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Rayence Co (XKRX:228850) Financial Strength : 9 (As of Sep. 2024)


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What is Rayence Co Financial Strength?

Rayence Co has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Rayence Co Ltd shows strong financial strength.

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.

Rayence Co's Interest Coverage for the quarter that ended in Sep. 2024 was 21.51. Rayence Co's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.04. As of today, Rayence Co's Altman Z-Score is 4.59.


Competitive Comparison of Rayence Co's Financial Strength

For the Medical Devices subindustry, Rayence 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.


Rayence Co's Financial Strength Distribution in the Medical Devices & Instruments Industry

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

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



Rayence 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:

Rayence Co's Interest Expense for the months ended in Sep. 2024 was ₩-74 Mil. Its Operating Income for the months ended in Sep. 2024 was ₩1,595 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was ₩2,431 Mil.

Rayence Co's Interest Coverage for the quarter that ended in Sep. 2024 is

Interest Coverage=-1*Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*1594.633/-74.144
=21.51

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

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

Rayence Co's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2225.566 + 2430.891) / 124391.328
=0.04

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.

Rayence Co has a Z-score of 4.59, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.59 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.


Rayence Co  (XKRX:228850) 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.

Rayence Co has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Rayence Co Financial Strength Related Terms

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Rayence Co Business Description

Traded in Other Exchanges
N/A
Address
14 Samsung 1-ro 1-gil, Gyeonggi-do, Hwaseong, KOR, 18449
Rayence Co Ltd is engaged in providing dental, medical, veterinary, and industrial X-ray detector products. It also has the techniques for designing products such as CMOS Wafer, developing flat panel detectors (TFT), and using the core technology of scintillator, which is used for radiation detection. TFT based detectors have diagnostic imaging capabilities with a high grey scale range. CMOS products provide both static and dynamic imaging capabilities and are produced utilizing ASIC design.

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