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Cheil Industries (XKRX:001300) Financial Strength : 0 (As of Mar. 2016)


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What is Cheil Industries Financial Strength?

Cheil Industries has the Financial Strength Rank of 0.

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.

Cheil Industries did not have earnings to cover the interest expense. Cheil Industries's debt to revenue ratio for the quarter that ended in Mar. 2016 was 0.33. As of today, Cheil Industries's Altman Z-Score is 1.47.


Competitive Comparison of Cheil Industries's Financial Strength

For the Chemicals subindustry, Cheil Industries'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.


Cheil Industries's Financial Strength Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Cheil Industries's Financial Strength distribution charts can be found below:

* The bar in red indicates where Cheil Industries's Financial Strength falls into.



Cheil Industries 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:

Cheil Industries's Interest Expense for the months ended in Mar. 2016 was ₩-43,361 Mil. Its Operating Income for the months ended in Mar. 2016 was ₩-406,055 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2016 was ₩2,605,099 Mil.

Cheil Industries's Interest Coverage for the quarter that ended in Mar. 2016 is

Cheil Industries did not have earnings to cover the interest expense.

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

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

Cheil Industries's Debt to Revenue Ratio for the quarter that ended in Mar. 2016 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2016 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(3479271.345 + 2605098.848) / 18238689.076
=0.33

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.

Cheil Industries has a Z-score of 1.47, indicating it is in Distress Zones. This implies bankrupcy 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.


Cheil Industries  (XKRX:001300) 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.

Cheil Industries has the Financial Strength Rank of 0.


Cheil Industries Financial Strength Related Terms

Thank you for viewing the detailed overview of Cheil Industries's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Cheil Industries (XKRX:001300) Business Description

Traded in Other Exchanges
N/A
Address
Samsung C&T Corp was founded in 1938. The Company was formed from the merger of Samsung C&T Corporation ('Samsung C&T') and Cheil Industries Inc. The Company operates four business including engineering & construction, trading & investment, fashion and resort & construction. In the engineering & construction business it provides services including planning, design, purchasing, construction and management of buildings, civil infrastructure, power plants and housing & developments. The Company's trading & investment business includes trading of industrial commodities such as chemicals, steel and natural resources, and organizing projects such as power plant, renewable energy and infrastructure development. The Company also trades chemicals and industrial materials including fertilizer, mining chemicals, methanol and electronic materials, steel products including hot rolled steel, plate and automotive steel, and natural resources including coal and copper. It also operates palm plantation. The Company's fashion business is engaged in manufacturing and designing fashion products and offers brands including 8 Seconds, 10 Corso Como Seoul, Aann Demeulemeester, Beanpole Men, Beanpole Ladies, Beanpole Kids, Beanpole Golf, Beanpole Accessory, Beanpole Outdoor, Balmain, Beaker, Colombo, Comme Des Garcons, Galaxy, Giuseppe Zanotti, Kuho, Lansmere, Lebeige and Valextra. The Company's resort business is engaged in operating Everland & Caribbean Bay resorts and Golf Clubs; and also engaged in construction, plant, and landscaping businesses.

Cheil Industries (XKRX:001300) Headlines

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