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Charoen Pokphand Enterprise(Taiwan) Co (TPE:1215) Financial Strength : 3 (As of Dec. 2024)


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What is Charoen Pokphand Enterprise(Taiwan) Co Financial Strength?

Charoen Pokphand Enterprise(Taiwan) 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:

Charoen Pokphand Enterprise(Taiwan) 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.

Charoen Pokphand Enterprise(Taiwan) Co's Interest Coverage for the quarter that ended in Dec. 2024 was 11.97. Charoen Pokphand Enterprise(Taiwan) Co's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.53. As of today, Charoen Pokphand Enterprise(Taiwan) Co's Altman Z-Score is 2.38.


Competitive Comparison of Charoen Pokphand Enterprise(Taiwan) Co's Financial Strength

For the Packaged Foods subindustry, Charoen Pokphand Enterprise(Taiwan) 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.


Charoen Pokphand Enterprise(Taiwan) Co's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Charoen Pokphand Enterprise(Taiwan) Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Charoen Pokphand Enterprise(Taiwan) Co's Financial Strength falls into.


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Charoen Pokphand Enterprise(Taiwan) 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:

Charoen Pokphand Enterprise(Taiwan) Co's Interest Expense for the months ended in Dec. 2024 was NT$-70 Mil. Its Operating Income for the months ended in Dec. 2024 was NT$841 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was NT$8,949 Mil.

Charoen Pokphand Enterprise(Taiwan) Co's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*840.692/-70.241
=11.97

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

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

Charoen Pokphand Enterprise(Taiwan) Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6705.127 + 8948.718) / 29304.784
=0.53

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.

Charoen Pokphand Enterprise(Taiwan) Co has a Z-score of 2.38, indicating it is in Grey Zones. This implies that Charoen Pokphand Enterprise(Taiwan) 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 2.38 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.


Charoen Pokphand Enterprise(Taiwan) Co  (TPE:1215) 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.

Charoen Pokphand Enterprise(Taiwan) 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.


Charoen Pokphand Enterprise(Taiwan) Co Financial Strength Related Terms

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Charoen Pokphand Enterprise(Taiwan) Co Business Description

Traded in Other Exchanges
N/A
Address
No. 87, Songjiang Road, 17th Floor, Taipei, TWN, 104
Charoen Pokphand Enterprise(Taiwan) Co Ltd is a poultry processing company based in Taiwan. Its products include processed meat products, feedstuff, and processed cooked feedstuff, including chicken floss, hams, chicken nuggets, chicken chops, bacon, and others. It has four reportable segments. Feeds business that manufactures and sells animal feeds and wholesale of the commodity; Meat processing business; Food processing business; Husbandry business that includes management of chickens to produce eggs and meat. Its geographical segments are Domestic and Asia, of which the majority of its revenue comes from the domestic market.

Charoen Pokphand Enterprise(Taiwan) Co Headlines

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