GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Frtek Co Ltd (XKRX:073540) » Definitions » Altman Z2-Score

Frtek Co (XKRX:073540) Altman Z2-Score : 6.85 (As of Oct. 31, 2024)


View and export this data going back to 2007. Start your Free Trial

What is Frtek Co 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:

Frtek Co has a Altman Z2-Score of 6.85, 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 Frtek Co's Altman Z2-Score or its related term are showing as below:

XKRX:073540' s Altman Z2-Score Range Over the Past 10 Years
Min: 0.99   Med: 3.38   Max: 12.78
Current: 6.85

During the past 13 years, Frtek Co's highest Altman Z2-Score was 12.78. The lowest was 0.99. And the median was 3.38.


Frtek Co Altman Z2-Score Historical Data

The historical data trend for Frtek Co'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.

Frtek Co Altman Z2-Score Chart

Frtek Co 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 2.18 1.87 1.86 3.72 6.31

Frtek Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 3.50 6.20 6.31 6.64 6.85

Competitive Comparison of Frtek Co's Altman Z2-Score

For the Communication Equipment subindustry, Frtek Co'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.


Frtek Co's Altman Z2-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Frtek Co's Altman Z2-Score distribution charts can be found below:

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



Frtek Co 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.

Frtek Co'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*0.2371+3.26*0.5282+6.72*0.0132+1.05*3.3142
=6.85

* 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 Jun. 2024:
Total Assets was ₩74,912 Mil.
Total Current Assets was ₩29,879 Mil.
Total Current Liabilities was ₩12,119 Mil.
Retained Earnings was ₩39,565 Mil.
Pre-Tax Income was 252.012 + -623.193 + -1119.231 + 2338.275 = ₩848 Mil.
Interest Expense was -33.766 + -19.672 + -23.537 + -66.065 = ₩-143 Mil.
Total Liabilities was ₩17,283 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
=(29878.56 - 12118.605)/74912.229
=0.2371

X2=Retained Earnings/Total Assets
=39565.24/74912.229
=0.5282

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(847.863 - -143.04)/74912.229
=0.0132

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(57279.345 - 0)/17283.025
=3.3142

The zones of discrimination were as such:

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

Frtek Co has a Altman Z2-Score of 6.85 indicating it is in Safe Zones.


Frtek Co  (XKRX:073540) 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.


Frtek Co Altman Z2-Score Related Terms

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


Frtek Co Business Description

Traded in Other Exchanges
N/A
Address
11-25, Simin-daero 327beon-gil, FRTek Tower, Dongan-gu, Gyeonggi-do, Anyang-si,, KOR, 14055
Frtek Co Ltd is involved in providing mobile communication systems and LED lighting products in South Korea. The company offers wireless solutions, such as interference cancellation system repeaters, and single operator and multi-operator digital DAS. The company offers wireless solutions, such as DAS systems, ICS systems, RF repeaters, and DMS systems; LED solutions and amplifier solutions and custom amplifier products for defense industry.

Frtek Co Headlines

No Headlines