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Herbalife Nutrition Altman Z-Score

: 2.68 (As of Today)
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Warning Sign:

Altman Z-score of 2.67 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.

Herbalife Nutrition has a Altman Z-Score of 2.68, indicating it is in Grey Zones. This implies that Herbalife Nutrition 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 Herbalife Nutrition's Altman Z-Score or its related term are showing as below:

HLF' s Altman Z-Score Range Over the Past 10 Years
Min: 1.69   Med: 4.05   Max: 9.37
Current: 2.67

During the past 13 years, Herbalife Nutrition's highest Altman Z-Score was 9.37. The lowest was 1.69. And the median was 4.05.


Herbalife Nutrition Altman Z-Score Historical Data

The historical data trend for Herbalife Nutrition'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.

Herbalife Nutrition Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.56 3.78 3.97 3.32 3.05

Herbalife Nutrition Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 3.41 3.25 3.05 2.77 2.58

Competitive Comparison

For the Packaged Foods subindustry, Herbalife Nutrition'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.

   

Herbalife Nutrition Altman Z-Score Distribution

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

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



Herbalife Nutrition 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.

Herbalife Nutrition'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*0.1341+1.4*-0.3673+3.3*0.2097+0.6*0.6494+1.0*1.9545
=2.68

* 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. 2022:
Total Assets was $2,803 Mil.
Total Current Assets was $1,430 Mil.
Total Current Liabilities was $1,054 Mil.
Retained Earnings was $-1,029 Mil.
Pre-Tax Income was 124.1 + 123.4 + 47.6 + 151.7 = $447 Mil.
Interest Expense was -33.2 + -31.4 + -37.6 + -38.8 = $-141 Mil.
Revenue was 1392.7 + 1335.8 + 1318 + 1430.9 = $5,477 Mil.
Market Cap (Today) was $2,739 Mil.
Total Liabilities was $4,218 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
=(1430 - 1054.3)/2802.5
=0.1341

X2=Retained Earnings/Total Assets
=-1029.3/2802.5
=-0.3673

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(446.8 - -141)/2802.5
=0.2097

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=2739.120/4217.9
=0.6494

X5=Revenue/Total Assets
=5477.4/2802.5
=1.9545

The zones of discrimination were as such:

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

Herbalife Nutrition has a Altman Z-Score of 2.68 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Herbalife Nutrition  (NYSE:HLF) 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.


Herbalife Nutrition Altman Z-Score Related Terms

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


Herbalife Nutrition Business Description

Herbalife Nutrition logo
Traded in Other Exchanges
Address
Ugland House, South Church Street, P.O. Box 309GT, Grand Cayman, CYM
Herbalife Nutrition Ltd is an international nutrition company. The company has five revenue segments: weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature, promotional, and other. The most important segment, weight management, contributing more than 50% of revenue, has as representative products protein drinks, powder, and bars, and herbal tea concentrates, among others. The targeted nutrition segment offers dietary and nutritional supplements rich in herbs, minerals, and vitamins. Energy, sports, and fitness offers energy drinks, while outer nutrition offers facial skin-care, body-care, and hair-care products. Geographically, the main segments are North America, Mexico, South and Central America, EMEA, Asia-Pacific, and China.
Executives
Del Genes Celine director 800 WEST OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Mulligan Donal L director ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426
Jones Kevin M. director 1 FANATICAL PLACE CITY OF WINDCREST SAN ANTONIO TX 78218
L'helias Sophie director 800 WEST OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Irani Jehangir D officer: Principal Accounting Officer 800 WEST OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Agwunobi John O officer: Co-President/Chief H&N Officer 4800 NORTH SCOTTSDALE ROAD SCOTTSDALE AZ 85251
Wang Henry C officer: EVP, General Counsel 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Graziano Nick director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Palau Hernandez Margarita director 300 N. SAN RAFAEL AVE. PASADENA CA 91105
Lefevre Alan W director HERBALIFE NUTRITION 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Mendoza Juan Miguel director 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Guo Woody officer: SVP, Managing Director, China 800 W. OLYMPIC BLVD., SUITE #406 LOS ANGELES CA 90015
Amezquita Alexander officer: SVP, Finance & Strat. Planning 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Harms Thomas officer: SVP, China & APAC 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Schissel Mark J officer: EVP, WW Operations 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015

Herbalife Nutrition Headlines

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