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International Flavors & Fragrances Altman Z-Score

: 1.61 (As of Today)
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Warning Sign:

Altman Z-score of 1.61 is in distress zone. This implies bankrupcy possibility in the next two years.

International Flavors & Fragrances has a Altman Z-Score of 1.61, 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 International Flavors & Fragrances's Altman Z-Score or its related term are showing as below:

IFF' s Altman Z-Score Range Over the Past 10 Years
Min: 1.5   Med: 5.02   Max: 12.27
Current: 1.61

During the past 13 years, International Flavors & Fragrances's highest Altman Z-Score was 12.27. The lowest was 1.50. And the median was 5.02.


International Flavors & Fragrances Altman Z-Score Historical Data

The historical data trend for International Flavors & Fragrances'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.

International Flavors & Fragrances 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 5.13 2.33 2.31 2.02 1.83

International Flavors & Fragrances Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 1.50 1.63 1.62 1.83 1.70

Competitive Comparison

For the Specialty Chemicals subindustry, International Flavors & Fragrances'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.

   

International Flavors & Fragrances Altman Z-Score Distribution

For the Chemicals industry and Basic Materials sector, International Flavors & Fragrances's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where International Flavors & Fragrances's Altman Z-Score falls into.



International Flavors & Fragrances 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.

International Flavors & Fragrances'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*0.0874+1.4*0.0927+3.3*0.0249+0.6*1.6269+1.0*0.3124
=1.61

* 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. 2022:
Total Assets was $39,747 Mil.
Total Current Assets was $7,507 Mil.
Total Current Liabilities was $4,032 Mil.
Retained Earnings was $3,683 Mil.
Pre-Tax Income was 285 + 114 + 250 + 44 = $693 Mil.
Interest Expense was -72 + -73 + -74 + -77 = $-296 Mil.
Revenue was 3226 + 3031 + 3071 + 3089 = $12,417 Mil.
Market Cap (Today) was $30,392 Mil.
Total Liabilities was $18,681 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
=(7507 - 4032)/39747
=0.0874

X2=Retained Earnings/Total Assets
=3683/39747
=0.0927

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(693 - -296)/39747
=0.0249

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=30391.982/18681
=1.6269

X5=Revenue/Total Assets
=12417/39747
=0.3124

The zones of discrimination were as such:

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

International Flavors & Fragrances has a Altman Z-Score of 1.61 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.


International Flavors & Fragrances  (NYSE:IFF) 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.


International Flavors & Fragrances Altman Z-Score Related Terms

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


International Flavors & Fragrances Business Description

International Flavors & Fragrances logo
Industry
Basic Materials » Chemicals NAICS : 325199 SIC : 2869
Address
521 West 57th Street, New York, NY, USA, 10019-2960
International Flavors & Fragrances produces ingredients for the food, beverage, health, household goods, personal care, and pharmaceutical industries. The company makes proprietary formulations, partnering with customers to deliver custom solutions. The nourish segment, which generates roughly half of revenue, is a leading flavor producer and also sell texturants, plant-based proteins, and other ingredients. The health and biosciences business, which generates around one fourth of revenue, is a global leader in probiotics and enzymes. IFF is also one of the leading fragrance producers in the world. The firm also sells pharmaceutical ingredients such as excipients and time-release polymers.
Executives
Fibig Andreas director, officer: CEO INTERNATIONAL FLAVORS & FRAGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Jilla Rustom officer: CFO C/O MSC INDUSTRIAL DIRECT CO.,INC. 75 MAXESS ROAD MELVILLE NY 11747
Anderson Robert G. officer: Controller 521 WEST 57TH STREET NEW YORK NY 10019
Fortmann Kathy Lynn officer: Divisional CEO, Taste INTERNATIONAL FLAVORS & FRAGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Gold Christina A director C/O ITT CORPORATION 1133 WESTCHESTER AVENUE WHITE PLAINS NY 10604
Tsai Li-huei director 521 WEST 57TH STREET NEW YORK NY 10019
Suarez Gonzalez Susana officer: EVP, Chief HR Officer 521 WEST 57TH STREET NEW YORK NY 10019
Yep Gregory L officer: EVP, Chief Scientific Officer 521 WEST 57TH STREET NEW YORK NY 10019
Williamson Stephen director 81 WYMAN STREET WALTHAM MA 02451
Haeni Matthias officer: Divisional CEO, Taste 521 WEST 57TH STREET NEW YORK NY 10019
Epstein David R director INTERNATIONAL FLAVORS & FRAGRANCES INC. 521 W. 57TH STREET NEW YORK NY 10019
Fortanet Francisco officer: EVP, Operations 521 WEST 57TH STREET NEW YORK NY 10019
Bottoli Marcello director 11200 EAST 45TH AVE. DENVER CO 80239
Mirzayantz Nicolas officer: Group President Fragrance INTERNATIONAL FLAVORS & FRAGRANCES INC 521 WEST 57TH ST NEW YORK NY 10019
Ducker Michael L director P O BOX 813 LIBERTY CORNER NJ 07938

International Flavors & Fragrances Headlines

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