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Soft-World International (ROCO:5478) Financial Strength : 8 (As of Mar. 2024)


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What is Soft-World International Financial Strength?

Soft-World International has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Soft-World International Corp 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.

Soft-World International's Interest Coverage for the quarter that ended in Mar. 2024 was 1,310.91. Soft-World International's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.01. As of today, Soft-World International's Altman Z-Score is 2.09.


Competitive Comparison of Soft-World International's Financial Strength

For the Electronic Gaming & Multimedia subindustry, Soft-World International'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.


Soft-World International's Financial Strength Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Soft-World International's Financial Strength distribution charts can be found below:

* The bar in red indicates where Soft-World International's Financial Strength falls into.



Soft-World International 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:

Soft-World International's Interest Expense for the months ended in Mar. 2024 was NT$-0 Mil. Its Operating Income for the months ended in Mar. 2024 was NT$350 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was NT$12 Mil.

Soft-World International's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*350.014/-0.267
=1,310.91

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. Soft-World International Corp has enough cash to cover all of its debt. Its financial situation is stable.

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

Soft-World International's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(36.214 + 12.194) / 6898.528
=0.01

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.

Soft-World International has a Z-score of 2.09, indicating it is in Grey Zones. This implies that Soft-World International 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 2.09 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.


Soft-World International  (ROCO:5478) 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.

Soft-World International has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Soft-World International Financial Strength Related Terms

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Soft-World International (ROCO:5478) Business Description

Traded in Other Exchanges
N/A
Address
No. 61, Minzhuang Road, 13th floor, Chianjen Chiu, Kaohsiung, TWN, 806
Soft-World International Corp is engaged in the production, sales and provides agency services of entertainment and commercial software; editing, printing and publishing of game magazines; commercial advertising services; and purchase and sale of entertainment products and accessories of the game software. Its segments include Soft-World International Corporation; Chinese Gamer International Corporation; Game Flier International Corporation; Neweb Technologies; Efun Corporation; and Others.

Soft-World International (ROCO:5478) Headlines

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