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China National Accord Medicines (SZSE:000028) Altman Z2-Score : 3.35 (As of May. 28, 2024)


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What is China National Accord Medicines 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.

Good Sign:

China National Accord Medicines has a Altman Z2-Score of 3.35, indicating it is in Safe Zones. This implies the Altman Z2-Score is strong.

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 China National Accord Medicines's Altman Z2-Score or its related term are showing as below:

SZSE:000028' s Altman Z2-Score Range Over the Past 10 Years
Min: 2.91   Med: 3.45   Max: 4.38
Current: 3.35

During the past 13 years, China National Accord Medicines's highest Altman Z2-Score was 4.38. The lowest was 2.91. And the median was 3.45.


China National Accord Medicines Altman Z2-Score Historical Data

The historical data trend for China National Accord Medicines'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.

China National Accord Medicines Altman Z2-Score Chart

China National Accord Medicines 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 3.82 3.28 3.19 3.63 3.57

China National Accord Medicines Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 3.30 3.20 3.23 3.57 3.35

Competitive Comparison of China National Accord Medicines's Altman Z2-Score

For the Medical Distribution subindustry, China National Accord Medicines'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.


China National Accord Medicines's Altman Z2-Score Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, China National Accord Medicines's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where China National Accord Medicines's Altman Z2-Score falls into.



China National Accord Medicines 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.

China National Accord Medicines'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*0.2394+3.26*0.2465+6.72*0.0522+1.05*0.5914
=3.35

* 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 Mar. 2024:
Total Assets was ¥51,525 Mil.
Total Current Assets was ¥40,058 Mil.
Total Current Liabilities was ¥27,722 Mil.
Retained Earnings was ¥12,700 Mil.
Pre-Tax Income was 550.249 + 652.774 + 528.799 + 713.167 = ¥2,445 Mil.
Interest Expense was -54.747 + -64.869 + -75.269 + -49.268 = ¥-244 Mil.
Total Liabilities was ¥30,106 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
=(40058.309 - 27722.116)/51524.997
=0.2394

X2=Retained Earnings/Total Assets
=12700.292/51524.997
=0.2465

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2444.989 - -244.153)/51524.997
=0.0522

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(17803.579 - 0)/30106.181
=0.5914

The zones of discrimination were as such:

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

China National Accord Medicines has a Altman Z2-Score of 3.35 indicating it is in Safe Zones.


China National Accord Medicines  (SZSE:000028) 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.


China National Accord Medicines Altman Z2-Score Related Terms

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China National Accord Medicines (SZSE:000028) Business Description

Traded in Other Exchanges
Address
No. 15, Ba Gua Si 4th Road, Accord Pharmaceutical Building, Futian District, Guangdong Province, Shenzhen, CHN, 518029
China National Accord Medicines Corp Ltd develops and manufactures pharmaceuticals in China. The company engaged in the wholesale of Chinese patent drugs, traditional Chinese medicines, chemical medicine preparations, antibiotics, biochemical drugs and cerebrovascular system drugs. It operates through the following segments: The Head office segment engages in investing and managing the business; The Pharmaceutical Distribution segment engages in the distribution of medicine and pharmaceutical products to customers, including hospitals, other distributors, retail drug stores, and clinics, and Retail pharmacy segment, which is managing the operation of Guoda Pharmacy. It generates maximum revenue from the Pharmaceutical Distribution segment.
Executives
Su Wei Wei Independent director
Chen Chang Bing Secretary Dong
Peng Juan Director
Fu Ming Zhong Director

China National Accord Medicines (SZSE:000028) Headlines

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