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BAIC Motor (BAIC Motor) Financial Strength : 7 (As of Dec. 2023)


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What is BAIC Motor Financial Strength?

BAIC Motor 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.

BAIC Motor's Interest Coverage for the quarter that ended in Dec. 2023 was 309.19. BAIC Motor's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.08. As of today, BAIC Motor's Altman Z-Score is 1.53.


Competitive Comparison of BAIC Motor's Financial Strength

For the Auto Manufacturers subindustry, BAIC Motor'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.


BAIC Motor's Financial Strength Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, BAIC Motor's Financial Strength distribution charts can be found below:

* The bar in red indicates where BAIC Motor's Financial Strength falls into.



BAIC Motor 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:

BAIC Motor's Interest Expense for the months ended in Dec. 2023 was $-1 Mil. Its Operating Income for the months ended in Dec. 2023 was $319 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $924 Mil.

BAIC Motor'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*319.084/-1.032
=309.19

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

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

BAIC Motor'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
=(958.515 + 924.453) / 24390.876
=0.08

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.

BAIC Motor has a Z-score of 1.53, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.53 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.


BAIC Motor  (OTCPK:BMCLF) 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.

BAIC Motor has the Financial Strength Rank of 7.


BAIC Motor Financial Strength Related Terms

Thank you for viewing the detailed overview of BAIC Motor's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


BAIC Motor (BAIC Motor) Business Description

Traded in Other Exchanges
Address
No. 99 Shuanghe Street, A5-061, Unit 101, 5th Floor, Building No 1, Courtyard, Shunyi District, Beijing, CHN, 101300
BAIC Motor Corp Ltd is a provincial state-owned enterprise that manufactures passenger vehicles (PV) and automotive components. The majority of BAIC's revenue and operating profits come from joint ventures with Mercedes Benz and Hyundai. The firm also manufactures and sells its own vehicles under the Beijing Brand.

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