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XJ International Holdings Co (HKSE:01765) Financial Strength : 4 (As of Aug. 2023)


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What is XJ International Holdings Co Financial Strength?

XJ International Holdings Co has the Financial Strength Rank of 4.

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.

XJ International Holdings Co's Interest Coverage for the quarter that ended in Aug. 2023 was 1.76. XJ International Holdings Co's debt to revenue ratio for the quarter that ended in Aug. 2023 was 1.79. As of today, XJ International Holdings Co's Altman Z-Score is 0.18.


Competitive Comparison of XJ International Holdings Co's Financial Strength

For the Education & Training Services subindustry, XJ International Holdings 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.


XJ International Holdings Co's Financial Strength Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, XJ International Holdings Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where XJ International Holdings Co's Financial Strength falls into.



XJ International Holdings 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:

XJ International Holdings Co's Interest Expense for the months ended in Aug. 2023 was HK$-192 Mil. Its Operating Income for the months ended in Aug. 2023 was HK$338 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Aug. 2023 was HK$2,107 Mil.

XJ International Holdings Co's Interest Coverage for the quarter that ended in Aug. 2023 is

Interest Coverage=-1*Operating Income (Q: Aug. 2023 )/Interest Expense (Q: Aug. 2023 )
=-1*337.594/-192.347
=1.76

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

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

XJ International Holdings Co's Debt to Revenue Ratio for the quarter that ended in Aug. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Aug. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4254.351 + 2106.92) / 3556.096
=1.79

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.

XJ International Holdings Co has a Z-score of 0.18, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.18 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.


XJ International Holdings Co  (HKSE:01765) 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.

XJ International Holdings Co has the Financial Strength Rank of 4.


XJ International Holdings Co Financial Strength Related Terms

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XJ International Holdings Co (HKSE:01765) Business Description

Traded in Other Exchanges
Address
No. 2000 Xi Qu Avenue, Sichuan TOP IT Vocational Institute, 5th Floor, Administrative Building, Pidu District, Chengdu, CHN, 610091
Hope Education Group Co Ltd is an investment holding company engaged in providing educational services. The company operates higher educational schools which include universities and junior colleges. Some of its colleges are Southwest Jiaotong University Hope Colleges, Business College of Guizhou University of Finance and Economics, Sichuan TOP IT Vocational Institute, and One Technical College among others. Its operating segments are the Domestic education which is the key revenue generating segment, Global education segment and others. The company generates its revenue from tuition fees, boarding fees, sales of books and daily necessities, and others.
Executives
Cantrust (far East) Limited 2301 Trustee
Maysunshine Holdings Limited 2201 Interest of corporation controlled by you
Wang Huiwu 2101 Beneficial owner
Chen Yuxin 2201 Interest of corporation controlled by you
Cheng Du Hua Xi Xi Wang Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Si Chuan Te Qu Tou Zi Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Si Chuan Pu Hua Nong Ye Ke Ji Fa Zhan You Xian Gong Si 2201 Interest of corporation controlled by you
Shang Hai Yi Zeng Qi Ye Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Tequ Group A Limited 2201 Interest of corporation controlled by you
Maysunshine Limited 2201 Interest of corporation controlled by you
Hope Education Investment Limited 2101 Beneficial owner
Credit Suisse Trust Limited 2101 Beneficial owner
Zhao Guiqin 2201 Interest of corporation controlled by you
Zhang Qiang 2201 Interest of corporation controlled by you
Tequ Group (hong Kong) Company Limited 2201 Interest of corporation controlled by you

XJ International Holdings Co (HKSE:01765) Headlines

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