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Fu Shou Yuan International Group (HKSE:01448) Financial Strength : 9 (As of Dec. 2023)


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What is Fu Shou Yuan International Group Financial Strength?

Fu Shou Yuan International Group has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Fu Shou Yuan International Group 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.

Fu Shou Yuan International Group's Interest Coverage for the quarter that ended in Dec. 2023 was 108.42. Fu Shou Yuan International Group's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.13. As of today, Fu Shou Yuan International Group's Altman Z-Score is 5.26.


Competitive Comparison of Fu Shou Yuan International Group's Financial Strength

For the Personal Services subindustry, Fu Shou Yuan International Group'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.


Fu Shou Yuan International Group's Financial Strength Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Fu Shou Yuan International Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Fu Shou Yuan International Group's Financial Strength falls into.



Fu Shou Yuan International Group 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:

Fu Shou Yuan International Group's Interest Expense for the months ended in Dec. 2023 was HK$-5 Mil. Its Operating Income for the months ended in Dec. 2023 was HK$569 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$32 Mil.

Fu Shou Yuan International Group'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*568.962/-5.248
=108.42

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. Fu Shou Yuan International Group Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Fu Shou Yuan International Group'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
=(276.282 + 31.955) / 2413.942
=0.13

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.

Fu Shou Yuan International Group has a Z-score of 5.26, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.26 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.


Fu Shou Yuan International Group  (HKSE:01448) 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.

Fu Shou Yuan International Group has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Fu Shou Yuan International Group Financial Strength Related Terms

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Fu Shou Yuan International Group (HKSE:01448) Business Description

Traded in Other Exchanges
Address
No. 88 Cao Xi Road North, Room 1306, Sheng Ai Building, Xuhui District, Shanghai, CHN, 200030
Fu Shou Yuan International Group Ltd is a personal services company that provides burial, funeral, and auxiliary services throughout China. The company derives the vast majority of its revenue from the provision of burial services. Within this business activity, Fu Shou Yuan generates most of its revenue from the sale of primarily customized, artistic, and traditional burial plots. The company also provides cemetery maintenance services for its portfolio of cemeteries within its burial services segment. The majority of Fu Shou Yuan's sales come from the Shanghai region, while the Liaoning province also contributes a sizable percentage of total revenue. Fu Shou Yuan's other divisions are involved in the acquisition and operation of funeral homes and the building of cremation machines.

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