What is China Longyuan Power Group Financial Strength?
China Longyuan Power Group has the Financial Strength Rank of 4.
Warning Sign:
China Longyuan Power Group Corp 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 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.
China Longyuan Power Group's Interest Coverage for the quarter that ended in Dec. 2023 was 3.62.
China Longyuan Power Group's debt to revenue ratio for the quarter that ended in Dec. 2023 was 3.06.
As of today, China Longyuan Power Group's Altman Z-Score is 0.90.
Competitive Comparison of China Longyuan Power Group's Financial Strength
For the Utilities - Renewable subindustry, China Longyuan Power Group'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.
China Longyuan Power Group's Financial Strength Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, China Longyuan Power Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where China Longyuan Power Group's Financial Strength falls into.
China Longyuan Power Group 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:
China Longyuan Power Group's Interest Expense for the
months ended in Dec. 2023 was $-114 Mil. Its Operating Income for the
months ended in Dec. 2023 was $413 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $10,294 Mil.
China Longyuan Power Group's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. China Longyuan Power Group Corp Ltd interest coverage is 4.04, which is low.
2. Debt to revenue ratio. The lower, the better.
China Longyuan Power Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
China Longyuan Power Group has a Z-score of 0.90, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.9 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.
China Longyuan Power Group (China Longyuan Power Group) Business Description
Traded in Other Exchanges
Address
6 Fuchengmen North Street, Room 2006, 20th Floor, Block C, Xicheng District, Beijing, CHN
Longyuan is China's largest wind farm operator, with consolidated installed wind capacity of 26.2 gigawatts as of end-2022, representing about 7% of nationwide wind capacity. It has more than 400 wind farms spread across China, and has also expanded into other countries such as Canada and South Africa. Longyuan owns two coal-fired power plants in Jiangsu and operates other renewable assets such as solar, geothermal, and tidal energy on a limited scale. The consolidated installed capacity mix is about 84% wind, 6% thermal, and the remainder in other renewables. China Energy Investment, which was created through the merger of China Guodian Corporation and China Shenhua Group, is the major shareholder with a controlling stake of about 58.6%.
China Longyuan Power Group (China Longyuan Power Group) Headlines
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