What is Shin-Etsu Chemical Co Financial Strength?
Shin-Etsu Chemical Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Shin-Etsu Chemical 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.
Shin-Etsu Chemical Co's Interest Coverage for the quarter that ended in Dec. 2023 was 159.00.
Shin-Etsu Chemical Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.01.
As of today, Shin-Etsu Chemical Co's Altman Z-Score is 12.70.
Competitive Comparison of Shin-Etsu Chemical Co's Financial Strength
For the Chemicals subindustry, Shin-Etsu Chemical 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.
Shin-Etsu Chemical Co's Financial Strength Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shin-Etsu Chemical Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Shin-Etsu Chemical Co's Financial Strength falls into.
Shin-Etsu Chemical 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:
Shin-Etsu Chemical Co's Interest Expense for the
months ended in Dec. 2023 was $-8 Mil. Its Operating Income for the
months ended in Dec. 2023 was $1,234 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $130 Mil.
Shin-Etsu Chemical Co's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Shin-Etsu Chemical Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Shin-Etsu Chemical Co'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.
Shin-Etsu Chemical Co has a Z-score of 12.70, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 12.7 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.
Shin-Etsu Chemical Co (Shin-Etsu Chemical Co) Business Description
Traded in Other Exchanges
Address
6-1, Ohtemachi 2-chome, Chiyoda-ku, Tokyo, JPN, 100-0004
Shin-Etsu Chemical Co Ltd is a Japan-based company primarily engaged in chemical business. The company operates in six business segments namely Poly Vinyl Chloride, Specialty Chemicals, Silicon, Semiconductor Silicon, Electronic and Functional Materials and Diversified business. It derives majority of revenue through Poly Vinyl Chloride segment which manufactures and sells vinyl chloride, caustic soda products, chloromethane and methanol. The group is also involved in manufacturing and selling of various other chemical products such as Polyvinyl alcohol, Synthetic pheromones, Rare-earth magnets for electronics industry and general applications, Photoresists, Photomask blanks and others. Geographically, it operates from the market of Japan and its business is amplifying across the globe.
Shin-Etsu Chemical Co (Shin-Etsu Chemical Co) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SHECY has been successfully added to your