GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Macau Legend Development Ltd (HKSE:01680) » Definitions » Altman Z2-Score

Macau Legend Development (HKSE:01680) Altman Z2-Score : -0.13 (As of Jun. 12, 2024)


View and export this data going back to 2013. Start your Free Trial

What is Macau Legend Development 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.

Warning Sign:

Macau Legend Development has a Altman Z2-Score of -0.13, 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 Macau Legend Development's Altman Z2-Score or its related term are showing as below:

HKSE:01680' s Altman Z2-Score Range Over the Past 10 Years
Min: -0.76   Med: 0.48   Max: 5.24
Current: -0.13

During the past 12 years, Macau Legend Development's highest Altman Z2-Score was 5.24. The lowest was -0.76. And the median was 0.48.


Macau Legend Development Altman Z2-Score Historical Data

The historical data trend for Macau Legend Development'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.

Macau Legend Development Altman Z2-Score Chart

Macau Legend Development 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 2.98 0.26 -0.39 -0.76 -0.13

Macau Legend Development Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 -0.39 - -0.76 - -0.13

Competitive Comparison of Macau Legend Development's Altman Z2-Score

For the Resorts & Casinos subindustry, Macau Legend Development'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.


Macau Legend Development's Altman Z2-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Macau Legend Development's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where Macau Legend Development's Altman Z2-Score falls into.



Macau Legend Development 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.

Macau Legend Development'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*-0.1165+3.26*-0.1199+6.72*-0.0308+1.05*1.1735
=-0.13

* 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 Dec. 2023:
Total Assets was HK$6,862.6 Mil.
Total Current Assets was HK$210.5 Mil.
Total Current Liabilities was HK$1,010.0 Mil.
Retained Earnings was HK$-823.1 Mil.
Pre-Tax Income was HK$-408.9 Mil.
Interest Expense was HK$-197.6 Mil.
Total Liabilities was HK$3,157.4 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
=(210.452 - 1010.02)/6862.616
=-0.1165

X2=Retained Earnings/Total Assets
=-823.114/6862.616
=-0.1199

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-408.852 - -197.625)/6862.616
=-0.0308

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(3705.229 - 0)/3157.387
=1.1735

The zones of discrimination were as such:

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

Macau Legend Development has a Altman Z2-Score of -0.13 indicating it is in Distress Zones.


Macau Legend Development  (HKSE:01680) 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.


Macau Legend Development Altman Z2-Score Related Terms

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


Macau Legend Development (HKSE:01680) Business Description

Traded in Other Exchanges
Address
Avenida da Amizade e Avenida da, Palace Building, Macau Fisherman’s Wharf, Dr. Sun Yat Sen, Macau, MAC
Macau Legend Development Ltd is an investment holdings company. The company is one of the owners of entertainment and casino gaming facilities in Macau. The company currently has Macau Fisherman's Wharf operated by MFW Investment (MFW), which is a waterfront integrated gaming, hotel, convention and entertainment complex located on the Macau Peninsula. The company's businesses include 1) the provision of gaming services to SJM for the operation of Legend Palace Casino; 2) the operation of casino inside Savan Legend Resorts Hotel and Entertainment Complex in the Lao People's Democratic Republic (Lao PDR); and 3) the operation of hotels, entertainment and leisure facilities within its properties.
Executives
Chow Kam Fai, David
Chan Weng Lin
Wu Jo Hsuan 2202 Interest of your spouse
Perfect Achiever Group Limited 2101 Beneficial owner
Chan Mei Yi, Melinda
Chan Un Chan 2201 Interest of corporation controlled by you
Earth Group Ventures Ltd.
Li Chi Keung
Wong Hoi Ping
Elite Success International Limited 2101 Beneficial owner

Macau Legend Development (HKSE:01680) Headlines

No Headlines