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Yunnan Energy International Co (HKSE:01298) Financial Strength : 5 (As of Dec. 2023)


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What is Yunnan Energy International Co Financial Strength?

Yunnan Energy International 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.

Yunnan Energy International Co's Interest Coverage for the quarter that ended in Dec. 2023 was 0.15. Yunnan Energy International Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.19. As of today, Yunnan Energy International Co's Altman Z-Score is 2.52.


Competitive Comparison of Yunnan Energy International Co's Financial Strength

For the Scientific & Technical Instruments subindustry, Yunnan Energy International 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.


Yunnan Energy International Co's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Yunnan Energy International Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Yunnan Energy International Co's Financial Strength falls into.



Yunnan Energy International 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:

Yunnan Energy International Co's Interest Expense for the months ended in Dec. 2023 was HK$-2.7 Mil. Its Operating Income for the months ended in Dec. 2023 was HK$0.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$0.0 Mil.

Yunnan Energy International 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*0.391/-2.65
=0.15

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

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

Yunnan Energy International 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
=(91.446 + 0) / 470.168
=0.19

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.

Yunnan Energy International Co has a Z-score of 2.52, indicating it is in Grey Zones. This implies that Yunnan Energy International 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 2.52 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.


Yunnan Energy International Co  (HKSE:01298) 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.

Yunnan Energy International Co has the Financial Strength Rank of 5.


Yunnan Energy International Co Financial Strength Related Terms

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Yunnan Energy International Co (HKSE:01298) Business Description

Traded in Other Exchanges
Address
26 Harbour Road, Room 2008, 20th Floor, China Resources Building, Wanchai, Hong Kong, HKG
Yunnan Energy International Co Ltd is a China based company operates analytical instruments, life science equipment, and laboratory instruments. The business functions through two operating segment; the Distribution Business segment which is engaged in the provision of distribution and after-sales services for different analytical instruments, life science and general laboratory instruments; and the Supply Chain Business segment which is engaged in the trading of diversified industrial and consumer products. Its instruments comprise of chromatographs, spectrophotometers, electronic microscopes, life science and general laboratory instruments, with specialized and customized hardware and software, to provide solutions scientific analysis and testing for variety of businesses.

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