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Templeton Dragon Fund has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Templeton Dragon Fund Inc shows strong financial strength.
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.
GuruFocus does not calculate Templeton Dragon Fund's interest coverage with the available data.
Templeton Dragon Fund's debt to revenue ratio for the quarter that ended in Dec. 2025 was 0.00.
Altman Z-Score does not apply to banks and insurance companies.
Templeton Dragon Fund (NYSE:TDF) 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.
Templeton Dragon Fund has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Templeton Dragon Fund Financial Strength Related Terms
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:
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.
Altman Z-Score does not apply to banks and insurance companies.
* 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.
Templeton Dragon Fund (TDF) has a Financial Strength of 8 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Templeton Dragon Fund and its competitors. This is near median its historical median of 8.00. Over the past decade, Templeton Dragon Fund's Financial Strength has ranged from 3.00 to 10.00.
Is Templeton Dragon Fund's Financial Strength too high?
Templeton Dragon Fund's current Financial Strength of 8 is near median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 10.00. Overall, Templeton Dragon Fund has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Templeton Dragon Fund's Financial Strength compare to XFLT and JCE?
Templeton Dragon Fund's Financial Strength of 8 can be compared against companies in the Asset Management industry. Historically, Templeton Dragon Fund's own Financial Strength has ranged from 3.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Asset Management company?
A good Financial Strength depends on the Asset Management industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Templeton Dragon Fund and its competitors. Templeton Dragon Fund's current Financial Strength is 8, which is near median its own 10-year median of 8.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Templeton Dragon Fund stock overvalued right now?
Templeton Dragon Fund (TDF) has a current Financial Strength of 8. The current Financial Strength is 8, which is near median its 10-year median of 8.00. Templeton Dragon Fund's overall GF Score™ is 38/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Templeton Dragon Fund (TDF), the current Financial Strength is 8 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Templeton Dragon Fund Inc is a closed-end management investment company. The fund seeks long-term capital appreciation by investing majority of its total assets in equity securities of China companies. It invest in various sectors such as gas & consumable fuels, auto components, banks, beverages, communications equipment, healthcare equipment & supplies, restaurants & leisure, household durables and many others.
38GF Score
Get the complete analysis for TDF
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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