GURUFOCUS.COM » STOCK LIST » Asia » China » SHSE » Zhangjiagang Guangda Special Material Co Ltd (SHSE:688186) » Definitions » Financial Strength
Switch to:

Zhangjiagang Guangda Special Material Co (SHSE:688186) Financial Strength

: 3 (As of Jun. 2023)
View and export this data going back to 2020. Start your Free Trial

Zhangjiagang Guangda Special Material Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Zhangjiagang Guangda Special Material Co 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.

Zhangjiagang Guangda Special Material Co's Interest Coverage for the quarter that ended in Jun. 2023 was 3.07. Zhangjiagang Guangda Special Material Co's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.87. As of today, Zhangjiagang Guangda Special Material Co's Altman Z-Score is 1.06.


Competitive Comparison

For the Steel subindustry, Zhangjiagang Guangda Special Material 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.

   

Zhangjiagang Guangda Special Material Co Financial Strength Distribution

For the Steel industry and Basic Materials sector, Zhangjiagang Guangda Special Material Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Zhangjiagang Guangda Special Material Co's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.



Zhangjiagang Guangda Special Material 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:

Zhangjiagang Guangda Special Material Co's Interest Expense for the months ended in Jun. 2023 was ¥-25 Mil. Its Operating Income for the months ended in Jun. 2023 was ¥77 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was ¥3,139 Mil.

Zhangjiagang Guangda Special Material Co's Interest Coverage for the quarter that ended in Jun. 2023 is

Interest Coverage=-1*Operating Income (Q: Jun. 2023 )/Interest Expense (Q: Jun. 2023 )
=-1*76.999/-25.06
=3.07

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. Zhangjiagang Guangda Special Material Co Ltd interest coverage is 3.41, which is low.

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

Zhangjiagang Guangda Special Material Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(999.237 + 3139.27) / 4760.688
=0.87

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.

Zhangjiagang Guangda Special Material Co has a Z-score of 1.06, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.06 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.


Zhangjiagang Guangda Special Material Co  (SHSE:688186) 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.

Zhangjiagang Guangda Special Material Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Zhangjiagang Guangda Special Material Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Zhangjiagang Guangda Special Material Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Zhangjiagang Guangda Special Material Co (SHSE:688186) Business Description

Zhangjiagang Guangda Special Material Co logo
Traded in Other Exchanges
N/A
Address
Fenghuang Town, Langanqiao Development Zone, Jiangsu Province, Anqing Village, Zhangjiagang, CHN, 215614
Zhangjiagang Guangda Special Material Co Ltd is engaged in production and sale of special steel materials. The company's products include various types of castings and forgings and machine accessories: such as forged round bar, die and tool steel, wind power spindle, heavy load gear motor shaft, high pressure boiler pipe, roller, oil mechanical driller, tube-shaped forging, die block, ring forging, disk-shaped forging and all kinds of abnormal forgings. Its products are used in various industries such as wind power, chemical engineering, machinery, automobile, vessel, power station, metallurgy, mining and petrochemical.

Zhangjiagang Guangda Special Material Co (SHSE:688186) Headlines

No Headlines