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ACCO Brands (NYSE:ACCO) Altman Z2-Score

: 1.02 (As of Today)
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Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.

Warning Sign:

ACCO Brands has a Altman Z2-Score of 1.02, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.

The historical rank and industry rank for ACCO Brands's Altman Z2-Score or its related term are showing as below:

ACCO' s Altman Z2-Score Range Over the Past 10 Years
Min: 0.39   Med: 0.75   Max: 1.3
Current: 1.02

During the past 13 years, ACCO Brands's highest Altman Z2-Score was 1.30. The lowest was 0.39. And the median was 0.75.


ACCO Brands Altman Z2-Score Historical Data

The historical data trend for ACCO Brands's Altman Z2-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.

ACCO Brands Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Altman Z2-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.79 0.74 0.39 0.72 0.67

ACCO Brands Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Altman Z2-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.96 0.67 0.89 0.98 1.02

Competitive Comparison

For the Business Equipment & Supplies subindustry, ACCO Brands's Altman Z2-Score, along with its competitors' market caps and Altman Z2-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.


ACCO Brands Altman Z2-Score Distribution

For the Industrial Products industry and Industrials sector, ACCO Brands's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where ACCO Brands's Altman Z2-Score falls into.



ACCO Brands Altman Z2-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.

Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.

ACCO Brands's Altman Z2-Score for today is calculated with this formula:

Z=6.56*X1+3.26*X2+6.72*X3+1.05*X4_2
=6.56*0.1178+3.26*-0.1822+6.72*0.0548+1.05*0.454
=1.02

* 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 Z2-Score when X4_2 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2023:
Total Assets was $2,684 Mil.
Total Current Assets was $835 Mil.
Total Current Liabilities was $519 Mil.
Retained Earnings was $-489 Mil.
Pre-Tax Income was 21.6 + 42 + -3.3 + 28.7 = $89 Mil.
Interest Expense was -15.6 + -15.5 + -13.9 + -13 = $-58 Mil.
Total Liabilities was $1,846 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
=(835 - 518.9)/2683.7
=0.1178

X2=Retained Earnings/Total Assets
=-488.9/2683.7
=-0.1822

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(89 - -58)/2683.7
=0.0548

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(838 - 0)/1845.7
=0.454

The zones of discrimination were as such:

Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones

ACCO Brands has a Altman Z2-Score of 1.02 indicating it is in Distress Zones.


ACCO Brands  (NYSE:ACCO) Altman Z2-Score Explanation

The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.

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_2, Net Worth (Total Stockholders Equity - Preferred Stock)/Total Liabilities (NW/TL): it compares a company’s stock net worth with its total liabilities and can be used to assess the extent of its reliance on debt.

Read more about Altman Z2-Score, the original research on Z-Score and the additional research on Z2-Score.


Be Aware

Altman Z2-Score does not apply to financial companies.


ACCO Brands Altman Z2-Score Related Terms

Thank you for viewing the detailed overview of ACCO Brands's Altman Z2-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


ACCO Brands (NYSE:ACCO) Business Description

Traded in Other Exchanges
Address
Four Corporate Drive, Lake Zurich, IL, USA, 60047
ACCO Brands Corp designs, manufactures, and markets consumer and business products. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company offers school notebooks, janitorial supplies, and whiteboards; storage and organization products, such as three-ring and lever-arch binders, sheet protectors, and indexes, and punching products; computer accessories and others used in schools, homes, and businesses. It offers its products primarily under the AT-A-GLANCE, Five Star, GBC, Hilroy, Kensington, Quartet, Leitz, NOBO, Rapid, Rexel, Tilibra, and Wilson Jones brands. The company markets and sells its products through various channels, including mass retailers; e-tailers; discount, and variety chains; and warehouse clubs.
Executives
Paul P Daniel officer: SVP and CIO C/O ACCO BRANDS CORPORATION, FOUR CORPORATE DRIVE, LAKE ZURICH IL 60047
Joseph B Burton director 345 ENCINAL STREET, SANTA CRUZ CA 95060
Deborah A Oconnor officer: EVP and CFO C/O ACCO BRANDS CORP, FOUR CORPORATE DRIVE, LAKE ZURICH IL 60047
Gregory J. Mccormack officer: Sr. Vice Pres, Global Products FOUR CORPORATE DRIVE, LAKE ZURICH IL 60047
Roxanne M Bernstein officer: EVP & Pres, ACCO Brands N.A. C/O ACCO BRANDS CORPORATION, FOUR CORPORATE DRIVE, LAKE ZURICH IL 60047
Boris Elisman director, officer: Chairman, President & CEO C/O ACCO BRANDS CORPORATION, FOUR CORPORATE DRIVE, LAKE ZURICH IL 60047
Gina Boswell director MANPOWERGROUP INC., 100 MANPOWER PLACE, MILWAUKEE WI 53212
Angela Y Jones officer: SVP, Global Chief People Offic 9900 W. 109 STREET, SUITE 100, OVERLAND PARK KS 66210
Thomas W Tedford officer: Exec VP & Pres US Office & Con C/O ACCO BRANDS CORPORATION, FOUR CORPORATE DRIVE, LAKE ZURICH IL 60047
Neal V Fenwick officer: Executive VP and CFO FOUR CORPORATE DRIVE, LAKE ZURICH IL 60047
Pamela R Schneider officer: Sr VP, General Counsel & Sec C/O ACCO BRANDS CORPORATION, FOUR CORPORATE DRIVE, LAKE ZURICH IL 60047
Patrick Buchenroth officer: ExecVP, Pres ACCO Brands Intl C/O ACCO BRANDS CORPORATION, FOUR CORPORATE DRIVE, LAKE ZURICH IL 60047
Ralph Paul Hargrow officer: Sr VP & Chief People Officer C/O ACCO BRANDS CORPORATION, FOUR CORPORATE DRIVE, LAKE ZURICH IL 60047
Ronald M. Lombardi director 660 WHITE PLAINS RD., TARRYTOWN NY 10591
James Dudek officer: SVP, Corp Controller and CAO C/O RICHARDSON ELECTRONICS, LTD, PO BOX 393, 40W267 KESLINGER ROAD, LAFOX IL 60147