What is Sumitomo Heavy Industries Financial Strength?
Sumitomo Heavy Industries 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.
Sumitomo Heavy Industries's Interest Coverage for the quarter that ended in Dec. 2023 was 33.29.
Sumitomo Heavy Industries's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.13.
As of today, Sumitomo Heavy Industries's Altman Z-Score is 2.44.
Competitive Comparison of Sumitomo Heavy Industries's Financial Strength
For the Specialty Industrial Machinery subindustry, Sumitomo Heavy Industries'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.
Sumitomo Heavy Industries's Financial Strength Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Sumitomo Heavy Industries's Financial Strength distribution charts can be found below:
* The bar in red indicates where Sumitomo Heavy Industries's Financial Strength falls into.
Sumitomo Heavy Industries 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:
Sumitomo Heavy Industries's Interest Expense for the
months ended in Dec. 2023 was 円-740 Mil. Its Operating Income for the
months ended in Dec. 2023 was 円24,635 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円79,231 Mil.
Sumitomo Heavy Industries's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Sumitomo Heavy Industries's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 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.
Sumitomo Heavy Industries has a Z-score of 2.44, indicating it is in Grey Zones. This implies that Sumitomo Heavy Industries 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 2.44 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.
Sumitomo Heavy Industries (TSE:6302) Business Description
Traded in Other Exchanges
Address
ThinkPark Tower, 1-1 Osaki 2-chome, Shinagawa-ku, Tokyo, JPN, 141-6025
Sumitomo Heavy Industries Ltd develops and manufactures a range of industrial machinery, from gearboxes to ships and large-scale plants. It offers power transmission and control systems, molding machinery, mobile cranes, turbines, and other industrial systems to optimize production. The company has six operating segments: machinery components, precision machinery, construction machinery, industrial machinery, ships, and environmental facilities and plants. Its segments collaborate, utilize research and development, and look for synergies to create new technologies or build on existing components. Japan accounts for approximately half of total revenue, with the remainder split between the United States, China, and other areas.
Sumitomo Heavy Industries (TSE:6302) Headlines
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