What is Di Nikko Engineering Co Financial Strength?
Di Nikko Engineering 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:
Di Nikko Engineering 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.
Di Nikko Engineering Co's Interest Coverage for the quarter that ended in Mar. 2024 was 4.78.
Di Nikko Engineering Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.35.
As of today, Di Nikko Engineering Co's Altman Z-Score is 1.90.
Competitive Comparison of Di Nikko Engineering Co's Financial Strength
For the Electronic Components subindustry, Di Nikko Engineering 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.
Di Nikko Engineering Co's Financial Strength Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Di Nikko Engineering Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Di Nikko Engineering Co's Financial Strength falls into.
Di Nikko Engineering 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:
Di Nikko Engineering Co's Interest Expense for the
months ended in Mar. 2024 was 円-43 Mil. Its Operating Income for the
months ended in Mar. 2024 was 円208 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was 円5,400 Mil.
Di Nikko Engineering Co'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. Di Nikko Engineering Co Ltd interest coverage is 3.29, which is low.
2. Debt to revenue ratio. The lower, the better.
Di Nikko Engineering Co'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.
Di Nikko Engineering Co has a Z-score of 1.90, indicating it is in Grey Zones. This implies that Di Nikko Engineering 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 1.9 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.
Di Nikko Engineering Co (TSE:6635) Business Description
Traded in Other Exchanges
N/A
Address
697-1, Nemuro, Tochigi, Nikko, JPN, 321-2342
Di Nikko Engineering Co Ltd engages in the design, test, manufacture, distribution, and return/repair of electronic components and assemblies for original equipment manufacturers in Japan. Its services include the design to production of the circuit implementation of an electronic board used for an electronics product, an OA apparatus, optical goods, and communications equipment.
Di Nikko Engineering Co (TSE:6635) Headlines
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