What is Hokkaido Electric Power Co Financial Strength?
Hokkaido Electric Power Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Hokkaido Electric Power Co Inc 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.
Hokkaido Electric Power Co's Interest Coverage for the quarter that ended in Dec. 2023 was 2.32.
Hokkaido Electric Power Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.38.
As of today, Hokkaido Electric Power Co's Altman Z-Score is 0.77.
Competitive Comparison of Hokkaido Electric Power Co's Financial Strength
For the Utilities - Renewable subindustry, Hokkaido Electric Power 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.
Hokkaido Electric Power Co's Financial Strength Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Hokkaido Electric Power Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Hokkaido Electric Power Co's Financial Strength falls into.
Hokkaido Electric Power 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.
Hokkaido Electric Power Co has a Z-score of 0.77, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.77 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.
Hokkaido Electric Power Co (TSE:9509) Financial Strength Explanation
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
Hokkaido Electric Power Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Hokkaido Electric Power Co Financial Strength Related Terms
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Hokkaido Electric Power Co (TSE:9509) Business Description
Hokkaido Electric Power Co, Inc. or HEPCO, is a Japanese electric utility that serves the northernmost island of Hokkaido. HEPCO is involved in the generation, transmission, and distribution of electric energy on the island. The company utilizes a portfolio of hydroelectric, steam, gas, internal combustion, nuclear, geothermal, and solar power plants to do this. While Most of HEPCO's sites are hydroelectric, the company's fossil fuel facilities represent the vast majority of its total energy production and production capacity. Hokkaido Electric Power's electric utility business is responsible for nearly all of its revenue with sales split mainly between residential and commercial/industrial customer groups. Most electrical output, however, is transmitted to residential customers.
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