What is Sankei Chemical Co Financial Strength?
Sankei Chemical Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Sankei Chemical Co Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
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.
Sankei Chemical Co did not have earnings to cover the interest expense.
Sankei Chemical Co's debt to revenue ratio for the quarter that ended in Feb. 2024 was 0.47.
As of today, Sankei Chemical Co's Altman Z-Score is 1.84.
Competitive Comparison of Sankei Chemical Co's Financial Strength
For the Agricultural Inputs subindustry, Sankei Chemical 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.
Sankei Chemical Co's Financial Strength Distribution in the Agriculture Industry
For the Agriculture industry and Basic Materials sector, Sankei Chemical Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Sankei Chemical Co's Financial Strength falls into.
Sankei Chemical 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:
Sankei Chemical Co's Interest Expense for the
months ended in Feb. 2024 was 円-4 Mil. Its Operating Income for the
months ended in Feb. 2024 was 円-20 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was 円1,520 Mil.
Sankei Chemical Co's Interest Coverage for the quarter that ended in Feb. 2024 is
| Sankei Chemical Co did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Sankei Chemical Co Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
2. Debt to revenue ratio. The lower, the better.
Sankei Chemical Co's Debt to Revenue Ratio for the quarter that ended in Feb. 2024 is
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.
Sankei Chemical Co has a Z-score of 1.84, indicating it is in Grey Zones. This implies that Sankei Chemical 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 1.84 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.
Sankei Chemical Co (FSE:4995) Business Description
Traded in Other Exchanges
N/A
Address
9 Nanei 2-Chome, Kagoshima, JPN, 891-0122
Sankei Chemical Co Ltd engages in the manufacture and sale of agrochemicals and pesticides. It offers pest and weed control agents; pesticides for rice, fruit orchards, and horticultural fields; wood insecticides and fungicides; and other agricultural materials. The firm's products include insecticides, fungicides, insecticidal fungicides, pheromone drug herbicides, herbicides, spreading agents, soil fumigants, agricultural materials, pest control agents, and others.
Sankei Chemical Co (FSE:4995) Headlines
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