What is Sinopec Oilfield Service Financial Strength?
Sinopec Oilfield Service 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:
Sinopec Oilfield Service 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.
Sinopec Oilfield Service's Interest Coverage for the quarter that ended in Mar. 2024 was 2.34.
Sinopec Oilfield Service's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.29.
As of today, Sinopec Oilfield Service's Altman Z-Score is 0.58.
Competitive Comparison of Sinopec Oilfield Service's Financial Strength
For the Oil & Gas Drilling subindustry, Sinopec Oilfield Service'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.
Sinopec Oilfield Service's Financial Strength Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Sinopec Oilfield Service's Financial Strength distribution charts can be found below:
* The bar in red indicates where Sinopec Oilfield Service's Financial Strength falls into.
Sinopec Oilfield Service 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.
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:
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.
Sinopec Oilfield Service has a Z-score of 0.58, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.58 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.
Sinopec Oilfield Service (SHSE:600871) 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.
Sinopec Oilfield Service 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.
Sinopec Oilfield Service Financial Strength Related Terms
Thank you for viewing the detailed overview of Sinopec Oilfield Service's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Sinopec Oilfield Service (SHSE:600871) Business Description
Sinopec Oilfield Service Corp engages in the provision of onshore and offshore oil and natural gas, exploration, provision of contracting, design, and construction services for the oil and gas projects. It operates through five segments: Geophysics, which provides technical and development, exploration geophysical services; Drilling engineering segment, which provides drilling design, and construction, technical services; Logging and mud logging segment; Special downhole segment, which provides oil engineering technical and construction services; and Engineering construction segment, which provides a package of services, including feasibility studies, procurement, and others. Its geographical segments are, The PRC, Middle East and Other countries.
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