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Jiangsu Yanghe Distillery Co (SZSE:002304) Financial Strength : 10 (As of Mar. 2025)


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What is Jiangsu Yanghe Distillery Co Financial Strength?

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

Good Sign:

Jiangsu Yanghe Distillery 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.

Jiangsu Yanghe Distillery Co's Interest Coverage for the quarter that ended in Mar. 2025 was 6,390.46. Jiangsu Yanghe Distillery Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.00. As of today, Jiangsu Yanghe Distillery Co's Altman Z-Score is 7.47.


Competitive Comparison of Jiangsu Yanghe Distillery Co's Financial Strength

For the Beverages - Wineries & Distilleries subindustry, Jiangsu Yanghe Distillery 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.


Jiangsu Yanghe Distillery Co's Financial Strength Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Jiangsu Yanghe Distillery Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Jiangsu Yanghe Distillery Co's Financial Strength falls into.


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Jiangsu Yanghe Distillery 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:

Jiangsu Yanghe Distillery Co's Interest Expense for the months ended in Mar. 2025 was ¥-1 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥4,786 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥118 Mil.

Jiangsu Yanghe Distillery 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*4786.457/-0.749
=6,390.46

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. Jiangsu Yanghe Distillery 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.

Jiangsu Yanghe Distillery 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
=(32.55 + 117.979) / 44264.808
=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.

Jiangsu Yanghe Distillery Co has a Z-score of 7.47, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 7.47 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.


Jiangsu Yanghe Distillery Co  (SZSE:002304) 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.

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


Jiangsu Yanghe Distillery Co Financial Strength Related Terms

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Jiangsu Yanghe Distillery Co Business Description

Traded in Other Exchanges
N/A
Address
No. 118 Middle Avenue, Yanghe Town, Jiangsu Province, Suqian, CHN, 223800
Jiangsu Yanghe Brewery, founded in 2002, manufactures and markets baijiu (a distilled Chinese liquor) under the Yanghe, Shuanggou, and Sujiu brands. Yanghe's key products include the Blue Classic series, which accounted for about 80% of total sales, such as premium Dream Blue, mid- to high-end Sky Blue, and mass-market Ocean Blue. The company achieved revenue of CNY 29 billion in 2024, with more than half of sales from the non-Jiangsu market, leveraging its more than 8,800 distributors across China.
Executives
Zheng Bu Jun Executives
Wang Kai Director
Cong Xue Nian Directors, Directors, and Executives
Zhou Xin Hu Directors, executives
Zhu Wei Executives
Wang Yao Director
Zhou Wen Qi Supervisors
Han Feng Director
Zan Rui Lin Director
Feng Pan Tai Supervisors
Chen Tai Qing Supervisors
Zhu Guang Sheng Directors, executives
Zan Sheng Da Director
Gao Xue Fei Supervisors
Zhang Yu Bai Directors, executives

Jiangsu Yanghe Distillery Co Headlines

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