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Fuan Pharmaceutical (Group) Co (SZSE:300194) Financial Strength : 6 (As of Mar. 2024)


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What is Fuan Pharmaceutical (Group) Co Financial Strength?

Fuan Pharmaceutical (Group) Co has the Financial Strength Rank of 6.

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.

Fuan Pharmaceutical (Group) Co's Interest Coverage for the quarter that ended in Mar. 2024 was 16.68. Fuan Pharmaceutical (Group) Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.24. As of today, Fuan Pharmaceutical (Group) Co's Altman Z-Score is 2.71.


Competitive Comparison of Fuan Pharmaceutical (Group) Co's Financial Strength

For the Drug Manufacturers - Specialty & Generic subindustry, Fuan Pharmaceutical (Group) 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.


Fuan Pharmaceutical (Group) Co's Financial Strength Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Fuan Pharmaceutical (Group) Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Fuan Pharmaceutical (Group) Co's Financial Strength falls into.



Fuan Pharmaceutical (Group) 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:

Fuan Pharmaceutical (Group) Co's Interest Expense for the months ended in Mar. 2024 was ¥-7 Mil. Its Operating Income for the months ended in Mar. 2024 was ¥122 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ¥384 Mil.

Fuan Pharmaceutical (Group) Co's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*122.351/-7.333
=16.68

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

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

Fuan Pharmaceutical (Group) Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(381.237 + 383.589) / 3237.6
=0.24

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.

Fuan Pharmaceutical (Group) Co has a Z-score of 2.71, indicating it is in Grey Zones. This implies that Fuan Pharmaceutical (Group) Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.71 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Fuan Pharmaceutical (Group) Co  (SZSE:300194) 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.

Fuan Pharmaceutical (Group) Co has the Financial Strength Rank of 6.


Fuan Pharmaceutical (Group) Co Financial Strength Related Terms

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Fuan Pharmaceutical (Group) Co (SZSE:300194) Business Description

Traded in Other Exchanges
N/A
Address
No.1 Huanan 1 Road, Changshou District, Chongqing, CHN, 401254
Fuan Pharmaceutical (Group) Co Ltd is mainly engaged in the production and sales of bulk drugs and preparations. The company mainly deals with anti-infective, anti-tumor, mental nervous system, cardiovascular and cerebrovascular, digestive system, endocrine and metabolic, bone and muscle systems. Its products include penicillin and cephalosporins.
Executives
Wu Xiong Hui Executives
Huang Tao Directors, executives
Feng Jing Executives
Yu Xue Song Directors, executives
Hong Rong Chuan Executives
Tang Qin Secretary, Director
Wang Tian Xiang Director
Sun Yong Ping Executives
Jiang Chen Directors, executives
Huang Dao Fei Supervisors
Wen Min Director
Zhou Xu Dong Executives
Zhou Zhong Sheng Supervisors

Fuan Pharmaceutical (Group) Co (SZSE:300194) Headlines

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