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Hansol Chemical Co (XKRX:014680) Financial Strength : 7 (As of Dec. 2023)


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What is Hansol Chemical Co Financial Strength?

Hansol Chemical Co has the Financial Strength Rank of 7.

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.

Hansol Chemical Co's Interest Coverage for the quarter that ended in Dec. 2023 was 13.95. Hansol Chemical Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.38. As of today, Hansol Chemical Co's Altman Z-Score is 5.02.


Competitive Comparison of Hansol Chemical Co's Financial Strength

For the Chemicals subindustry, Hansol Chemical 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.


Hansol Chemical Co's Financial Strength Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Hansol Chemical Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Hansol Chemical Co's Financial Strength falls into.



Hansol Chemical 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:

Hansol Chemical Co's Interest Expense for the months ended in Dec. 2023 was ₩-1,507 Mil. Its Operating Income for the months ended in Dec. 2023 was ₩21,016 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₩154,853 Mil.

Hansol Chemical 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*21015.698/-1506.841
=13.95

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

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

Hansol Chemical 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
=(135047.25 + 154852.676) / 765906.776
=0.38

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.

Hansol Chemical Co has a Z-score of 5.02, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.02 is strong.

* 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.


Hansol Chemical Co  (XKRX:014680) 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.

Hansol Chemical Co has the Financial Strength Rank of 7.


Hansol Chemical Co Financial Strength Related Terms

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Hansol Chemical Co (XKRX:014680) Business Description

Traded in Other Exchanges
N/A
Address
8th Floor, Joongangilbo Building, 8-2 Garakbon-dong, Seoul, KOR, 138-716
Hansol Chemical Co Ltd manufactures and distributes chemicals in Korea. Its core product is hydrogen peroxide which is used by the paper, textile, latex and semiconductor industries. It also produces sodium dithionites, which are used as bleaching agents in the textile industry for vat dyeing reduction cleaning, printing, and stripping. Apart from its main operation, the company also manufactures electronic materials including curable adhesives, conformal coating materials, and black side sealing resins.

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