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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.
Good Sign:
Altman Z-score of 7.19 is strong.
Hongchang International Co has a Altman Z-Score of 7.19, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
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 Hongchang International Co's Altman Z-Score or its related term are showing as below:
During the past 13 years, Hongchang International Co's highest Altman Z-Score was 11.23. The lowest was -434.88. And the median was -55.23.
The historical data trend for Hongchang International Co'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.
Hongchang International Co Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Altman Z-Score | Get a 7-Day Free Trial | -32.97 | -158.37 | -318.25 | -0.98 | 11.23 |
Hongchang International Co Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Altman Z-Score | Get a 7-Day Free Trial | -0.98 | -105.77 | -100.79 | 19.20 | 11.23 |
For the Packaged Foods subindustry, Hongchang International Co'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.
For the Consumer Packaged Goods industry and Consumer Defensive sector, Hongchang International Co's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Hongchang International Co's Altman Z-Score falls into.
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.
Hongchang International Co'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 | * | 0.0579 | + | 1.4 | * | -0.0162 | + | 3.3 | * | -0.0107 | + | 0.6 | * | 11.8721 | + | 1.0 | * | 0.0531 | |
= | 7.19 |
* 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 $50.22 Mil.
Total Current Assets was $3.96 Mil.
Total Current Liabilities was $1.06 Mil.
Retained Earnings was $-0.81 Mil.
Pre-Tax Income was -0.056 + -0.141 + -0.192 + -0.148 = $-0.54 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 2.598 + 0.051 + 0.006 + 0.01 = $2.67 Mil.
Market Cap (Today) was $115.49 Mil.
Total Liabilities was $9.73 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 | |
= | (3.961 - 1.055) | / | 50.216 | |
= | 0.0579 |
X2 | = | Retained Earnings | / | Total Assets |
= | -0.813 | / | 50.216 | |
= | -0.0162 |
X3 | = | Earnings Before Interest and Taxes | / | Total Assets |
= | (Pre-Tax Income - Interest Expense) | / | Total Assets | |
= | (-0.537 - 0) | / | 50.216 | |
= | -0.0107 |
X4 | = | Market Value Equity | / | Book Value of Total Liabilities |
= | Market Cap | / | Total Liabilities | |
= | 115.492 | / | 9.728 | |
= | 11.8721 |
X5 | = | Revenue | / | Total Assets |
= | 2.665 | / | 50.216 | |
= | 0.0531 |
The zones of discrimination were as such:
Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones
Hongchang International Co has a Altman Z-Score of 7.19 indicating it is in Safe Zones.
Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.
Hongchang International Co (OTCPK:HCIL) 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.
Thank you for viewing the detailed overview of Hongchang International Co's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Ban Siong Ang | director, 10 percent owner | 1986, PERMATANG BERANGAN,, TASEK GELUGOR, PENANG N8 13300 |
Xingjia Gao | director | ROOM 1007, XIANGYUN BUILDING, NO.1400, BAIYUN AV., NORTH GUANGZHOU F4 510440 |
Zengqiang Lin | director, 10 percent owner, officer: CEO, President | 1008, BLOCK B, RONGSHANG BUILDING, FUQING CITY F4 350309 |
Zhenzhu Lin | director, 10 percent owner | 1008, BLOCK B, RONGSHANG BUILDING, FUQING CITY F4 350309 |
Hung Seng Tan | director | 38, LORONG SERI PETALING 1/1, TAMAN SERI PETALING, KULIM,KEDAM N8 09000 |
Daniel C Master | other: Former Pres, Direct, 10% owner | P O BOX 66, LA JOLLA CA 92038 |
Kwee Huwa Tan | director | NO 8-1F, JALAN GAMALAN INDAH 1, TAMAN GAMELAN INDAH, SINGAI BAKAP N8 14200 |
Wei Li | officer: Chief Financial Officer | 4TH FLOOR, NO. 10 BLDG, XINGLIN BAY, BUSINESS OPERATION CENTER, JIMEI DISTR., XIAMEN F4 00000 |
Derald M Miller | director | 230 WEST 400 SOUTH, 1ST FLOOR, SALT LAKE CITY UT 84101 |
K Lance Bell | director, officer: CEO, President | 230 WEST 400 SOUTH 1ST FLOOR, SALT LAKE CITY UT 84101 |
Tanner J Purser | officer: Secretary | 230 WEST 400 SOUTH, 1ST FLOOR, SALT LAKE CITY UT 84101 |
James C Roundy | director, officer: vice president | 230 WEST 400 SOUTH 1ST FLOOR, SALK LAKE CITY UT 84101 |
Robert Brett Bell | officer: Secretary | 180 SOUTH 300 WEST, SUITE 400, SALT LAKE CITY UT 84101 |
Allan E Oepping | other: Former director | 180 SOUTH 300 WEST, SUITE 400, SALT LAKE CITY UT 84101 |
Benjamin A Black | other: Former director | 180 SOUTH 300 WEST, SUITE 400, SALT LAKE CITY UT 84101 |
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