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Hunan Resun Co (SZSE:001218) Financial Strength : 10 (As of Mar. 2025)


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What is Hunan Resun Co Financial Strength?

Hunan Resun Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Hunan Resun 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.

Hunan Resun Co's Interest Coverage for the quarter that ended in Mar. 2025 was 86.91. Hunan Resun Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.00. As of today, Hunan Resun Co's Altman Z-Score is 4.46.


Competitive Comparison of Hunan Resun Co's Financial Strength

For the Household & Personal Products subindustry, Hunan Resun 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.


Hunan Resun Co's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Hunan Resun Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Hunan Resun Co's Financial Strength falls into.


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Hunan Resun 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:

Hunan Resun Co's Interest Expense for the months ended in Mar. 2025 was ¥-0 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥24 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥2 Mil.

Hunan Resun 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*23.813/-0.274
=86.91

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. Hunan Resun 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.

Hunan Resun 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
=(0.803 + 1.553) / 4219.56
=0.00

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.

Hunan Resun Co has a Z-score of 4.46, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.46 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.


Hunan Resun Co  (SZSE:001218) 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.

Hunan Resun Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Hunan Resun Co Financial Strength Related Terms

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Hunan Resun Co Business Description

Traded in Other Exchanges
N/A
Address
No. 399, Shetang Road, Quantang Street, Changsha Economic and Technological Development Zone, Hunan Province, Changsha, CHN, 410100
Hunan Resun Co Ltd is engaged in the research and development, production, and sales of surfactants and detergents. The surfactant products produced and sold by the company include AES, LAS, K12, ammonium salts, AOS, alkanolamides, amino acids, and other series; and the detergent products include washing powder, liquid detergent, hotel detergents, etc. The detergent products include two models: own-brand production and operation and OEM. The own brands include Matou, Guanghui, Beihua, etc., and the brands involved in the OEM model include Tide, White Cat, and others. Maximum revenue for the company is generated from its surfactants business.
Executives
Zhang Li Xiang Supervisors

Hunan Resun Co Headlines

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