What is Sumitomo Pharma Co Financial Strength?
Sumitomo Pharma 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:
Sumitomo Pharma 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.
Sumitomo Pharma Co did not have earnings to cover the interest expense.
Sumitomo Pharma Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.25.
As of today, Sumitomo Pharma Co's Altman Z-Score is 0.07.
Competitive Comparison of Sumitomo Pharma Co's Financial Strength
For the Drug Manufacturers - Specialty & Generic subindustry, Sumitomo Pharma 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.
Sumitomo Pharma Co's Financial Strength Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sumitomo Pharma Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Sumitomo Pharma Co's Financial Strength falls into.
Sumitomo Pharma 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:
Sumitomo Pharma Co's Interest Expense for the
months ended in Dec. 2023 was $-124 Mil. Its Operating Income for the
months ended in Dec. 2023 was $-217 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,280 Mil.
Sumitomo Pharma Co's Interest Coverage for the quarter that ended in Dec. 2023 is
| Sumitomo Pharma Co did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Sumitomo Pharma Co'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 Pharma Co has a Z-score of 0.07, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.07 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.
Sumitomo Pharma Co (Sumitomo Pharma Co) Business Description
Traded in Other Exchanges
Address
6-8, Doshomachi 2-chome, Chuo-ku, Osaka, JPN, 541-0045
Sumitomo Pharma Co Ltd is a specialty and generic drug manufacturing company. Sumitomo's vast majority of sales are generated in North America, followed by Japan. The company's core business is its pharmaceutical products business. The pharmaceutical business maintains a focus on a variety of areas, including cardiovascular/diabetes, psychiatry & neurology, and specialty areas. Sumitomo considers merger and acquisition investment as a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.
Sumitomo Pharma Co (Sumitomo Pharma Co) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
DNPUF has been successfully added to your