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ACCO Brands (ACCO Brands) Altman Z-Score : 0.75 (As of Apr. 27, 2024)


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What is ACCO Brands Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of 0.75 is in distress zone. This implies bankruptcy possibility in the next two years.

ACCO Brands has a Altman Z-Score of 0.75, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

ACCO' s Altman Z-Score Range Over the Past 10 Years
Min: 0.7   Med: 0.92   Max: 1.22
Current: 0.75

During the past 13 years, ACCO Brands's highest Altman Z-Score was 1.22. The lowest was 0.70. And the median was 0.92.


ACCO Brands Altman Z-Score Historical Data

The historical data trend for ACCO Brands's Altman Z-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 Altman Z-Score Chart

ACCO Brands Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.02 0.70 0.91 0.80 0.78

ACCO Brands Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-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 0.80 0.82 0.81 0.93 0.78

Competitive Comparison of ACCO Brands's Altman Z-Score

For the Business Equipment & Supplies subindustry, ACCO Brands's Altman Z-Score, along with its competitors' market caps and Altman Z-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's Altman Z-Score Distribution in the Industrial Products Industry

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

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



ACCO Brands Altman Z-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.

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

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1185+1.4*-0.2102+3.3*0.0172+0.6*0.2468+1.0*0.693
=0.75

* 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 Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Dec. 2023:
Total Assets was $2,645 Mil.
Total Current Assets was $855 Mil.
Total Current Liabilities was $542 Mil.
Retained Earnings was $-556 Mil.
Pre-Tax Income was -73.4 + 21.6 + 42 + -3.3 = $-13 Mil.
Interest Expense was -13.6 + -15.6 + -15.5 + -13.9 = $-59 Mil.
Revenue was 488.6 + 448 + 493.6 + 402.6 = $1,833 Mil.
Market Cap (Today) was $459 Mil.
Total Liabilities was $1,858 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
=(855.4 - 542)/2644.8
=0.1185

X2=Retained Earnings/Total Assets
=-556/2644.8
=-0.2102

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-13.1 - -58.6)/2644.8
=0.0172

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=458.504/1857.8
=0.2468

X5=Revenue/Total Assets
=1832.8/2644.8
=0.693

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

ACCO Brands has a Altman Z-Score of 0.75 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


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

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, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


ACCO Brands Altman Z-Score Related Terms

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ACCO Brands (ACCO Brands) 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