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HRGSF (The Hour Glass) Altman Z-Score : 3.01 (As of Sep. 22, 2024)


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What is The Hour Glass 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 4.26 is strong.

The Hour Glass has a Altman Z-Score of 3.01, 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 The Hour Glass's Altman Z-Score or its related term are showing as below:

HRGSF' s Altman Z-Score Range Over the Past 10 Years
Min: 2.71   Med: 4.88   Max: 6.06
Current: 4.26

During the past 13 years, The Hour Glass's highest Altman Z-Score was 6.06. The lowest was 2.71. And the median was 4.88.


The Hour Glass Altman Z-Score Historical Data

The historical data trend for The Hour Glass'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.

The Hour Glass Altman Z-Score Chart

The Hour Glass Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.71 2.99 4.89 5.35 4.34

The Hour Glass Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
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 4.89 - 5.35 - 4.34

Competitive Comparison of The Hour Glass's Altman Z-Score

For the Luxury Goods subindustry, The Hour Glass'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.


The Hour Glass's Altman Z-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Hour Glass's Altman Z-Score distribution charts can be found below:

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



The Hour Glass 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.

The Hour Glass'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*0.3462+1.4*0+3.3*0.1866+0.6*1.6428+1.0*0.9977
=3.01

* 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 Mar. 2024:
Total Assets was $844.59 Mil.
Total Current Assets was $438.19 Mil.
Total Current Liabilities was $145.78 Mil.
Retained Earnings was $0.00 Mil.
Pre-Tax Income was $152.62 Mil.
Interest Expense was $-4.98 Mil.
Revenue was $842.62 Mil.
Market Cap (Today) was $330.73 Mil.
Total Liabilities was $201.32 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
=(438.187 - 145.775)/844.592
=0.3462

X2=Retained Earnings/Total Assets
=0/844.592
=0

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(152.623 - -4.982)/844.592
=0.1866

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=330.734/201.322
=1.6428

X5=Revenue/Total Assets
=842.62/844.592
=0.9977

The zones of discrimination were as such:

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

The Hour Glass has a Altman Z-Score of 3.01 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.


The Hour Glass  (GREY:HRGSF) 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.


The Hour Glass Altman Z-Score Related Terms

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The Hour Glass Business Description

Traded in Other Exchanges
Address
302 Orchard Road, No. 11-01 Tong Building, Singapore, SGP, 238862
The Hour Glass Ltd is a Singapore-based investment holding company. The company is engaged in the retailing and distribution of watches, jewellery and other luxury products. It also invests in properties. The company's geographical segments include South East Asia and Oceania; and North East Asia. It generates maximum revenue from South East Asia and Oceania segment. Some of its brands include A. Lange & Sohne, Blancpain, Cartier, Hublot, Rolex, and others.

The Hour Glass Headlines

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