Rengo 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:
Rengo 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.
Rengo Co's Interest Coverage for the quarter that ended in Sep. 2024 was 7.23.
Rengo Co's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.45.
As of today, Rengo Co's Altman Z-Score is 1.49.
Competitive Comparison of Rengo Co's Financial Strength
For the Packaging & Containers subindustry, Rengo 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.
Rengo Co's Financial Strength Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Rengo Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Rengo Co's Financial Strength falls into.
Rengo 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.
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.
Rengo Co has a Z-score of 1.49, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.49 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
Rengo Co (TSE:3941) 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.
Rengo 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.
Rengo Co Financial Strength Related Terms
Thank you for viewing the detailed overview of Rengo Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Rengo Co Ltd manufactures and sells a variety of packaging products. The firm organizes itself into four segments based on product type. The paperboard and packaging segment, which generates the majority of revenue, sells corrugated packaging and boxes used primarily to package food and agricultural products. The flexible packaging segment sells films, labels, and cellophane used primarily for food and beverage packaging. The heavy duty packaging segment sells plastic and paper container bags used by the agricultural, transportation, and chemicals industries. The overseas business sells packaging products outside of Japan. The majority of revenue comes from Japan.
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