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Hangzhou Shenhao Technology Co (SZSE:300853) Financial Strength : 3 (As of Mar. 2025)


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What is Hangzhou Shenhao Technology Co Financial Strength?

Hangzhou Shenhao 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:

Hangzhou Shenhao 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.

Hangzhou Shenhao Technology Co did not have earnings to cover the interest expense. Hangzhou Shenhao Technology Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 12.21. As of today, Hangzhou Shenhao Technology Co's Altman Z-Score is 2.45.


Competitive Comparison of Hangzhou Shenhao Technology Co's Financial Strength

For the Specialty Industrial Machinery subindustry, Hangzhou Shenhao 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.


Hangzhou Shenhao Technology Co's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Hangzhou Shenhao Technology Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Hangzhou Shenhao Technology Co's Financial Strength falls into.


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Hangzhou Shenhao 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:

Hangzhou Shenhao Technology Co's Interest Expense for the months ended in Mar. 2025 was ¥-9.8 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥-40.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥517.1 Mil.

Hangzhou Shenhao Technology Co's Interest Coverage for the quarter that ended in Mar. 2025 is

Hangzhou Shenhao Technology 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.

Hangzhou Shenhao 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
=(111.262 + 517.113) / 51.456
=12.21

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.

Hangzhou Shenhao Technology Co has a Z-score of 2.45, indicating it is in Grey Zones. This implies that Hangzhou Shenhao Technology 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 2.45 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.


Hangzhou Shenhao Technology Co  (SZSE:300853) 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.

Hangzhou Shenhao 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.


Hangzhou Shenhao Technology Co Financial Strength Related Terms

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Hangzhou Shenhao Technology Co Business Description

Traded in Other Exchanges
N/A
Address
No. 21 Longtan Road, Cangqian Street, Yuhang District, Zhejiang, Hangzhou, CHN, 311121
Hangzhou Shenhao Technology Co Ltd is specialized in research and development, production, sales and technical services of smart grid monitoring equipment, power distribution and automation control equipment. The company's products include Smart Robot, Public Health, and Smart Wearable Device.

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