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Ecopro Co (XKRX:086520) Financial Strength : 3 (As of Dec. 2024)


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What is Ecopro Co Financial Strength?

Ecopro 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:

Ecopro 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.

Ecopro Co did not have earnings to cover the interest expense. Ecopro Co's debt to revenue ratio for the quarter that ended in Dec. 2024 was 1.24. As of today, Ecopro Co's Altman Z-Score is 1.37.


Competitive Comparison of Ecopro Co's Financial Strength

For the Electrical Equipment & Parts subindustry, Ecopro 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.


Ecopro Co's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Ecopro Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Ecopro Co's Financial Strength falls into.


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Ecopro 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:

Ecopro Co's Interest Expense for the months ended in Dec. 2024 was ₩-29,547 Mil. Its Operating Income for the months ended in Dec. 2024 was ₩-99,793 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was ₩1,587,947 Mil.

Ecopro Co's Interest Coverage for the quarter that ended in Dec. 2024 is

Ecopro Co 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.

Ecopro 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
=(1623348.005 + 1587946.841) / 2595562.024
=1.24

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.

Ecopro Co has a Z-score of 1.37, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.37 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.


Ecopro Co  (XKRX:086520) 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.

Ecopro 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.


Ecopro Co Financial Strength Related Terms

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


Ecopro Co Business Description

Traded in Other Exchanges
N/A
Address
316-3 Songdae-ri, Ochang-eub, Cheonwon-gun, Chungcheong, KOR, 363-886
Ecopro Co Ltd is involved in the battery material and environment business. It has two divisions, battery-material and environment. Its products include, cathode active materials, electrolyte solvents, non-carbon balls, polymers among others.

Ecopro Co Headlines

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