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Foshan Golden Milky Way Intelligent Equipment Co (SZSE:300619) Financial Strength : 2 (As of Mar. 2025)


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What is Foshan Golden Milky Way Intelligent Equipment Co Financial Strength?

Foshan Golden Milky Way Intelligent Equipment Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Foshan Golden Milky Way Intelligent Equipment 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.

Foshan Golden Milky Way Intelligent Equipment Co did not have earnings to cover the interest expense. Foshan Golden Milky Way Intelligent Equipment Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 2.98. As of today, Foshan Golden Milky Way Intelligent Equipment Co's Altman Z-Score is 1.36.


Competitive Comparison of Foshan Golden Milky Way Intelligent Equipment Co's Financial Strength

For the Specialty Industrial Machinery subindustry, Foshan Golden Milky Way Intelligent Equipment 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 Golden Milky Way Intelligent Equipment Co's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Foshan Golden Milky Way Intelligent Equipment Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Foshan Golden Milky Way Intelligent Equipment Co's Financial Strength falls into.


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Foshan Golden Milky Way Intelligent Equipment 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 Golden Milky Way Intelligent Equipment Co's Interest Expense for the months ended in Mar. 2025 was ¥-19 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥-50 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥345 Mil.

Foshan Golden Milky Way Intelligent Equipment Co's Interest Coverage for the quarter that ended in Mar. 2025 is

Foshan Golden Milky Way Intelligent Equipment Co did not have earnings to cover the interest expense.

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

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

Foshan Golden Milky Way Intelligent Equipment 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
=(1418.279 + 345.056) / 591.148
=2.98

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 Golden Milky Way Intelligent Equipment Co has a Z-score of 1.36, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.36 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.


Foshan Golden Milky Way Intelligent Equipment Co  (SZSE:300619) 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 Golden Milky Way Intelligent Equipment Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Foshan Golden Milky Way Intelligent Equipment Co Financial Strength Related Terms

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Foshan Golden Milky Way Intelligent Equipment Co Business Description

Traded in Other Exchanges
N/A
Address
No. 1, 2, 4, 5, 6 and 7 of Baoyun Road, Southwest Street, Sanshui District, Guangdong Province, Foshan, CHN, 528100
Foshan Golden Milky Way Intelligent Equipment Co Ltd is engaged in the research, development, design, and production of intelligent systems for measuring, mixing, dispersing, reacting, filling, packaging, on-line inspection, and central control. Its products are mainly used in silicone and polymer compounds, lithium battery industry, biochemistry and other fields.
Executives
Xiong Ren Feng Directors, executives
Liang Ke Directors, executives
Wang Bao Hua Supervisors
Zhang Qi Fa Directors, executives
Lang Xiang Fei Directors, executives
Yu Dan Xian Supervisors

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