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Greentown Management Holdings Co (Greentown Management Holdings Co) Financial Strength : 10 (As of Dec. 2023)


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What is Greentown Management Holdings Co Financial Strength?

Greentown Management Holdings Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Greentown Management Holdings Co Ltd shows strong financial strength.

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.

Greentown Management Holdings Co's Interest Coverage for the quarter that ended in Dec. 2023 was 211.36. Greentown Management Holdings Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00. As of today, Greentown Management Holdings Co's Altman Z-Score is 4.77.


Competitive Comparison of Greentown Management Holdings Co's Financial Strength

For the Real Estate Services subindustry, Greentown Management 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.


Greentown Management Holdings Co's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Greentown Management Holdings Co's Financial Strength distribution charts can be found below:

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



Greentown Management 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:

Greentown Management Holdings Co's Interest Expense for the months ended in Dec. 2023 was $-0.4 Mil. Its Operating Income for the months ended in Dec. 2023 was $81.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0.5 Mil.

Greentown Management Holdings 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*80.952/-0.383
=211.36

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Greentown Management Holdings Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Greentown Management Holdings 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
=(0.593 + 0.468) / 491.138
=0.00

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.

Greentown Management Holdings Co has a Z-score of 4.77, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.77 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.


Greentown Management Holdings Co  (OTCPK:GRMHF) 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.

Greentown Management Holdings Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Greentown Management Holdings Co Financial Strength Related Terms

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Greentown Management Holdings Co (Greentown Management Holdings Co) Business Description

Traded in Other Exchanges
Address
767 Wen Yi West Road, Xixi International, 9th Floor, Block C, Xihu District, Zhejiang, Hangzhou, CHN
Greentown Management Holdings Co Ltd is the project management company in the PRC. The company's operating segments are Commercial Project Management, Government Project Management, and Other Services. The firm generates a majority of its revenue from Commercial project management which is engaged in providing property development management service to project owner; Governmental project management provides property development management service to the government on resettlement housing property development projects and public infrastructure.

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