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CBRE (CBRE Group) Altman Z2-Score : 2.56 (As of Dec. 12, 2024)


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What is CBRE Group Altman Z2-Score?

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.

CBRE Group has a Altman Z2-Score of 2.56, indicating it is in Grey Zones. This implies that CBRE Group is in some kind of financial stress. If it is below 1.1, the company may face bankrupcy risk.

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 CBRE Group's Altman Z2-Score or its related term are showing as below:

CBRE' s Altman Z2-Score Range Over the Past 10 Years
Min: 1.76   Med: 2.81   Max: 3.55
Current: 2.56

During the past 13 years, CBRE Group's highest Altman Z2-Score was 3.55. The lowest was 1.76. And the median was 2.81.


CBRE Group Altman Z2-Score Historical Data

The historical data trend for CBRE Group'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.

CBRE Group Altman Z2-Score Chart

CBRE Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z2-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.87 2.89 3.18 2.75 2.81

CBRE Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Altman Z2-Score Get a 7-Day Free Trial 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 2.62 2.81 2.70 2.59 2.56

Competitive Comparison of CBRE Group's Altman Z2-Score

For the Real Estate Services subindustry, CBRE Group'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.


CBRE Group's Altman Z2-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, CBRE Group's Altman Z2-Score distribution charts can be found below:

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



CBRE Group 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.

CBRE Group'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*0.0477+3.26*0.3858+6.72*0.0579+1.05*0.5685
=2.56

* 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. 2024:
Total Assets was $24,845 Mil.
Total Current Assets was $10,616 Mil.
Total Current Liabilities was $9,430 Mil.
Retained Earnings was $9,584 Mil.
Pre-Tax Income was 312 + 174 + 119 + 631 = $1,236 Mil.
Interest Expense was -64 + -63 + -36 + -39 = $-202 Mil.
Total Liabilities was $15,289 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
=(10616 - 9430)/24845
=0.0477

X2=Retained Earnings/Total Assets
=9584/24845
=0.3858

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1236 - -202)/24845
=0.0579

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(8692 - 0)/15289
=0.5685

The zones of discrimination were as such:

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

CBRE Group has a Altman Z2-Score of 2.56 indicating it is in Grey Zones.


CBRE Group  (NYSE:CBRE) 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.


CBRE Group Altman Z2-Score Related Terms

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


CBRE Group Business Description

Address
2100 McKinney Avenue, Suite 1250, Dallas, TX, USA, 75201
CBRE Group provides a wide range of real estate services to owners, occupants, and investors worldwide, including leasing, property and project management, and capital markets advisory. CBRE's investment management arm manages over $140 billion for clients across diverse public and private real estate strategies.
Executives
Daniel G Queenan officer: CEO, Real Estate Investments C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Emma E. Giamartino officer: See Remarks 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Vikramaditya Kohli officer: See Remarks 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Christopher T Jenny director MAC-GRAY CORPORATION, 22 WATER STREET, CAMBRIDGE MA 02141
Oscar Munoz director
Lindsey S Caplan officer: Chief Accounting Officer 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
John E Durburg officer: Chief Operating Officer C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Chandra Dhandapani officer: Chief Digital & Tech. Officer C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Brandon Boze director ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Hutcheson Edward Mcvicar Blake director 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
J. Christopher Kirk officer: EVP, Chief Admin. Officer C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Susan Meaney director 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019
Robert E Sulentic director, officer: Group President C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Michael J Lafitte officer: President, Americas C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Laurence H Midler officer: EVP & Secretary C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201