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Seoul Semiconductor Co (XKRX:046890) Financial Strength : 5 (As of Dec. 2023)


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What is Seoul Semiconductor Co Financial Strength?

Seoul Semiconductor Co has the Financial Strength Rank of 5.

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.

Seoul Semiconductor Co did not have earnings to cover the interest expense. Seoul Semiconductor Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.20. As of today, Seoul Semiconductor Co's Altman Z-Score is 1.86.


Competitive Comparison of Seoul Semiconductor Co's Financial Strength

For the Semiconductors subindustry, Seoul Semiconductor 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.


Seoul Semiconductor Co's Financial Strength Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Seoul Semiconductor Co's Financial Strength distribution charts can be found below:

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



Seoul Semiconductor 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:

Seoul Semiconductor Co's Interest Expense for the months ended in Dec. 2023 was ₩-2,884 Mil. Its Operating Income for the months ended in Dec. 2023 was ₩-19,289 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₩117,936 Mil.

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

Seoul Semiconductor 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.

Seoul Semiconductor 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
=(98494.301 + 117935.964) / 1082579.432
=0.20

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.

Seoul Semiconductor Co has a Z-score of 1.86, indicating it is in Grey Zones. This implies that Seoul Semiconductor Co 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 1.86 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.


Seoul Semiconductor Co  (XKRX:046890) 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.

Seoul Semiconductor Co has the Financial Strength Rank of 5.


Seoul Semiconductor Co Financial Strength Related Terms

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Seoul Semiconductor Co (XKRX:046890) Business Description

Traded in Other Exchanges
N/A
Address
148-29 Gasan-dong, Geumcheon-gu, Seoul, KOR, 153-023
Seoul Semiconductor Co Ltd is a company catering to the semiconductor industry in Korea. It manufactures and markets light emitting diodes used in notice boards and billboards; customized modules used in lightings and home appliances, and sensors used in printers and vending machines. Its array of products includes side view LEDs, top view LEDs, chip LEDs, lamp LEDs and high flux LEDs. The company has markets located at home and abroad.

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