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Shenzhen Lions King Hi Tech Co (SZSE:301305) Financial Strength : 5 (As of Mar. 2025)


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What is Shenzhen Lions King Hi Tech Co Financial Strength?

Shenzhen Lions King Hi Tech Co has the Financial Strength Rank of 5.

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.

Shenzhen Lions King Hi Tech Co's Interest Coverage for the quarter that ended in Mar. 2025 was 7.10. Shenzhen Lions King Hi Tech Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 1.02. As of today, Shenzhen Lions King Hi Tech Co's Altman Z-Score is 2.17.


Competitive Comparison of Shenzhen Lions King Hi Tech Co's Financial Strength

For the Waste Management subindustry, Shenzhen Lions King Hi Tech 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.


Shenzhen Lions King Hi Tech Co's Financial Strength Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Shenzhen Lions King Hi Tech Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Shenzhen Lions King Hi Tech Co's Financial Strength falls into.


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Shenzhen Lions King Hi Tech 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:

Shenzhen Lions King Hi Tech Co's Interest Expense for the months ended in Mar. 2025 was ¥-15 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥106 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥1,531 Mil.

Shenzhen Lions King Hi Tech 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*105.707/-14.888
=7.10

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

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

Shenzhen Lions King Hi Tech 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
=(158.291 + 1530.952) / 1648.828
=1.02

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.

Shenzhen Lions King Hi Tech Co has a Z-score of 2.17, indicating it is in Grey Zones. This implies that Shenzhen Lions King Hi Tech 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 2.17 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.


Shenzhen Lions King Hi Tech Co  (SZSE:301305) 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.

Shenzhen Lions King Hi Tech Co has the Financial Strength Rank of 5.


Shenzhen Lions King Hi Tech Co Financial Strength Related Terms

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Shenzhen Lions King Hi Tech Co Business Description

Traded in Other Exchanges
N/A
Address
Pingqiao Road, Pingdi Street, Floor 13, No. 2, Gaoqiao Community, Longgang District, Guangdong Province, Shenzhen, CHN, 518117
Shenzhen Lions King Hi Tech Co Ltd is engaged in the Harmless treatment and resource utilization of organic solid waste (catering waste, kitchen waste, excrement, animal solid waste, etc.) and urban domestic waste, as well as the provision of related environmental engineering services.
Executives
Chen Jian Xiang Directors, executives

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