What is Shenzhen Energy Group Co Financial Strength?
Shenzhen Energy Group 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:
Shenzhen Energy Group 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.
Shenzhen Energy Group Co's Interest Coverage for the quarter that ended in Mar. 2024 was 3.13.
Shenzhen Energy Group Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.73.
As of today, Shenzhen Energy Group Co's Altman Z-Score is 0.76.
Competitive Comparison of Shenzhen Energy Group Co's Financial Strength
For the Utilities - Diversified subindustry, Shenzhen Energy Group 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.
Shenzhen Energy Group Co's Financial Strength Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Shenzhen Energy Group Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Shenzhen Energy Group Co's Financial Strength falls into.
Shenzhen Energy Group 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:
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.
Shenzhen Energy Group Co has a Z-score of 0.76, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.76 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.
Shenzhen Energy Group Co (SZSE:000027) 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.
Shenzhen Energy Group 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.
Shenzhen Energy Group Co Financial Strength Related Terms
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Shenzhen Energy Group Co (SZSE:000027) Business Description
Shenzhen Energy Group Co Ltd is a China-based company primarily engaged in the business of development, procurement, and marketing of various conventional and new energy sources. The company is an integrated energy enterprise, with its business covering the sectors of electric power, solid waste treatment, and natural gas supply. It has the business presence in China and international countries. The businesses of the company are clean coal-fired power generation, gas power generation, renewable energy generation, environmental protection industry and urban gas. Its renewable energy generation business covers wind power, photovoltaic, hydropower and waste power.
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