What is Guangdong Leadyo IC Testing Co Financial Strength?
Guangdong Leadyo IC Testing Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Guangdong Leadyo IC Testing Co Ltd displays poor financial strength. 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.
Guangdong Leadyo IC Testing Co's Interest Coverage for the quarter that ended in Mar. 2024 was 0.66.
Guangdong Leadyo IC Testing Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.51.
As of today, Guangdong Leadyo IC Testing Co's Altman Z-Score is 2.15.
Competitive Comparison of Guangdong Leadyo IC Testing Co's Financial Strength
For the Semiconductors subindustry, Guangdong Leadyo IC Testing 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.
Guangdong Leadyo IC Testing Co's Financial Strength Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Guangdong Leadyo IC Testing Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Guangdong Leadyo IC Testing Co's Financial Strength falls into.
Guangdong Leadyo IC Testing 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.
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:
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Guangdong Leadyo IC Testing Co Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
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.
Guangdong Leadyo IC Testing Co has a Z-score of 2.15, indicating it is in Grey Zones. This implies that Guangdong Leadyo IC Testing Co 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 2.15 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.
Guangdong Leadyo IC Testing Co (SHSE:688135) 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.
Guangdong Leadyo IC Testing Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Guangdong Leadyo IC Testing Co Financial Strength Related Terms
Thank you for viewing the detailed overview of Guangdong Leadyo IC Testing Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Guangdong Leadyo IC Testing Co (SHSE:688135) Business Description
Guangdong Leadyo IC Testing Co Ltd is engaged in integrated circuit testing program development, 12-inch and 8-inch wafer testing services, finished chip testing services, and supporting services related to integrated circuit testing. It specializes in the semiconductor back-end processing step including the manufacture of integrated circuits of wafer testing, wafer thinning, wafer cutting, product testing and IC taping one-stop service, IC testing and provide software development, chip testing analysis, Load Board MPW production and engineering validation and Probe Card batch production, and other related services.
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