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Shunfeng International Clean Energy (HKSE:01165) Altman Z-Score : -3.80 (As of Dec. 11, 2024)


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What is Shunfeng International Clean Energy 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 -3.8 is in distress zone. This implies bankruptcy possibility in the next two years.

Shunfeng International Clean Energy has a Altman Z-Score of -3.80, 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 Shunfeng International Clean Energy's Altman Z-Score or its related term are showing as below:

HKSE:01165' s Altman Z-Score Range Over the Past 10 Years
Min: -3.8   Med: -0.69   Max: 0.89
Current: -3.8

During the past 13 years, Shunfeng International Clean Energy's highest Altman Z-Score was 0.89. The lowest was -3.80. And the median was -0.69.


Shunfeng International Clean Energy Altman Z-Score Historical Data

The historical data trend for Shunfeng International Clean Energy'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.

Shunfeng International Clean Energy Altman Z-Score Chart

Shunfeng International Clean Energy 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 -0.90 -1.08 -1.62 -2.17 -3.80

Shunfeng International Clean Energy Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 - -2.17 - -3.80 -

Competitive Comparison of Shunfeng International Clean Energy's Altman Z-Score

For the Utilities - Renewable subindustry, Shunfeng International Clean Energy'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.


Shunfeng International Clean Energy's Altman Z-Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Shunfeng International Clean Energy's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Shunfeng International Clean Energy's Altman Z-Score falls into.



Shunfeng International Clean Energy 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.

Shunfeng International Clean Energy'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*-0.5449+1.4*-2.2611+3.3*-0.021+0.6*0.0256+1.0*0.0734
=-3.80

* 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 HK$3,554.4 Mil.
Total Current Assets was HK$2,205.8 Mil.
Total Current Liabilities was HK$4,142.4 Mil.
Retained Earnings was HK$-8,036.7 Mil.
Pre-Tax Income was HK$-510.2 Mil.
Interest Expense was HK$-435.5 Mil.
Revenue was HK$260.8 Mil.
Market Cap (Today) was HK$132.1 Mil.
Total Liabilities was HK$5,158.0 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
=(2205.79 - 4142.415)/3554.387
=-0.5449

X2=Retained Earnings/Total Assets
=-8036.668/3554.387
=-2.2611

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-510.154 - -435.502)/3554.387
=-0.021

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=132.143/5158
=0.0256

X5=Revenue/Total Assets
=260.845/3554.387
=0.0734

The zones of discrimination were as such:

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

Shunfeng International Clean Energy has a Altman Z-Score of -3.80 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.


Shunfeng International Clean Energy  (HKSE:01165) 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.


Shunfeng International Clean Energy Altman Z-Score Related Terms

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Shunfeng International Clean Energy Business Description

Traded in Other Exchanges
Address
Number 26 Harbour Road, Rooms 3803-05, 38th Floor, China Resources Building, Wan Chai, HKG
Shunfeng International Clean Energy Ltd is a diversified integrated provider of clean energies and low-carbon and energy-saving solutions. It operates in a single segment namely solar power generation. Geographically, it generates the majority of revenue from Mainland China.
Executives
Gardner Aaron Luke (in The Capacity As The Receiver) 2201 Interest of corporation controlled by you
Fok Hei Yu (in The Capacity As The Receiver) 2201 Interest of corporation controlled by you
Faithsmart Limited 2201 Interest of corporation controlled by you
Cheng Kin Ming 2201 Interest of corporation controlled by you
Bank Of Communications Co., Ltd. 2106 Person having a security interest in shares
Bocom International Holdings Company Limited 2106 Person having a security interest in shares
Tang Guoqiang 2201 Interest of corporation controlled by you
Asia Pacific Resources Development Investment Limited 2201 Interest of corporation controlled by you
Peace Link Services Limited 2201 Interest of corporation controlled by you

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