co Financial Strength?

Guangzhou Great Power Energy&Technology 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:

Guangzhou Great Power Energy&Technology 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 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 Great Power Energy&Technology Co's Interest Coverage for the quarter that ended in Mar. 2025 was 1.97. Guangzhou Great Power Energy&Technology Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.59. As of today, Guangzhou Great Power Energy&Technology Co's Altman Z-Score is 1.19.


Competitive Comparison of Guangzhou Great Power Energy&Technology Co's Financial Strength

For the Electrical Equipment & Parts subindustry, Guangzhou Great Power Energy&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 Great Power Energy&Technology Co's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Guangzhou Great Power Energy&Technology Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Guangzhou Great Power Energy&Technology Co's Financial Strength falls into.


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Guangzhou Great Power Energy&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 Great Power Energy&Technology Co's Interest Expense for the months ended in Mar. 2025 was ¥-25 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥49 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥2,317 Mil.

Guangzhou Great Power Energy&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*49/-24.89
=1.97

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. Guangzhou Great Power Energy&Technology Co Ltd interest coverage is 1.97, which is low.

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

Guangzhou Great Power Energy&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
=(1673.348 + 2317.037) / 6760.384
=0.59

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 Great Power Energy&Technology Co has a Z-score of 1.19, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.19 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.


Guangzhou Great Power Energy&Technology Co  (SZSE:300438) 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 Great Power Energy&Technology 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.


Guangzhou Great Power Energy&Technology Co Financial Strength Related Terms

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Guangzhou Great Power Energy&Technology Co Business Description

Traded in Other Exchanges
N/A
Address
No. 912, Shiliang Road,Shawan, Panyu District, Guangdong Province, Guangzhou City, CHN, 511483
Guangzhou Great Power Energy&Technology Co Ltd is engaged in producing secondary batteries like lithium ion, lithium ion and nickel hydrogen, lithium iron, lithium manganese, lithium thionyl chloride, zinc and, other primary batteries.
Executives
Xia Xin De Director
Li Fa Jun Executives
Li Xia Nan Supervisors
Liang Chao Hui Director
Wei Zhong Kui Supervisors
Xu Han Liang Director
Cai Jian Yi Supervisors

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