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ADNOC Gas (ADX:ADNOCGAS) Altman Z-Score : 7.81 (As of Oct. 31, 2024)


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What is ADNOC Gas 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.

Good Sign:

Altman Z-score of 7.8 is strong.

ADNOC Gas has a Altman Z-Score of 7.81, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

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 ADNOC Gas's Altman Z-Score or its related term are showing as below:

ADX:ADNOCGAS' s Altman Z-Score Range Over the Past 10 Years
Min: 6.16   Med: 7.3   Max: 12.46
Current: 7.8

During the past 3 years, ADNOC Gas's highest Altman Z-Score was 12.46. The lowest was 6.16. And the median was 7.30.


ADNOC Gas Altman Z-Score Historical Data

The historical data trend for ADNOC Gas'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.

ADNOC Gas Altman Z-Score Chart

ADNOC Gas Annual Data
Trend Dec20 Dec21 Dec23
Altman Z-Score
- - 7.30

ADNOC Gas Quarterly Data
Dec20 Dec21 Oct22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only - 8.42 7.30 6.16 7.02

Competitive Comparison of ADNOC Gas's Altman Z-Score

For the Oil & Gas Integrated subindustry, ADNOC Gas'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.


ADNOC Gas's Altman Z-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, ADNOC Gas's Altman Z-Score distribution charts can be found below:

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



ADNOC Gas 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.

ADNOC Gas'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*0.0943+1.4*0.1291+3.3*0.2165+0.6*10.2707+1.0*0.6432
=7.81

* 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 Jun. 2024:
Total Assets was د.إ109,451 Mil.
Total Current Assets was د.إ24,222 Mil.
Total Current Liabilities was د.إ13,895 Mil.
Retained Earnings was د.إ14,130 Mil.
Pre-Tax Income was 5908.738 + 5890.37 + 6347.563 + 5411.476 = د.إ23,558 Mil.
Interest Expense was -166.25 + -73.122 + 255.819 + -156.693 = د.إ-140 Mil.
Revenue was 17862.423 + 16750.047 + 18266.601 + 17516.281 = د.إ70,395 Mil.
Market Cap (Today) was د.إ254,815 Mil.
Total Liabilities was د.إ24,810 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
=(24221.575 - 13895.364)/109450.509
=0.0943

X2=Retained Earnings/Total Assets
=14129.601/109450.509
=0.1291

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(23558.147 - -140.246)/109450.509
=0.2165

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=254814.721/24809.96
=10.2707

X5=Revenue/Total Assets
=70395.352/109450.509
=0.6432

The zones of discrimination were as such:

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

ADNOC Gas has a Altman Z-Score of 7.81 indicating it is in Safe Zones.

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


ADNOC Gas  (ADX:ADNOCGAS) 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.


ADNOC Gas Altman Z-Score Related Terms

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ADNOC Gas Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Al Sarab Tower, Abu Dhabi Global Market Square, Floor 28, Al Maryah Island, Abu Dhabi, ARE
ADNOC Gas PLC is an integrated gas processing company. The Company is responsible for producing, processing, distributing, and marketing natural gas and its derivatives in the UAE and abroad. ADNOC Gas operates a network of pipelines, processing plants, storage facilities, and export terminals that supply gas to various sectors, including power generation, water desalination, petrochemicals, industries, and households. The Company also exports liquefied natural gas (LNG) and liquefied petroleum gas (LPG) to regional and international markets.

ADNOC Gas Headlines

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