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Lien Hwa Industrial Holding (TPE:1229) Financial Strength : 4 (As of Mar. 2025)


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What is Lien Hwa Industrial Holding Financial Strength?

Lien Hwa Industrial Holding has the Financial Strength Rank of 4.

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.

Lien Hwa Industrial Holding's Interest Coverage for the quarter that ended in Mar. 2025 was 1.20. Lien Hwa Industrial Holding's debt to revenue ratio for the quarter that ended in Mar. 2025 was 1.39. As of today, Lien Hwa Industrial Holding's Altman Z-Score is 2.68.


Competitive Comparison of Lien Hwa Industrial Holding's Financial Strength

For the Conglomerates subindustry, Lien Hwa Industrial Holding'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.


Lien Hwa Industrial Holding's Financial Strength Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Lien Hwa Industrial Holding's Financial Strength distribution charts can be found below:

* The bar in red indicates where Lien Hwa Industrial Holding's Financial Strength falls into.


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Lien Hwa Industrial Holding 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:

Lien Hwa Industrial Holding's Interest Expense for the months ended in Mar. 2025 was NT$-56 Mil. Its Operating Income for the months ended in Mar. 2025 was NT$67 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was NT$4,570 Mil.

Lien Hwa Industrial Holding'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*67.255/-56.261
=1.20

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

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

Lien Hwa Industrial Holding'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
=(8875.494 + 4569.756) / 9704.672
=1.39

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.

Lien Hwa Industrial Holding has a Z-score of 2.68, indicating it is in Grey Zones. This implies that Lien Hwa Industrial Holding 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 2.68 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.


Lien Hwa Industrial Holding  (TPE:1229) 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.

Lien Hwa Industrial Holding has the Financial Strength Rank of 4.


Lien Hwa Industrial Holding Financial Strength Related Terms

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Lien Hwa Industrial Holding Business Description

Traded in Other Exchanges
N/A
Address
Nangang Road, 10 Floor, No. 209, Section 1, Nangang District, Taipei, TWN, 115
Lien Hwa Industrial Holding Corp is engaged in flour production and sale, real estate rental, integrated system service, automatic system, and other electronic businesses. The company has five reportable segments. The rental business provides real property rental and development services. The Flour business manufactures and sells all kinds of Flour and processed foods. The system integration service business provides the system integration service, automatic system, applied software design and sale of industrial computer. The administrative resource center is responsible for the management of domestic/foreign investment business.

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