What is Deswell Industries Financial Strength?
Deswell Industries has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Deswell Industries Inc shows strong financial strength.
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.
Deswell Industries has no long-term debt (1).
Deswell Industries's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.00.
As of today, Deswell Industries's Altman Z-Score is 2.82.
(1) Note: An indication of "no long-term debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Competitive Comparison of Deswell Industries's Financial Strength
For the Electronic Components subindustry, Deswell 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.
Deswell Industries's Financial Strength Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Deswell Industries's Financial Strength distribution charts can be found below:
* The bar in red indicates where Deswell Industries's Financial Strength falls into.
Deswell 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:
Deswell Industries's Interest Expense for the
months ended in Sep. 2023 was $0.00 Mil. Its Operating Income for the
months ended in Sep. 2023 was $2.10 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $0.00 Mil.
Deswell Industries's Interest Coverage for the quarter that ended in Sep. 2023 is
| Deswell Industries had no long-term debt (1). |
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Deswell Industries Inc has no debt.
2. Debt to revenue ratio. The lower, the better.
Deswell Industries's Debt to Revenue Ratio for the quarter that ended in Sep. 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.
Deswell Industries has a Z-score of 2.82, indicating it is in Grey Zones. This implies that Deswell 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 2.82 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.
Deswell Industries (Deswell Industries) Business Description
Traded in Other Exchanges
Address
10B, Edificio Associacao Industrial De Macau, No. 32-36 Rua do Comandante Mata e Oliveira, Macao, MAC
Deswell Industries Inc is engaged in the manufacturing and selling of injection-molded plastic parts and components. In addition, it also offers manufacturing services for electronic products and subassemblies and manufactures metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company conducts all of its manufacturing activities at separate plastics, electronics and metallic operation factories located in the People's Republic of China. It operates through the Plastic Injection Molding and Electronic Products Assembling segments. The firm offers products such as automobile components, medical testing equipment, parts for audio equipment, av receivers, active subwoofers, digital system key sets, communication products and others.
Deswell Industries (Deswell Industries) Headlines
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