>
Switch to:

Shin-Etsu Chemical Co Altman Z-Score

: 11.97 (As of Today)
View and export this data going back to 2009. Start your Free Trial

Good Sign:

Altman Z-score of 12.92 is strong.

Shin-Etsu Chemical Co has a Altman Z-Score of 11.97, 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.

OTCPK:SHECF' s Altman Z-Score Range Over the Past 10 Years
Min: 2.4   Med: 6.89   Max: 12.92
Current: 12.92

2.4
12.92

During the past 13 years, Shin-Etsu Chemical Co's highest Altman Z-Score was 12.92. The lowest was 2.40. And the median was 6.89.


Shin-Etsu Chemical Co Altman Z-Score Historical Data

* 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.

Shin-Etsu Chemical Co Annual Data
Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.79 7.60 8.18 7.15 7.77

Shin-Etsu Chemical Co Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
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 9.05 7.77 9.50 9.96 12.72

Competitive Comparison
* 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.


Shin-Etsu Chemical Co Altman Z-Score Distribution

* The bar in red indicates where Shin-Etsu Chemical Co's Altman Z-Score falls into.



Shin-Etsu Chemical Co 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.

Shin-Etsu Chemical Co'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*0.4586+1.4*0.7794+3.3*0.1149+0.6*15.859+1.0*0.4389
=11.97

* 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. 2020:
Total Assets was $31,346 Mil.
Total Current Assets was $17,359 Mil.
Total Current Liabilities was $2,983 Mil.
Retained Earnings was $24,430 Mil.
Pre-Tax Income was 971.14317425083 + 918.70365284263 + 885.29088607171 + 818.6236675388 = $3,594 Mil.
Interest Expense was 0 + 0 + 0 + -6.956615425482 = $-7 Mil.
Revenue was 3659.9091287458 + 3325.9809260434 + 3340.2585282148 + 3431.9983876256 = $13,758 Mil.
Market Cap (Today) was $67,045 Mil.
Total Liabilities was $4,228 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
=(17358.644715748 - 2983.0859230485)/31345.977463312
=0.4586

X2=Retained Earnings/Total Assets
=24429.54009434/31345.977463312
=0.7794

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(3593.761380704 - -6.956615425482)/31345.977463312
=0.1149

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=67045.249/4227.5750709089
=15.859

X5=Revenue/Total Assets
=13758.14697063/31345.977463312
=0.4389

The zones of discrimination were as such:

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

Shin-Etsu Chemical Co has a Altman Z-Score of 11.97 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.


Shin-Etsu Chemical Co  (OTCPK:SHECF) 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.


Shin-Etsu Chemical Co Altman Z-Score Related Terms


Shin-Etsu Chemical Co Altman Z-Score Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)