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Gaush Meditech (HKSE:02407) Altman Z-Score : 1.63 (As of Oct. 31, 2024)


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What is Gaush Meditech Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of 1.6 is in distress zone. This implies bankruptcy possibility in the next two years.

Gaush Meditech has a Altman Z-Score of 1.63, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Gaush Meditech's Altman Z-Score or its related term are showing as below:

HKSE:02407' s Altman Z-Score Range Over the Past 10 Years
Min: 1.6   Med: 3.55   Max: 3.57
Current: 1.6

During the past 5 years, Gaush Meditech's highest Altman Z-Score was 3.57. The lowest was 1.60. And the median was 3.55.


Gaush Meditech Altman Z-Score Historical Data

The historical data trend for Gaush Meditech's Altman Z-Score can be seen below:

* 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.

* Premium members only.

Gaush Meditech Altman Z-Score Chart

Gaush Meditech Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
- - - 3.57 3.52

Gaush Meditech Semi-Annual Data
Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only - 3.57 - 3.52 -

Competitive Comparison of Gaush Meditech's Altman Z-Score

For the Medical Devices subindustry, Gaush Meditech's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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.


Gaush Meditech's Altman Z-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Gaush Meditech's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Gaush Meditech's Altman Z-Score falls into.



Gaush Meditech Altman Z-Score Calculation

Altman 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.

Gaush Meditech's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1755+1.4*-0.1452+3.3*0.1049+0.6*1.2993+1.0*0.4945
=1.63

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Dec. 2023:
Total Assets was HK$3,110 Mil.
Total Current Assets was HK$1,521 Mil.
Total Current Liabilities was HK$975 Mil.
Retained Earnings was HK$-452 Mil.
Pre-Tax Income was HK$271 Mil.
Interest Expense was HK$-55 Mil.
Revenue was HK$1,538 Mil.
Market Cap (Today) was HK$1,630 Mil.
Total Liabilities was HK$1,254 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1521.267 - 975.287)/3110.398
=0.1755

X2=Retained Earnings/Total Assets
=-451.649/3110.398
=-0.1452

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(270.967 - -55.352)/3110.398
=0.1049

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1629.724/1254.27
=1.2993

X5=Revenue/Total Assets
=1538.113/3110.398
=0.4945

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Gaush Meditech has a Altman Z-Score of 1.63 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.


Gaush Meditech  (HKSE:02407) Altman Z-Score Explanation

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 firm's 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 firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Gaush Meditech Altman Z-Score Related Terms

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Gaush Meditech Business Description

Traded in Other Exchanges
N/A
Address
No.11 Dongzhimen South Avenue, Room 1901, Building A, Zhonghui Plaza, Dongcheng District, Beijing, CHN
Gaush Meditech Ltd is a provider of a broad spectrum of ophthalmic medical devices. The segments of the company include 1) Proprietary products segment develops and produces surgical equipment and related supporting software, intra-optical lens, ophthalmic disease diagnosis and treatment equipment and related supporting consumables independently; 2) Distribution products segment sells multi-function diagnostic equipment, ocular fundus diagnosis, surgical and treatment equipment and related supporting consumables produced by ophthalmic medical equipment manufacturers; 3) Technical services segment provides warranty services, maintenance services and after-sales services related consumables; and 4) Others segment.
Executives
Orbimed Advisors Iii Limited 2102 Investment manager
Orbimed Asia Gp Iii, L.p. 2102 Investment manager
Orbimed Asia Partners Iii, L.p. 2102 Investment manager
Gao Tieta 2201 Interest of corporation controlled by you
Gaush Holding Ltd 2101 Beneficial owner
Cuprite Gem Investments Ltd 2101 Beneficial owner
Warburg Pincus (bermuda) Private Equity Gp Ltd. 2201 Interest of corporation controlled by you
Warburg Pincus (cayman) China-southeast Asia Ii Gp Llc 2201 Interest of corporation controlled by you
Warburg Pincus (cayman) China-southeast Asia Ii Gp, L.p. 2201 Interest of corporation controlled by you
Warburg Pincus China-southeast Asia Ii (cayman), L.p. 2201 Interest of corporation controlled by you
Warburg Pincus Partners Ii (cayman), L.p. 2201 Interest of corporation controlled by you

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