What is Kangda New Materials (Group) Co Financial Strength?
Kangda New Materials (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:
Kangda New Materials (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.
Kangda New Materials (Group) Co did not have earnings to cover the interest expense.
Kangda New Materials (Group) Co's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.26.
As of today, Kangda New Materials (Group) Co's Altman Z-Score is 1.18.
Competitive Comparison of Kangda New Materials (Group) Co's Financial Strength
For the Specialty Chemicals subindustry, Kangda New Materials (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.
Kangda New Materials (Group) Co's Financial Strength Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kangda New Materials (Group) Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Kangda New Materials (Group) Co's Financial Strength falls into.
Kangda New Materials (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.
Kangda New Materials (Group) Co has a Z-score of 1.18, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.18 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.
Kangda New Materials (Group) Co (SZSE:002669) 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.
Kangda New Materials (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.
Kangda New Materials (Group) Co Financial Strength Related Terms
Thank you for viewing the detailed overview of Kangda New Materials (Group) Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Kangda New Materials (Group) Co (SZSE:002669) Business Description
Shanghai Kangda New Materials Co Ltd is mainly engaged in the research, development, production, and sale of adhesive and sealant products. The company provides more than 200 kinds of products, including epoxy adhesive, polyurethane adhesive, acrylate AB adhesive (SGA), cyanoacrylate adhesive, UV curing adhesive, silicon rubber, anaerobic adhesive, butyl hot melt adhesive, industrial repair putty, spray polyurea and others. The products are widely used in the fields of loudspeaker assembling, energy power plants, transportation, anti-corrosion, ports and mines, military equipment, mechanical equipment, electronic appliances, and construction reinforcement.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SZSE:002669 has been successfully added to your