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Ningbo Orient Wires & Cables Co (SHSE:603606) Financial Strength

: 8 (As of Dec. 2023)
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Ningbo Orient Wires & Cables Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Ningbo Orient Wires & Cables 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.

Ningbo Orient Wires & Cables Co's Interest Coverage for the quarter that ended in Dec. 2023 was 32.42. Ningbo Orient Wires & Cables Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.11. As of today, Ningbo Orient Wires & Cables Co's Altman Z-Score is 6.04.


Competitive Comparison

For the Electrical Equipment & Parts subindustry, Ningbo Orient Wires & Cables 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.


Ningbo Orient Wires & Cables Co Financial Strength Distribution

For the Industrial Products industry and Industrials sector, Ningbo Orient Wires & Cables Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Ningbo Orient Wires & Cables Co's Financial Strength falls into.



Ningbo Orient Wires & Cables 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:

Ningbo Orient Wires & Cables 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 ¥264 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ¥360 Mil.

Ningbo Orient Wires & Cables Co's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*264.052/-8.145
=32.42

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

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

Ningbo Orient Wires & Cables Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(467.105 + 360.469) / 7842.176
=0.11

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.

Ningbo Orient Wires & Cables Co has a Z-score of 6.04, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.04 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.


Ningbo Orient Wires & Cables Co  (SHSE:603606) 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.

Ningbo Orient Wires & Cables Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Ningbo Orient Wires & Cables Co Financial Strength Related Terms

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Ningbo Orient Wires & Cables Co (SHSE:603606) Business Description

Traded in Other Exchanges
N/A
Address
968 East JiangNan Road, Beilun District, Zhejiang, Ningbo, CHN
Ningbo Orient Wires & Cables Co Ltd is a China-based fiber optic cable manufacturing company. The company is a provider in design, manufacture, install, and service of land cables and subsea cables. Its products are mainly used by the energy companies and subsea service providers. Its subsea cables products include AC subsea power cables, DC subsea power cables, Subsea Equipment Umbilical, Subsea dynamic cables used in a submarine. Its power cable offerings include D.C Power Cable, LV Power Cable(1kV), MV Power Cable(6-35kV), HV Power Cable(110kV), among others.

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