What is Sumitomo Chemical Co Financial Strength?
Sumitomo Chemical 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:
Sumitomo Chemical 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.
Sumitomo Chemical Co did not have earnings to cover the interest expense.
Sumitomo Chemical Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.67.
As of today, Sumitomo Chemical Co's Altman Z-Score is 0.90.
Competitive Comparison of Sumitomo Chemical Co's Financial Strength
For the Chemicals subindustry, Sumitomo Chemical 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.
Sumitomo Chemical Co's Financial Strength Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sumitomo Chemical Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Sumitomo Chemical Co's Financial Strength falls into.
Sumitomo Chemical 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:
Sumitomo Chemical Co's Interest Expense for the
months ended in Dec. 2023 was 円-36,769 Mil. Its Operating Income for the
months ended in Dec. 2023 was 円-13,586 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円996,769 Mil.
Sumitomo Chemical Co's Interest Coverage for the quarter that ended in Dec. 2023 is
| Sumitomo Chemical Co did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Sumitomo Chemical Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 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.
Sumitomo Chemical Co has a Z-score of 0.90, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.9 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.
Sumitomo Chemical Co (TSE:4005) Business Description
Traded in Other Exchanges
Address
27-1, Shinkawa 2-chome, Chuo-ku, Tokyo, JPN, 104-8260
Sumitomo Chemical Co Ltd manufactures and sells chemicals and chemical-based products. The firm is organized into six segments by product type. The petrochemicals and plastics segment, which generates more revenue than any other segment, sells multiple products including propylene and polypropylene used in automobile seat cushions and interior panels. The pharmaceutical segment sells medicine to treat diabetes, neurology, cancer, and infectious diseases. The IT-related chemicals segment sells compound semiconductors and polarizing films used in LCD displays for TVs and smartphones. The other three segments are health and crop sciences; energy and functional materials; and "others." The majority of revenue comes from Japan and China.
Sumitomo Chemical Co (TSE:4005) Headlines
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