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MercadoLibre Altman Z-Score

: 8.70 (As of Today)
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Good Sign:

Altman Z-score of 8.7 is strong.

MercadoLibre has a Altman Z-Score of 8.70, 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 MercadoLibre's Altman Z-Score or its related term are showing as below:

NAS:MELI' s Altman Z-Score Range Over the Past 10 Years
Min: -0.54   Med: 8.92   Max: 46.98
Current: 8.7

-0.54
46.98

During the past 13 years, MercadoLibre's highest Altman Z-Score was 46.98. The lowest was -0.54. And the median was 8.92.


MercadoLibre Altman Z-Score Historical Data

The historical data trend for MercadoLibre'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.

MercadoLibre Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.35 7.75 5.30 7.38 11.37

MercadoLibre Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Altman Z-Score 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 Premium Member Only Premium Member Only Premium Member Only 9.38 9.36 11.37 9.74 8.97

Competitive Comparison

For the Internet Retail subindustry, MercadoLibre'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.

   

MercadoLibre Altman Z-Score Distribution

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

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



MercadoLibre 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.

MercadoLibre'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*0.1137+1.4*0.0567+3.3*0.056+0.6*12.3325+1.0*0.8993
=8.70

* 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 Jun. 2021:
Total Assets was $6,143 Mil.
Total Current Assets was $4,568 Mil.
Total Current Liabilities was $3,869 Mil.
Retained Earnings was $348 Mil.
Pre-Tax Income was 138.897 + 9.537 + -44.015 + 52.67 = $157 Mil.
Interest Expense was -39.342 + -91.289 + -31.607 + -24.522 = $-187 Mil.
Revenue was 1702.75 + 1378.441 + 1327.304 + 1115.701 = $5,524 Mil.
Market Cap (Today) was $74,755 Mil.
Total Liabilities was $6,062 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
=(4567.651 - 3869.29)/6142.694
=0.1137

X2=Retained Earnings/Total Assets
=348.298/6142.694
=0.0567

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(157.089 - -186.76)/6142.694
=0.056

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=74755.385/6061.664
=12.3325

X5=Revenue/Total Assets
=5524.196/6142.694
=0.8993

The zones of discrimination were as such:

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

MercadoLibre has a Altman Z-Score of 8.70 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.


MercadoLibre  (NAS:MELI) 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.


MercadoLibre Altman Z-Score Related Terms

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


MercadoLibre Business Description

MercadoLibre logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 454110 SIC : 5961
Address
Pasaje Posta 4789, 6th Floor, Buenos Aires, ARG, C1430EKG
Founded in 1999, MercadoLibre's commerce segment (representing 64% of net revenue in 2020) includes online marketplaces in more than a dozen Latin American countries, display and paid search advertising capabilities (MercadoClics), online store management services (MercadoShops), and third-party logistics solutions (MercadoEnvios). Its fintech segment includes an online/offline payment-processing platform (MercadoPago), mobile wallet platform, credit solutions for buyers/sellers, and asset management offerings (Mercado Fondo). The company derives more than 95% of its revenue from Brazil, Argentina, and Mexico.
Executives
Aguzin Alejandro Nicolas director ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430DNN
Calemzuk Emiliano director C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Segal Susan director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SEGAL SUSAN a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Vazquez Mario director TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 430DNN
Malka Meyer director C/O MERCADOLIBRE, INC. ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1C1430CRG
Sallouti Roberto Balls director ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1 C1430CRG
Galperin Marcos director, officer: President and CEO C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Tolda Stelleo officer: Executive VP and COO C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Ebay Inc 10 percent owner 2025 HAMILTON AVENUE SAN JOSE CA 95125
Rabinovich Daniel officer: EVP-Chief Technology Officer ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430CRG
Melamud Marcelo officer: VP - Chief Accounting Officer TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Spence A Michael director 121 INNOVATION DR STE 200 IRVINE CA 92612
Arnt Pedro officer: Executive VP and CFO ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430CRG
Osvaldo Gimenez officer: Executive VP - Payments TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Olivan Javier director 62 RIDGE VIEW DRIVE ATHERTON X1 94027

MercadoLibre Headlines

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