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GEA Group AG Altman Z-Score

: 2.45 (As of Today)
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Warning Sign:

Altman Z-score of 2.5 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

GEA Group AG has a Altman Z-Score of 2.45, indicating it is in Grey Zones. This implies that GEA Group AG 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 GEA Group AG's Altman Z-Score or its related term are showing as below:

OTCPK:GEAGF' s Altman Z-Score Range Over the Past 10 Years
Min: 1.56   Med: 2.08   Max: 3.31
Current: 2.5

1.56
3.31

During the past 13 years, GEA Group AG's highest Altman Z-Score was 3.31. The lowest was 1.56. And the median was 2.08.


GEA Group AG Altman Z-Score Historical Data

The historical data trend for GEA Group AG'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.

GEA Group AG 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 2.84 2.68 2.05 1.87 1.97

GEA Group AG Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 1.94 1.97 2.23 2.20 2.34

Competitive Comparison

For the Specialty Industrial Machinery subindustry, GEA Group AG'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.

   

GEA Group AG Altman Z-Score Distribution

For the Industrial Products industry and Industrials sector, GEA Group AG's Altman Z-Score distribution charts can be found below:

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



GEA Group AG 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.

GEA Group AG'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*0.1362+1.4*0.0448+3.3*0.057+0.6*2.0301+1.0*0.819
=2.45

* 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 Sep. 2021:
Total Assets was $6,800 Mil.
Total Current Assets was $3,483 Mil.
Total Current Liabilities was $2,557 Mil.
Retained Earnings was $305 Mil.
Pre-Tax Income was 137.78 + 116.21686746988 + 67.908333333333 + 33.274939172749 = $355 Mil.
Interest Expense was -6.7682352941176 + -7.3024096385542 + -6.725 + -11.569343065693 = $-32 Mil.
Revenue was 1410.9682352941 + 1392.2493975904 + 1268.344047619 + 1497.3381995134 = $5,569 Mil.
Market Cap (Today) was $8,936 Mil.
Total Liabilities was $4,402 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
=(3483.0011764706 - 2556.8058823529)/6799.8541176471
=0.1362

X2=Retained Earnings/Total Assets
=304.62117647059/6799.8541176471
=0.0448

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(355.18013997596 - -32.364987998365)/6799.8541176471
=0.057

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=8936.369/4401.9752941176
=2.0301

X5=Revenue/Total Assets
=5568.8998800169/6799.8541176471
=0.819

The zones of discrimination were as such:

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

GEA Group AG has a Altman Z-Score of 2.45 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.


GEA Group AG  (OTCPK:GEAGF) 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.


GEA Group AG Altman Z-Score Related Terms

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


GEA Group AG Business Description

GEA Group AG logo
Industry
Industrials » Industrial Products NAICS : 333999 SIC : 3559
Traded in Other Exchanges
Address
Peter-Muller-Strasse 12, Dusseldorf, DEU, 40468
GEA is an expert in food processing. It manufactures equipment for separation, fluid handling, dairy processing, and dairy farming, and designs and constructs process lines or entire plants for customers. Based in Germany, the company is a global market leader, with number-one or number-two positions in its markets. Its separators are used in hundreds of different, tailored applications. Every fourth litre of milk, third instant coffee line, third chicken nugget, and second litre of beer globally is processed using the company's specialised equipment.
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