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 2.05 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.
PT ABM Investama Tbk has a Altman Z-Score of 2.05, indicating it is in Grey Zones. This implies that PT ABM Investama Tbk 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 PT ABM Investama Tbk's Altman Z-Score or its related term are showing as below:
ISX:ABMM'
s Altman Z-Score Range Over the Past 10 Years
Min: 0.79 Med: 1.27 Max: 2.6
Current: 2.05
During the past 13 years, PT ABM Investama Tbk's highest Altman Z-Score was 2.60. The lowest was 0.79. And the median was 1.27.
PT ABM Investama Tbk Altman Z-Score Historical Data
The historical data trend for PT ABM Investama Tbk'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.
Competitive Comparison of PT ABM Investama Tbk's Altman Z-Score
For the Thermal Coal subindustry, PT ABM Investama Tbk'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.
PT ABM Investama Tbk's Altman Z-Score Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, PT ABM Investama Tbk's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where PT ABM Investama Tbk's Altman Z-Score falls into.
PT ABM Investama Tbk 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.
PT ABM Investama Tbk'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
*
-0.0042
+
1.4
*
0.2582
+
3.3
*
0.2184
+
0.6
*
0.483
+
1.0
*
0.685
=
2.05
* 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 Rp33,247,487 Mil. Total Current Assets was Rp9,599,878 Mil. Total Current Liabilities was Rp9,737,990 Mil. Retained Earnings was Rp8,583,455 Mil. Pre-Tax Income was 1094458.413 + 817490.347 + 1661485.2 + 2067547.091 = Rp5,640,981 Mil. Interest Expense was -405008.964 + -473434.242 + -387896.254 + -354378.978 = Rp-1,620,718 Mil. Revenue was 5540554.082 + 5751000.262 + 5639574.283 + 5841996.5 = Rp22,773,125 Mil. Market Cap (Today) was Rp10,406,964 Mil. Total Liabilities was Rp21,547,874 Mil.
* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.
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.
Altman Z-Score does not apply to financial companies.
PT ABM Investama Tbk Altman Z-Score Related Terms
Thank you for viewing the detailed overview of PT ABM Investama Tbk's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
PT ABM Investama Tbk (ISX:ABMM) Business Description
PT ABM Investama Tbk is an integrated energy company. Its business portfolio covers the coal, electricity, logistics and services industries. The company is organized into three key business segments: Mining Contractor and Coal Mining segment, Services segment and Manufacturing segment. The Mining Contractor and Coal Mining segment contributes the vast majority of total revenue. The coal mining and mining contractor businesses are run by two subsidiaries, namely CK and Reswara through its subsidiaries, TIA and MDB (Mifa and BEL). Its Services segment consist of power engines rental service, integrated logistics and vessel rental, and site services and remanufacturing.
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