GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Levima Advanced Materials Corp (SZSE:003022) » Definitions » Financial Strength

Levima Advanced Materials (SZSE:003022) Financial Strength : 3 (As of Mar. 2024)


View and export this data going back to 2020. Start your Free Trial

What is Levima Advanced Materials Financial Strength?

Levima Advanced Materials 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:

Levima Advanced Materials Corp 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.

Levima Advanced Materials's Interest Coverage for the quarter that ended in Mar. 2024 was 2.85. Levima Advanced Materials's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.46. As of today, Levima Advanced Materials's Altman Z-Score is 1.93.


Competitive Comparison of Levima Advanced Materials's Financial Strength

For the Chemicals subindustry, Levima Advanced Materials'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.


Levima Advanced Materials's Financial Strength Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Levima Advanced Materials's Financial Strength distribution charts can be found below:

* The bar in red indicates where Levima Advanced Materials's Financial Strength falls into.



Levima Advanced Materials 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:

Levima Advanced Materials's Interest Expense for the months ended in Mar. 2024 was ¥-34 Mil. Its Operating Income for the months ended in Mar. 2024 was ¥98 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ¥4,276 Mil.

Levima Advanced Materials'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*98.085/-34.425
=2.85

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

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

Levima Advanced Materials'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
=(4382.771 + 4275.928) / 5948.56
=1.46

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.

Levima Advanced Materials has a Z-score of 1.93, indicating it is in Grey Zones. This implies that Levima Advanced Materials 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 1.93 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.


Levima Advanced Materials  (SZSE:003022) 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.

Levima Advanced Materials 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.


Levima Advanced Materials Financial Strength Related Terms

Thank you for viewing the detailed overview of Levima Advanced Materials's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Levima Advanced Materials (SZSE:003022) Business Description

Traded in Other Exchanges
N/A
Address
Resident of Mushi Town, Shandong Province (Mushi Industrial Park), Tengzhou, CHN, 277500
Levima Advanced Materials Corp is a producer and supplier of high-end advanced material products and solutions. Levima advanced material product mainly include Ethylene-vinyl acetate, polypropylene, ethylene oxide and ethylene oxide derivative, which are widely used in photovoltaic, cable, shoe material, plastic, daily chemical, textile, construction, road, bridge, automobile, leather, coating, agricultural chemical, metal processing and other fields.

Levima Advanced Materials (SZSE:003022) Headlines

No Headlines