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Chori Co (TSE:8014) Financial Strength : 7 (As of Dec. 2023)


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What is Chori Co Financial Strength?

Chori Co has the Financial Strength Rank of 7.

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.

Chori Co's Interest Coverage for the quarter that ended in Dec. 2023 was 19.58. Chori Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.01. As of today, Chori Co's Altman Z-Score is 4.19.


Competitive Comparison of Chori Co's Financial Strength

For the Conglomerates subindustry, Chori 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.


Chori Co's Financial Strength Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Chori Co's Financial Strength distribution charts can be found below:

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



Chori 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:

Chori Co's Interest Expense for the months ended in Dec. 2023 was 円-211 Mil. Its Operating Income for the months ended in Dec. 2023 was 円4,132 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円47 Mil.

Chori Co's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*4132/-211
=19.58

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

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

Chori 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
=(4000 + 47) / 321804
=0.01

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.

Chori Co has a Z-score of 4.19, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.19 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.


Chori Co  (TSE:8014) 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.

Chori Co has the Financial Strength Rank of 7.


Chori Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Chori Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Chori Co (TSE:8014) Business Description

Traded in Other Exchanges
N/A
Address
1-7-3 , Awajimachi, Chuo-ku, Osaka, JPN, 540-8603
Chori Co Ltd engages in textiles, chemicals, and machinery businesses. The textile business is engaged in weaving, knitting, dyeing and sewing. It sells polyester threads mainly for materials such as car seats, and handling fabrics centering on car seats and for apparels. Chemical business develops inorganic chemicals and mineral products for cosmetics, personal care and food additive applications. Machinery businesses export agricultural machinery, construction machinery, industrial equipment, and marine equipment. Chori has geographic operations in China, Japan, Europe, the United States, Hong Kong, and the Middle East.

Chori Co (TSE:8014) Headlines

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