What is Southgobi Resources Financial Strength?
Southgobi Resources has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Southgobi Resources Ltd 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.
Southgobi Resources's Interest Coverage for the quarter that ended in Mar. 2024 was 3.41.
Southgobi Resources's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.62.
As of today, Southgobi Resources's Altman Z-Score is -4.09.
Competitive Comparison of Southgobi Resources's Financial Strength
For the Thermal Coal subindustry, Southgobi Resources'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.
Southgobi Resources's Financial Strength Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Southgobi Resources's Financial Strength distribution charts can be found below:
* The bar in red indicates where Southgobi Resources's Financial Strength falls into.
Southgobi Resources 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:
Southgobi Resources's Interest Expense for the
months ended in Mar. 2024 was HK$-73 Mil. Its Operating Income for the
months ended in Mar. 2024 was HK$249 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was HK$674 Mil.
Southgobi Resources's Interest Coverage for the quarter that ended in Mar. 2024 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Southgobi Resources Ltd interest coverage is 1.68, which is low.
2. Debt to revenue ratio. The lower, the better.
Southgobi Resources's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is
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.
Southgobi Resources has a Z-score of -4.09, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -4.09 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.
Southgobi Resources (HKSE:01878) Business Description
Traded in Other Exchanges
Address
355 Burrard Street, Suite 1150, Vancouver, BC, CAN, V6C 2G8
Southgobi Resources Ltd together with its subsidiaries is an integrated coal mining, development, and exploration company. Its reportable operating segment is its Coal Division which is principally engaged in coal mining, development, and exploration in Mongolia and logistics and trading of coal in Mongolia and China. The company also holds the mining and exploration licenses of other metallurgical and thermal coal deposits in the South Gobi Province of Mongolia. The company owns the following operating coal mine and coal projects in Mongolia: the Ovoot Tolgoi Mine, Zag Suuj Project, and the Soumber Project.
Executives
Southgobi Resources (HKSE:01878) Headlines
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