Teck Resources (Teck Resources) Altman Z-Score

: 1.72 (As of Today)

View and export this data going back to . Start your Free Trial

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 1.75 is in distress zone. This implies bankruptcy possibility in the next two years.

Teck Resources has a Altman Z-Score of 1.72, 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 Teck Resources's Altman Z-Score or its related term are showing as below:

TCKRF' s Altman Z-Score Range Over the Past 10 Years
Min: 0.52 Med: 1.45 Max: 1.94
Current: 1.75

During the past 13 years, Teck Resources's highest Altman Z-Score was 1.94. The lowest was 0.52. And the median was 1.45.

Teck Resources Altman Z-Score Historical Data

The historical data trend for Teck Resources'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.

Teck Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Altman Z-Score

1.27

0.97

1.64

1.89

1.63

Teck Resources Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Altman Z-Score																1.89	1.79	1.77	1.70	1.63

Competitive Comparison

For the Other Industrial Metals & Mining subindustry, Teck Resources'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.

Teck Resources Altman Z-Score Distribution

For the Metals & Mining industry and Basic Materials sector, Teck Resources's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Teck Resources's Altman Z-Score falls into.

Teck Resources 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.

Teck Resources's Altman Z-Score for today is calculated with this formula:

1.2

1.4

3.3

0.6

1.0

1.2

0.0102

1.4

0.3491

3.3

0.073

0.6

1.1921

1.0

0.2659

1.72

Trailing Twelve Months (TTM) ended in Dec. 2023:
Total Assets was $41,885 Mil.
Total Current Assets was $4,819 Mil.
Total Current Liabilities was $4,392 Mil.
Retained Earnings was $14,623 Mil.
Pre-Tax Income was 517.293 + 435.297 + 605.901 + 1356.428 = $2,915 Mil.
Interest Expense was -91.682 + -19.215 + -18.064 + -13.155 = $-142 Mil.
Revenue was 3062.016 + 2659.818 + 2648.653 + 2766.206 = $11,137 Mil.
Market Cap (Today) was $24,793 Mil.
Total Liabilities was $20,797 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
	=	(4818.873 - 4391.771)	/	41885.063
	=	0.0102

X2	=	Retained Earnings	/	Total Assets
	=	14622.838	/	41885.063
	=	0.3491

X3	=	Earnings Before Interest and Taxes	/	Total Assets
	=	(Pre-Tax Income - Interest Expense)	/	Total Assets
	=	(2914.919 - -142.116)	/	41885.063
	=	0.073

X4	=	Market Value Equity	/	Book Value of Total Liabilities
	=	Market Cap	/	Total Liabilities
	=	24792.730	/	20796.81
	=	1.1921

X5	=	Revenue	/	Total Assets
	=	11136.693	/	41885.063
	=	0.2659

The zones of discrimination were as such:

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

Teck Resources has a Altman Z-Score of 1.72 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.

Teck Resources (OTCPK:TCKRF) 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.

Be Aware

Altman Z-Score does not apply to financial companies.

Teck Resources Altman Z-Score Related Terms

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

Teck Resources (Teck Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Teck Resources Ltd (OTCPK:TCKRF) » Definitions » Altman Z-Score

Comparable Companies

Traded in Other Exchanges

TECK:USA TECK:Mexico TPT:Germany TEKB:Germany TPT:Germany TEKB:Germany TECK.B:Canada TECK.A:Canada

Address

550 Burrard Street, Suite 3300, Vancouver, BC, CAN, V6C 0B3

Website

https://www.teck.com

Teck is a diversified miner with coal, copper, and zinc operations in Canada, the United States, Chile, and Peru. Metallurgical coal is Teck's primary commodity in terms of EBITDA contribution, followed by copper and zinc. Teck is the world's second-largest exporter of seaborne metallurgical coal and is a top-three zinc miner. Its major new copper mine in Chile at the majority-owned Quebrada Blanca 2, in partnership with Sumitomo, will drive an increase in Teck's attributable copper production by roughly 80%. Along with a number of additional copper growth options, Teck's strategy is to rebalance its portfolio to low carbon metals such as copper. It sold its oil sands business in early 2023 and has agreed to sell its coal business, with the deal likely closing in the third quarter of 2024.