CNIT has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
China Information Technology Inc has a Z-score of -2.34, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
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.
During the past 9 years, China Information Technology Inc's highest Altman Z-Score was 548.70. The lowest was -1.90. And the median was 3.02.
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.
China Information Technology Inc's Altman Z-Score for today is calculated with this formula:
* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.
Trailing Twelve Months (TTM) ended in Jun. 2014:
Total Assets was $189.24 Mil.
Total Current Assets was $81.21 Mil.
Total Current Liabilities was $127.99 Mil.
Retained Earnings was $-113.51 Mil.
Pretax Income was $-120.31 Mil.
Interest Expense was $-5.55 Mil.
Revenue was $76.15 Mil.
Market Capitalization (Today) was $98.92 Mil.
Total Liabilities was $151.89 Mil.
|X1||=||Working Capital||/||Total Assets|
|=||(Total Current Assets - Total Current Liabilities)||/||Total Assets|
|=||(81.212 - 127.991)||/||189.239|
|X3||=||Earnings Before Interest and Taxes||/||Total Assets|
|=||(Pretax Income + Interest Expense)||/||Total Assets|
|=||(-120.309 + -5.554)||/||189.239|
|X4||=||Market Value Equity||/||Book Value of Total Liabilities|
|=||Market Capitalization||/||Total Liabilities|
The zones of discrimination were as such:
Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones
China Information Technology Inc has a Z-score of -2.34 indicating it is in Distress Zones.
Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firms assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firms assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
Z score does not apply to financial companies.
China Information Technology Inc Annual Data
|Zones||Safe Zones||Safe Zones||Safe Zones||Safe Zones||Safe Zones||Grey Zones||Distress Zones||Distress Zones||Distress Zones|
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.