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China Qidian Guofeng Holdings (HKSE:01280) Financial Strength : 1 (As of Dec. 2023)


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What is China Qidian Guofeng Holdings Financial Strength?

China Qidian Guofeng Holdings has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. 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.

China Qidian Guofeng Holdings did not have earnings to cover the interest expense. China Qidian Guofeng Holdings's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.38. As of today, China Qidian Guofeng Holdings's Altman Z-Score is -8.85.


Competitive Comparison of China Qidian Guofeng Holdings's Financial Strength

For the Specialty Retail subindustry, China Qidian Guofeng Holdings'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.


China Qidian Guofeng Holdings's Financial Strength Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, China Qidian Guofeng Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where China Qidian Guofeng Holdings's Financial Strength falls into.



China Qidian Guofeng Holdings 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:

China Qidian Guofeng Holdings's Interest Expense for the months ended in Dec. 2023 was HK$-10.3 Mil. Its Operating Income for the months ended in Dec. 2023 was HK$-20.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$527.8 Mil.

China Qidian Guofeng Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is

China Qidian Guofeng Holdings did not have earnings to cover the interest expense.

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

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

China Qidian Guofeng Holdings'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
=(11.412 + 527.758) / 391.74
=1.38

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.

China Qidian Guofeng Holdings has a Z-score of -8.85, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -8.85 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.


China Qidian Guofeng Holdings  (HKSE:01280) 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.

China Qidian Guofeng Holdings has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


China Qidian Guofeng Holdings Financial Strength Related Terms

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China Qidian Guofeng Holdings (HKSE:01280) Business Description

Traded in Other Exchanges
N/A
Address
No. 539 Wenchang Zhong Road, 6th Floor, Huiyin Building, Jiangsu Province, Yangzhou, CHN
China Qidian Guofeng Holdings Ltd Formerly Qidian International Co Ltd is an investment holding company. It is engaged in the retail of household appliances, mobile phones, computers, imported and general merchandise, and the provision of maintenance and installation services for household appliances in the PRC. The operating segments of the group are Traditional business; New retail business and All other segments. Its Traditional business includes the results from sales of household appliances, mobile phones, and computers. New retail business includes the results from sales of imported and general merchandise. All other segments include the results from rendering maintenance and installation services. The company generates prime revenue from the Traditional business segment.

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