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Asustek Computer (TPE:2357) Financial Strength : 7 (As of Mar. 2025)


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What is Asustek Computer Financial Strength?

Asustek Computer has the Financial Strength Rank of 7.

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.

Asustek Computer's Interest Coverage for the quarter that ended in Mar. 2025 was 32.10. Asustek Computer's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.05. As of today, Asustek Computer's Altman Z-Score is 3.08.


Competitive Comparison of Asustek Computer's Financial Strength

For the Computer Hardware subindustry, Asustek Computer'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.


Asustek Computer's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Asustek Computer's Financial Strength distribution charts can be found below:

* The bar in red indicates where Asustek Computer's Financial Strength falls into.


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Asustek Computer 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:

Asustek Computer's Interest Expense for the months ended in Mar. 2025 was NT$-219 Mil. Its Operating Income for the months ended in Mar. 2025 was NT$7,039 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was NT$1,570 Mil.

Asustek Computer'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*7039.272/-219.279
=32.10

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

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

Asustek Computer'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
=(28851.532 + 1570.442) / 590772.844
=0.05

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.

Asustek Computer has a Z-score of 3.08, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.08 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.


Asustek Computer  (TPE:2357) 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.

Asustek Computer has the Financial Strength Rank of 7.


Asustek Computer Financial Strength Related Terms

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Asustek Computer Business Description

Traded in Other Exchanges
N/A
Address
No.15, Li-Te Road, Peitou, Taipei, TWN
Asustek Computer Inc is a computer hardware and electronics company producing and selling 3C products including PCs, mainboards other boards and cards, tablet PCs, smartphones, and other handheld devices, etc. The company operates in Taiwan, China, Singapore, Europe, the United States, and other countries. Its segment includes BC Brand and Others.

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