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Prime Focus (BOM:532748) Altman Z-Score : 1.02 (As of Dec. 13, 2024)


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What is Prime Focus 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 1.01 is in distress zone. This implies bankruptcy possibility in the next two years.

Prime Focus has a Altman Z-Score of 1.02, 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 Prime Focus's Altman Z-Score or its related term are showing as below:

BOM:532748' s Altman Z-Score Range Over the Past 10 Years
Min: 0.25   Med: 0.71   Max: 1.58
Current: 1.01

During the past 13 years, Prime Focus's highest Altman Z-Score was 1.58. The lowest was 0.25. And the median was 0.71.


Prime Focus Altman Z-Score Historical Data

The historical data trend for Prime Focus'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.

Prime Focus Altman Z-Score Chart

Prime Focus Annual Data
Trend Jun15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.27 0.25 0.47 1.18 0.81

Prime Focus Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.35 1.28 0.81 0.78 1.04

Competitive Comparison of Prime Focus's Altman Z-Score

For the Entertainment subindustry, Prime Focus'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.


Prime Focus's Altman Z-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Prime Focus's Altman Z-Score distribution charts can be found below:

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



Prime Focus 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.

Prime Focus'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*0.1339+1.4*0+3.3*0.0221+0.6*0.6067+1.0*0.4268
=1.02

* 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 Sep. 2024:
Total Assets was ₹79,271 Mil.
Total Current Assets was ₹38,481 Mil.
Total Current Liabilities was ₹27,865 Mil.
Retained Earnings was ₹0 Mil.
Pre-Tax Income was 750.991 + -1347.686 + -1157.89 + -1181.412 = ₹-2,936 Mil.
Interest Expense was -1276.491 + -1272.119 + -972.979 + -1166.37 = ₹-4,688 Mil.
Revenue was 8849.573 + 7959.831 + 8632.417 + 8387.123 = ₹33,829 Mil.
Market Cap (Today) was ₹40,543 Mil.
Total Liabilities was ₹66,822 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
=(38480.992 - 27864.684)/79270.828
=0.1339

X2=Retained Earnings/Total Assets
=0/79270.828
=0

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-2935.997 - -4687.959)/79270.828
=0.0221

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=40543.240/66821.584
=0.6067

X5=Revenue/Total Assets
=33828.944/79270.828
=0.4268

The zones of discrimination were as such:

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

Prime Focus has a Altman Z-Score of 1.02 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.


Prime Focus  (BOM:532748) 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.


Prime Focus Altman Z-Score Related Terms

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Prime Focus Business Description

Traded in Other Exchanges
Address
Prime Focus House, Linking Road, Opposite Citi Bank, Khar (West), Mumbai, MH, IND, 400 052
Prime Focus Ltd is an Indian integrated media service provider. The company is engaged in providing post-production services which include digital intermediate, visual effects, stereo 3D conversion, and animation technology products and services. It also provides stereo conversion, color grading, sound and picture post, renting of camera equipment, visual effects services, media enterprise resource planning and suite, and cloud-enabled media services. The Group operates in five principal geographical areas: India, Australia, the United Kingdom, Canada, and the United States of America (U.S.) of which it generates the majority of its revenue from Canada.

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