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Chugokukogyo Co (TSE:5974) Financial Strength : 4 (As of Dec. 2023)


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What is Chugokukogyo Co Financial Strength?

Chugokukogyo Co has the Financial Strength Rank of 4.

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.

Chugokukogyo Co's Interest Coverage for the quarter that ended in Dec. 2023 was 135.00. Chugokukogyo Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.13. As of today, Chugokukogyo Co's Altman Z-Score is 1.61.


Competitive Comparison of Chugokukogyo Co's Financial Strength

For the Utilities - Regulated Gas subindustry, Chugokukogyo 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.


Chugokukogyo Co's Financial Strength Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Chugokukogyo Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Chugokukogyo Co's Financial Strength falls into.



Chugokukogyo 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:

Chugokukogyo Co's Interest Expense for the months ended in Dec. 2023 was 円-2 Mil. Its Operating Income for the months ended in Dec. 2023 was 円270 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円632 Mil.

Chugokukogyo Co's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*270/-2
=135.00

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

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

Chugokukogyo Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1653 + 632) / 17208
=0.13

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.

Chugokukogyo Co has a Z-score of 1.61, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.61 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.


Chugokukogyo Co  (TSE:5974) 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.

Chugokukogyo Co has the Financial Strength Rank of 4.


Chugokukogyo Co Financial Strength Related Terms

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Chugokukogyo Co (TSE:5974) Business Description

Traded in Other Exchanges
N/A
Address
1-3-1, Hironada, Kure, JPN, 737-0192
Chugokukogyo Co Ltd manufactures and sells LP gas containers, storage tanks, and bulk storage tank; and designs, constructs, and inspects LP gas plants. It is also engaged in the manufacturing of iron structure products; FRP feed tank silage silos; FRP pharmaceutical tanks and covers; FRP automotive parts; and livestock products.

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