GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » Britvic PLC (OTCPK:BTVCY) » Definitions » Altman Z-Score

BTVCY (Britvic) Altman Z-Score : 2.71 (As of Dec. 15, 2024)


View and export this data going back to 2010. Start your Free Trial

What is Britvic 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 2.75 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Britvic has a Altman Z-Score of 2.71, indicating it is in Grey Zones. This implies that Britvic is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

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

BTVCY' s Altman Z-Score Range Over the Past 10 Years
Min: 1.86   Med: 2.2   Max: 2.75
Current: 2.75

During the past 13 years, Britvic's highest Altman Z-Score was 2.75. The lowest was 1.86. And the median was 2.20.


Britvic Altman Z-Score Historical Data

The historical data trend for Britvic'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.

Britvic Altman Z-Score Chart

Britvic Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.20 2.30 2.06 2.19 2.74

Britvic Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 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 2.06 - 2.19 - 2.74

Competitive Comparison of Britvic's Altman Z-Score

For the Beverages - Non-Alcoholic subindustry, Britvic'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.


Britvic's Altman Z-Score Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Britvic's Altman Z-Score distribution charts can be found below:

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



Britvic 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.

Britvic'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*-0.0008+1.4*0.0668+3.3*0.1114+0.6*2.0411+1.0*1.0243
=2.71

* 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 $2,452 Mil.
Total Current Assets was $928 Mil.
Total Current Liabilities was $930 Mil.
Retained Earnings was $164 Mil.
Pre-Tax Income was $229 Mil.
Interest Expense was $-44 Mil.
Revenue was $2,512 Mil.
Market Cap (Today) was $4,079 Mil.
Total Liabilities was $1,999 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
=(928.175 - 930.159)/2452.381
=-0.0008

X2=Retained Earnings/Total Assets
=163.757/2452.381
=0.0668

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(229.101 - -44.18)/2452.381
=0.1114

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=4079.296/1998.545
=2.0411

X5=Revenue/Total Assets
=2511.905/2452.381
=1.0243

The zones of discrimination were as such:

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

Britvic has a Altman Z-Score of 2.71 indicating it is in Grey Zones.

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


Britvic  (OTCPK:BTVCY) 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.


Britvic Altman Z-Score Related Terms

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


Britvic Business Description

Traded in Other Exchanges
Address
Breakspear Way, Breakspear Park, Hemel Hempstead, Hertfordshire, GBR, HP2 4TZ
Britvic PLC manufactures and sells nonalcoholic beverages, predominantly in Great Britain, France, and Ireland. In Great Britain and Ireland, the company sells PepsiCo brands in addition to its own Britvic brands. Britvic brands include Robinsons, J2O, Tango, Fruit Shoot and others. In France, it sells its own brands, including Teisseire, as well as private-label juices and syrups. The company also has a small international business that sells in dozens of countries, including India, the United States, and Brazil, where Britvic bought the Ebba company and now owns the Maguary and Dafruta brands. Majority of the company's total revenue is from sales in Great Britain. Britvic predominantly distributes its products to supermarkets.

Britvic Headlines

From GuruFocus

Britvic PLC's Dividend Analysis

By GuruFocus Research 12-21-2023

Full Year 2022 Britvic PLC Earnings Call Transcript

By GuruFocus Research 02-13-2024

British Pepsi Distributor up Since December

By Holmes Osborne, CFA Holmes Osborne, CFA 04-12-2017