What is Chun Yu Works Financial Strength?
Chun Yu Works 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:
Chun Yu Works & 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 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.
Chun Yu Works's Interest Coverage for the quarter that ended in Mar. 2024 was 4.02.
Chun Yu Works's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.63.
As of today, Chun Yu Works's Altman Z-Score is 1.91.
Competitive Comparison of Chun Yu Works's Financial Strength
For the Steel subindustry, Chun Yu Works'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.
Chun Yu Works's Financial Strength Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Chun Yu Works's Financial Strength distribution charts can be found below:
* The bar in red indicates where Chun Yu Works's Financial Strength falls into.
Chun Yu Works 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:
Chun Yu Works's Interest Expense for the
months ended in Mar. 2024 was NT$-27 Mil. Its Operating Income for the
months ended in Mar. 2024 was NT$110 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was NT$3,112 Mil.
Chun Yu Works's Interest Coverage for the quarter that ended in Mar. 2024 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Chun Yu Works & Co Ltd interest coverage is 3.74, which is low.
2. Debt to revenue ratio. The lower, the better.
Chun Yu Works's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is
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.
Chun Yu Works has a Z-score of 1.91, indicating it is in Grey Zones. This implies that Chun Yu Works 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 1.91 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.
Chun Yu Works (TPE:2012) Business Description
Traded in Other Exchanges
N/A
Address
No.100, Tapao street, Kangshan Town, Kaohsiung, TWN, 82063
Chun Yu Works & Co Ltd manufactures steel products. The company's product portfolio comprises aerospace fasteners and medical equipment, automotive fasteners, cold drown wire and annealing wire, bolts, nuts, and self-tapping screws, among others. The group's reportable segment consists of the Screw segment; Primarily engaged in the manufacture, process, and trade of screws and nuts. This segment generates the majority of the revenue. Machinery segment is engaged in the manufacture, assembly, and trade of machine tools and chemical machinery. Investment segment engages in the general investment.
Chun Yu Works (TPE:2012) Headlines
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