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Wangsu Science & Technology Co (SZSE:300017) Financial Strength : 9 (As of Mar. 2025)


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What is Wangsu Science & Technology Co Financial Strength?

Wangsu Science & Technology Co has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Wangsu Science & Technology 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.

Wangsu Science & Technology Co's Interest Coverage for the quarter that ended in Mar. 2025 was 41.55. Wangsu Science & Technology Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.20. As of today, Wangsu Science & Technology Co's Altman Z-Score is 8.69.


Competitive Comparison of Wangsu Science & Technology Co's Financial Strength

For the Software - Infrastructure subindustry, Wangsu Science & Technology 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.


Wangsu Science & Technology Co's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Wangsu Science & Technology Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Wangsu Science & Technology Co's Financial Strength falls into.


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Wangsu Science & Technology 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:

Wangsu Science & Technology Co's Interest Expense for the months ended in Mar. 2025 was ¥-4 Mil. Its Operating Income for the months ended in Mar. 2025 was ¥148 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ¥22 Mil.

Wangsu Science & Technology 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*148.087/-3.564
=41.55

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. Wangsu Science & Technology 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.

Wangsu Science & Technology 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
=(949.684 + 22.04) / 4939.98
=0.20

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.

Wangsu Science & Technology Co has a Z-score of 8.69, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 8.69 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.


Wangsu Science & Technology Co  (SZSE:300017) 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.

Wangsu Science & Technology Co has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Wangsu Science & Technology Co Financial Strength Related Terms

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Wangsu Science & Technology Co Business Description

Traded in Other Exchanges
N/A
Address
Jiading Ring Road, No. 200, Shanghai, CHN, 200030
Wangsu Science & Technology Co Ltd is a China-based company engaged in the provision of telecommunication value-added services. It is mainly engaged in the provision of a content delivery network (CDN) services, Internet data center (IDC) services, and cloud service integrated solutions. The company operates its business in domestic and overseas markets.
Executives
Liu Cheng Yan Director
Jiang Wei Executives
Huang Sha Lin Executives
Li Bo Yang Executives
Zhou Li Ping Directors, Directors, and Executives
Li Dong Executives
Xu Ming Wei Supervisors
Zhang Hai Yan Supervisors
Wei Jing Jing Securities Affairs Representative
Chu Min Jian Executives
Xiao Qian Executives
Liu Hong Tao Executives
Lu Qing Hui Executives
Yan Yong Chun Director
Li Zhi Ping Independent director

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