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Value Added Technology Co (XKRX:043150) Financial Strength : 8 (As of Dec. 2024)


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What is Value Added Technology Co Financial Strength?

Value Added Technology Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Value Added Technology Co Ltd shows strong financial strength.

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.

Value Added Technology Co's Interest Coverage for the quarter that ended in Dec. 2024 was 18.11. Value Added Technology Co's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.11. As of today, Value Added Technology Co's Altman Z-Score is 3.36.


Competitive Comparison of Value Added Technology Co's Financial Strength

For the Medical Devices subindustry, Value Added Technology 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.


Value Added Technology Co's Financial Strength Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Value Added Technology Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Value Added Technology Co's Financial Strength falls into.


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Value Added Technology 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:

Value Added Technology Co's Interest Expense for the months ended in Dec. 2024 was ₩-568 Mil. Its Operating Income for the months ended in Dec. 2024 was ₩10,285 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was ₩16,297 Mil.

Value Added Technology Co's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*10285.091/-567.854
=18.11

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

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

Value Added Technology Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(27289.645 + 16297.167) / 406829.692
=0.11

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.

Value Added Technology Co has a Z-score of 3.36, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.36 is strong.

* 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.


Value Added Technology Co  (XKRX:043150) 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.

Value Added Technology Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Value Added Technology Co Financial Strength Related Terms

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Value Added Technology Co Business Description

Traded in Other Exchanges
N/A
Address
23-4, Seoku-Dong, Hwaseong, Gyeonggi, KOR, 445-170
Value Added Technology Co Ltd is one of Korea's leading companies in the medical device market. The company functions through its group of associates that specialize in developing medical devices in the areas including dental radiography, key components of digital X-ray including a detector, and diagnostic imaging. It also engages in the mechanical designing of its medical systems and other products.

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