GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » ZhongAn Online P&C Insurance Co Ltd (HKSE:06060) » Definitions » Financial Strength

ZhongAn Online P&C Insurance Co (HKSE:06060) Financial Strength : 5 (As of Dec. 2023)


View and export this data going back to 2017. Start your Free Trial

What is ZhongAn Online P&C Insurance Co Financial Strength?

ZhongAn Online P&C Insurance Co has the Financial Strength Rank of 5.

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.

ZhongAn Online P&C Insurance Co's Interest Coverage for the quarter that ended in Dec. 2023 was 17.20. ZhongAn Online P&C Insurance Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.23. Altman Z-Score does not apply to banks and insurance companies.


ZhongAn Online P&C Insurance 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:

ZhongAn Online P&C Insurance Co's Interest Expense for the months ended in Dec. 2023 was HK$-264 Mil. Its Operating Income for the months ended in Dec. 2023 was HK$0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$7,861 Mil.

ZhongAn Online P&C Insurance Co's Interest Coverage for the quarter that ended in Dec. 2023 is

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

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

ZhongAn Online P&C Insurance 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 + 7860.61) / 33494.616
=0.23

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


ZhongAn Online P&C Insurance Co  (HKSE:06060) 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.

ZhongAn Online P&C Insurance Co has the Financial Strength Rank of 5.


ZhongAn Online P&C Insurance Co Financial Strength Related Terms

Thank you for viewing the detailed overview of ZhongAn Online P&C Insurance Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


ZhongAn Online P&C Insurance Co (HKSE:06060) Business Description

Traded in Other Exchanges
Address
219 Yuanmingyuan Road, Shanghai, CHN
ZhongAn was founded by Ant Financial, Tencent, Ping An Insurance, and other well-known enterprises in 2013 and is headquartered in Shanghai. The company is the first internet-based insurance company in China. It provides online underwriting and claim services through the internet without any offline branches. ZhongAn was listed in September 2017 in Hong Kong. Besides the online insurance segment, the company operates technology and banking segments. Its insurance technology segment exports digital operating system, middle platforms, and industry models to licensed financial players both domestically and overseas. Its banking segment, through Hong Kong-based virtual bank ZA Bank, offers similar services as traditional offline banks but without an offline presence.