What is Gotion High-tech Co Financial Strength?
Gotion High-tech Co has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Gotion High-tech 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.
Gotion High-tech Co's Interest Coverage for the quarter that ended in Mar. 2024 was 1.21.
Gotion High-tech Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.43.
As of today, Gotion High-tech Co's Altman Z-Score is 0.72.
Competitive Comparison of Gotion High-tech Co's Financial Strength
For the Electrical Equipment & Parts subindustry, Gotion High-tech 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.
Gotion High-tech Co's Financial Strength Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gotion High-tech Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Gotion High-tech Co's Financial Strength falls into.
Gotion High-tech 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:
Gotion High-tech Co's Interest Expense for the
months ended in Mar. 2024 was ¥-352 Mil. Its Operating Income for the
months ended in Mar. 2024 was ¥425 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ¥21,006 Mil.
Gotion High-tech Co's Interest Coverage for the quarter that ended in Mar. 2024 is
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. Gotion High-tech Co Ltd interest coverage is 1.56, which is low.
2. Debt to revenue ratio. The lower, the better.
Gotion High-tech Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is
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.
Gotion High-tech Co has a Z-score of 0.72, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.72 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.
Gotion High-tech Co (SZSE:002074) Business Description
Traded in Other Exchanges
N/A
Address
No. 599 Daihe Road, Xinzhan District, Hefei, CHN, 230012
Established in 2006 in Hefei, Anhui province, Gotion High-tech, is one of the first enterprises engaged in research, production, and sales of rechargeable lithium-ion batteries for NEVs in China. Its main products include lithium iron phosphate materials and batteries, ternary batteries, battery packs, and energy storage batteries. The products are widely used in new energy passenger vehicles, commercial vehicles, energy storage power plants, communication base stations, and so on. Gotion ranked eighth among global EV battery companies with 3% market share in 2022 in terms of installed capacity, and fourth in China with 5% market share. The company is 25%-owned by Volkswagen Group with Chairman Li Zhen holding around 7%.
Gotion High-tech Co (SZSE:002074) Headlines
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