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Pengdu Agriculture & Animal Husbandry Co (SZSE:002505) Financial Strength : 3 (As of Dec. 2023)


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What is Pengdu Agriculture & Animal Husbandry Co Financial Strength?

Pengdu Agriculture & Animal Husbandry 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:

Pengdu Agriculture & Animal Husbandry 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.

Pengdu Agriculture & Animal Husbandry Co did not have earnings to cover the interest expense. Pengdu Agriculture & Animal Husbandry Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.25. As of today, Pengdu Agriculture & Animal Husbandry Co's Altman Z-Score is 1.46.


Competitive Comparison of Pengdu Agriculture & Animal Husbandry Co's Financial Strength

For the Farm Products subindustry, Pengdu Agriculture & Animal Husbandry 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.


Pengdu Agriculture & Animal Husbandry Co's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Pengdu Agriculture & Animal Husbandry Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Pengdu Agriculture & Animal Husbandry Co's Financial Strength falls into.



Pengdu Agriculture & Animal Husbandry 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:

Pengdu Agriculture & Animal Husbandry Co's Interest Expense for the months ended in Dec. 2023 was ¥-176 Mil. Its Operating Income for the months ended in Dec. 2023 was ¥-99 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ¥1,344 Mil.

Pengdu Agriculture & Animal Husbandry Co's Interest Coverage for the quarter that ended in Dec. 2023 is

Pengdu Agriculture & Animal Husbandry Co did not have earnings to cover the interest expense.

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

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

Pengdu Agriculture & Animal Husbandry 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
=(2395.041 + 1343.939) / 14876.208
=0.25

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.

Pengdu Agriculture & Animal Husbandry Co has a Z-score of 1.46, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.46 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.


Pengdu Agriculture & Animal Husbandry Co  (SZSE:002505) 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.

Pengdu Agriculture & Animal Husbandry 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.


Pengdu Agriculture & Animal Husbandry Co Financial Strength Related Terms

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Pengdu Agriculture & Animal Husbandry Co (SZSE:002505) Business Description

Traded in Other Exchanges
N/A
Address
Lane 2188, Hongqiao Road, No. 25, Hongqiao Business Villa, Changning District, Shanghai, CHN, 200336
Pengdu Agriculture & Animal Husbandry Co Ltd is a global farming and food company. The company operates through various business divisions: grain trade, dairy, food distribution, beef cattle, live pigs. Its business has spread all over China, Brazil, New Zealand, Japan, Myanmar, Laos, and many other countries. In addition, the company has controlled approximately 29 original ecological farms in New Zealand, formed all kinds of dairy products under its own brand Theland.

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