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AustAsia Group (HKSE:02425) Altman Z-Score : 0.36 (As of Jun. 03, 2024)


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What is AustAsia Group 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 0.7 is in distress zone. This implies bankruptcy possibility in the next two years.

AustAsia Group has a Altman Z-Score of 0.36, 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 AustAsia Group's Altman Z-Score or its related term are showing as below:

HKSE:02425' s Altman Z-Score Range Over the Past 10 Years
Min: 0.7   Med: 1.09   Max: 1.09
Current: 0.7

During the past 5 years, AustAsia Group's highest Altman Z-Score was 1.09. The lowest was 0.70. And the median was 1.09.


AustAsia Group Altman Z-Score Historical Data

The historical data trend for AustAsia Group'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.

AustAsia Group Altman Z-Score Chart

AustAsia Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
- - - 1.09 -

AustAsia Group Semi-Annual Data
Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Altman Z-Score Get a 7-Day Free Trial - - 1.09 - -

Competitive Comparison of AustAsia Group's Altman Z-Score

For the Farm Products subindustry, AustAsia Group'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.


AustAsia Group's Altman Z-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, AustAsia Group's Altman Z-Score distribution charts can be found below:

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



AustAsia Group 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.

AustAsia Group'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*-0.0456+1.4*0+3.3*-0.018+0.6*0.1071+1.0*0.4129
=0.36

* 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. 2022:
Total Assets was HK$12,226 Mil.
Total Current Assets was HK$3,000 Mil.
Total Current Liabilities was HK$3,558 Mil.
Retained Earnings was HK$0 Mil.
Pre-Tax Income was HK$-514 Mil.
Interest Expense was HK$-294 Mil.
Revenue was HK$5,048 Mil.
Market Cap (Today) was HK$714 Mil.
Total Liabilities was HK$6,674 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
=(2999.993 - 3557.679)/12225.565
=-0.0456

X2=Retained Earnings/Total Assets
=0/12225.565
=0

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-514.022 - -294.17)/12225.565
=-0.018

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=714.472/6673.908
=0.1071

X5=Revenue/Total Assets
=5047.549/12225.565
=0.4129

The zones of discrimination were as such:

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

AustAsia Group has a Altman Z-Score of 0.36 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.


AustAsia Group  (HKSE:02425) 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.


AustAsia Group Altman Z-Score Related Terms

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AustAsia Group (HKSE:02425) Business Description

Traded in Other Exchanges
N/A
Address
North of Guangqing Road, Ding Zhuang Town Guangrao County, Shandong Province, Dongying, CHN
AustAsia Group Ltd is a dairy farm operators in China. The company's two main business segments are raw milk business and beef cattle business. It is also engaged in an ancillary business, namely the sales of milk products under our own brand AustAsia. Its integrated farming model includes dairy cow breeding and farming, raw milk production, and sales of raw milk, and beef cattle breeding and farming, and sales of beef cattle.
Executives
Santosa Gabriella 2501 Other
Fusion Investment Holdings Limited 2201 Interest of corporation controlled by you
Rangi Management Limited 2501 Other
Meiji (china) Inevestment Company, Limited. 2101 Beneficial owner
Santosa Renaldo 2501 Other
Kolonas Rachel Anastasia 2307 Founder of a discretionary trust who can infl
Morze International Limited 2101 Beneficial owner
Hall Martin John 2201 Interest of corporation controlled by you
Highvern Trustees Limited 2501 Other
Mnm Holdings Limited 2201 Interest of corporation controlled by you
Rive Naomi Julia 2201 Interest of corporation controlled by you

AustAsia Group (HKSE:02425) Headlines

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