What is Luxin Venture Capital Group Co Financial Strength?
Luxin Venture Capital Group Co 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:
Luxin Venture Capital Group Co 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.
Luxin Venture Capital Group Co did not have earnings to cover the interest expense.
Luxin Venture Capital Group Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 53.47.
As of today, Luxin Venture Capital Group Co's Altman Z-Score is 1.90.
Competitive Comparison of Luxin Venture Capital Group Co's Financial Strength
For the Specialty Industrial Machinery subindustry, Luxin Venture Capital Group 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.
Luxin Venture Capital Group Co's Financial Strength Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Luxin Venture Capital Group Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Luxin Venture Capital Group Co's Financial Strength falls into.
Luxin Venture Capital Group 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.
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.
Luxin Venture Capital Group Co has a Z-score of 1.90, indicating it is in Grey Zones. This implies that Luxin Venture Capital Group 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 1.9 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.
Luxin Venture Capital Group Co (SHSE:600783) 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.
Luxin Venture Capital Group Co 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.
Luxin Venture Capital Group Co Financial Strength Related Terms
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Luxin Venture Capital Group Co (SHSE:600783) Business Description
Luxin Venture Capital Group Co Ltd is a China-based venture capital company. It is engaged in the investment in industries such as advanced manufacturing, modern agriculture, and marine economy; strategic emerging industries such as information technology, energy conservation and environmental protection, new energy, new materials, biotechnology and high-end equipment manufacturing. It is also involved in the fund management business which includes government-managed investment funds and market-oriented self-investment funds.
Luxin Venture Capital Group Co (SHSE:600783) Headlines
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