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Ecovacs Robotics Co (SHSE:603486) Financial Strength : 8 (As of Mar. 2025)


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What is Ecovacs Robotics Co Financial Strength?

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

Good Sign:

Ecovacs Robotics 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.

Ecovacs Robotics Co's Interest Coverage for the quarter that ended in Mar. 2025 was 21.86. Ecovacs Robotics Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.13. As of today, Ecovacs Robotics Co's Altman Z-Score is 5.41.


Competitive Comparison of Ecovacs Robotics Co's Financial Strength

For the Furnishings, Fixtures & Appliances subindustry, Ecovacs Robotics 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.


Ecovacs Robotics Co's Financial Strength Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Ecovacs Robotics Co's Financial Strength distribution charts can be found below:

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


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Ecovacs Robotics 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:

Ecovacs Robotics Co's Interest Expense for the months ended in Mar. 2025 was ¥-18 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥387 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥1,047 Mil.

Ecovacs Robotics Co's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*386.819/-17.697
=21.86

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

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

Ecovacs Robotics Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(941.656 + 1046.574) / 15432.936
=0.13

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.

Ecovacs Robotics Co has a Z-score of 5.41, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.41 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.


Ecovacs Robotics Co  (SHSE:603486) 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.

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


Ecovacs Robotics Co Financial Strength Related Terms

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Ecovacs Robotics Co Business Description

Traded in Other Exchanges
N/A
Address
No. 108 Shihu West Road, Wuzhong District, Suzhou, CHN, 215168
Ecovacs Robotics Co Ltd is engaged in Research and development, design, production and sales of various types of household service robots, small cleaning appliances and other intelligent household equipment and related components.
Executives
Leng Ling Director
Li Qian Huan Director
Ma Jian Jun Director
Xu Wei Qiang senior management
Liu Peng Hai Director
Li Yan Director
Zhou Yang Hua Director
Qian Dong Qi Director

Ecovacs Robotics Co Headlines

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