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Sinoma Science & Technology Co (SZSE:002080) Financial Strength : 3 (As of Mar. 2024)


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What is Sinoma Science & Technology Co Financial Strength?

Sinoma Science & Technology 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:

Sinoma Science & Technology 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.

Sinoma Science & Technology Co's Interest Coverage for the quarter that ended in Mar. 2024 was 4.37. Sinoma Science & Technology Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.85. As of today, Sinoma Science & Technology Co's Altman Z-Score is 1.47.


Competitive Comparison of Sinoma Science & Technology Co's Financial Strength

For the Chemicals subindustry, Sinoma Science & Technology 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.


Sinoma Science & Technology Co's Financial Strength Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sinoma Science & Technology Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sinoma Science & Technology Co's Financial Strength falls into.



Sinoma Science & Technology 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:

Sinoma Science & Technology Co's Interest Expense for the months ended in Mar. 2024 was ¥-104 Mil. Its Operating Income for the months ended in Mar. 2024 was ¥455 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ¥10,872 Mil.

Sinoma Science & Technology Co'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*454.898/-104.008
=4.37

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

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

Sinoma Science & Technology Co'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
=(4277.195 + 10872.282) / 17721.272
=0.85

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.

Sinoma Science & Technology Co has a Z-score of 1.47, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.47 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.


Sinoma Science & Technology Co  (SZSE:002080) 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.

Sinoma Science & Technology 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.


Sinoma Science & Technology Co Financial Strength Related Terms

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Sinoma Science & Technology Co (SZSE:002080) Business Description

Traded in Other Exchanges
N/A
Address
Tongtian Road, No. 99, Science Park, Jiangsu Province,, Jiangning, CHN, 100097
Sinoma Science & Technology Co Ltd is a China-based company engages in the research, design, manufacture, and sale of special fiber composite materials. Its product and services include Composite wind Power blades, Fiberglass and Products, Lithium Battery Separator, High-pressure Gas Cylinders, Filtration and Separation Material, Special Fibers and Composites and Engineering technology and Equipment.

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