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Compagnie Financiere Richemont Altman Z-Score

: 3.53 (As of Today)
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Good Sign:

Altman Z-score of 3.56 is strong.

Compagnie Financiere Richemont has a Altman Z-Score of 3.53, 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 Compagnie Financiere Richemont's Altman Z-Score or its related term are showing as below:

CFRHF' s Altman Z-Score Range Over the Past 10 Years
Min: 2.97   Med: 6.23   Max: 8.63
Current: 3.56

During the past 13 years, Compagnie Financiere Richemont's highest Altman Z-Score was 8.63. The lowest was 2.97. And the median was 6.23.


Compagnie Financiere Richemont Altman Z-Score Historical Data

The historical data trend for Compagnie Financiere Richemont'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.

Compagnie Financiere Richemont Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.25 4.05 2.97 3.16 3.65

Compagnie Financiere Richemont Semi-Annual Data
Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 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 2.97 - 3.16 - 3.65

Competitive Comparison

For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.

   

Compagnie Financiere Richemont Altman Z-Score Distribution

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

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



Compagnie Financiere Richemont 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.

Compagnie Financiere Richemont'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*0.3721+1.4*0.39+3.3*0.0693+0.6*3.0515+1.0*0.4797
=3.53

* 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 $44,037 Mil.
Total Current Assets was $27,956 Mil.
Total Current Liabilities was $11,572 Mil.
Retained Earnings was $17,175 Mil.
Pre-Tax Income was $2,838 Mil.
Interest Expense was $-214 Mil.
Revenue was $21,124 Mil.
Market Cap (Today) was $67,627 Mil.
Total Liabilities was $22,162 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
=(27955.947136564 - 11571.585903084)/44037.444933921
=0.3721

X2=Retained Earnings/Total Assets
=17175.110132159/44037.444933921
=0.39

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2838.1057268722 - -213.6563876652)/44037.444933921
=0.0693

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=67626.870/22161.894273128
=3.0515

X5=Revenue/Total Assets
=21124.449339207/44037.444933921
=0.4797

The zones of discrimination were as such:

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

Compagnie Financiere Richemont has a Altman Z-Score of 3.53 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.


Compagnie Financiere Richemont  (OTCPK:CFRHF) 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.


Compagnie Financiere Richemont Altman Z-Score Related Terms

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


Compagnie Financiere Richemont Business Description

Compagnie Financiere Richemont logo
Address
50, Chemin de la Chenaie, CP 30, Bellevue, Geneva, CHE, 1293
Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up over 70% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 56% of revenue and over 95% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc. Online businesses include Yoox Net-a-Porter.

Compagnie Financiere Richemont Headlines

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