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Heineken Holding NV (Heineken Holding NV) Altman Z-Score : 1.31 (As of Apr. 25, 2024)


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What is Heineken Holding NV Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of 1.31 is in distress zone. This implies bankruptcy possibility in the next two years.

Heineken Holding NV has a Altman Z-Score of 1.31, 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 Heineken Holding NV's Altman Z-Score or its related term are showing as below:

HKHHF' s Altman Z-Score Range Over the Past 10 Years
Min: 1.16   Med: 1.39   Max: 1.46
Current: 1.31

During the past 13 years, Heineken Holding NV's highest Altman Z-Score was 1.46. The lowest was 1.16. And the median was 1.39.


Heineken Holding NV Altman Z-Score Historical Data

The historical data trend for Heineken Holding NV'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.

Heineken Holding NV Altman Z-Score Chart

Heineken Holding NV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.41 1.16 1.43 1.42 1.31

Heineken Holding NV Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Altman Z-Score Get a 7-Day Free Trial 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 1.43 - 1.42 - 1.31

Competitive Comparison of Heineken Holding NV's Altman Z-Score

For the Beverages - Brewers subindustry, Heineken Holding NV'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.


Heineken Holding NV's Altman Z-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Heineken Holding NV's Altman Z-Score distribution charts can be found below:

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



Heineken Holding NV 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.

Heineken Holding NV'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*-0.0626+1.4*0.1689+3.3*0.0577+0.6*0.6692+1.0*0.5545
=1.31

* 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 Dec. 2023:
Total Assets was $59,714 Mil.
Total Current Assets was $12,431 Mil.
Total Current Liabilities was $16,167 Mil.
Retained Earnings was $10,085 Mil.
Pre-Tax Income was $2,750 Mil.
Interest Expense was $-698 Mil.
Revenue was $33,110 Mil.
Market Cap (Today) was $23,619 Mil.
Total Liabilities was $35,293 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
=(12430.752 - 16166.848)/59714.286
=-0.0626

X2=Retained Earnings/Total Assets
=10085.06/59714.286
=0.1689

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2750.273 - -697.928)/59714.286
=0.0577

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=23619.103/35293.348
=0.6692

X5=Revenue/Total Assets
=33110.142/59714.286
=0.5545

The zones of discrimination were as such:

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

Heineken Holding NV has a Altman Z-Score of 1.31 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.


Heineken Holding NV  (OTCPK:HKHHF) 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.


Heineken Holding NV Altman Z-Score Related Terms

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Heineken Holding NV (Heineken Holding NV) Business Description

Address
Tweede Weteringplantsoen 5, Amsterdam, NH, NLD, 1017 ZD
Heineken Holding NV holds more than 50% of Heineken NV's issued shares. It does not engage in operational activities and generates income almost exclusively by receiving Heineken dividends. Heineken Holding NV has five segments: Europe, Americas, Africa, Middle East & Eastern Europe, and Asia-Pacific. Heineken NV brews and sells more than 200 brands of beer in nearly 200 countries. Notable brands include Heineken, Amstel, Dos Equis, Tecate, Goldberg, Red Stripe, Legunitas, and Tiger. Close to half of Heineken NV's revenue comes from Europe, and nearly one third of its revenue comes from the Americas. The remaining revenue is split among the Asia-Pacific, Africa, and Middle East and Eastern Europe regions.