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HANIL FEED Co (XKRX:005860) Financial Strength : 7 (As of Mar. 2024)


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What is HANIL FEED Co Financial Strength?

HANIL FEED Co has the Financial Strength Rank of 7.

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.

HANIL FEED Co's Interest Coverage for the quarter that ended in Mar. 2024 was 10.44. HANIL FEED Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.14. As of today, HANIL FEED Co's Altman Z-Score is 6.35.


Competitive Comparison of HANIL FEED Co's Financial Strength

For the Packaged Foods subindustry, HANIL FEED 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.


HANIL FEED Co's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, HANIL FEED Co's Financial Strength distribution charts can be found below:

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



HANIL FEED 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:

HANIL FEED Co's Interest Expense for the months ended in Mar. 2024 was ₩-144 Mil. Its Operating Income for the months ended in Mar. 2024 was ₩1,499 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₩5,807 Mil.

HANIL FEED 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*1498.624/-143.533
=10.44

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

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

HANIL FEED 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
=(55746.514 + 5807.011) / 441717.208
=0.14

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.

HANIL FEED Co has a Z-score of 6.35, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.35 is strong.

* 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.


HANIL FEED Co  (XKRX:005860) 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.

HANIL FEED Co has the Financial Strength Rank of 7.


HANIL FEED Co Financial Strength Related Terms

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HANIL FEED Co (XKRX:005860) Business Description

Traded in Other Exchanges
N/A
Address
l 213 Hagal-Dong, keehung-Gu, Yongin-Si, Kyonggi, KOR, 449-900
HANIL FEED Co Ltd operates in the packaged foods industry in South Korea. The company is engaged in the manufacturing of livestock feeds and animal feeds. The products of the company are shelled corn, corn mix, and green CF.

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