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CETC Digital Technology Co (SHSE:600850) Altman Z-Score : 3.15 (As of Apr. 27, 2024)


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What is CETC Digital Technology Co 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.

Good Sign:

Altman Z-score of 3.16 is strong.

CETC Digital Technology Co has a Altman Z-Score of 3.15, 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 CETC Digital Technology Co's Altman Z-Score or its related term are showing as below:

SHSE:600850' s Altman Z-Score Range Over the Past 10 Years
Min: 3.05   Med: 3.4   Max: 5.73
Current: 3.16

During the past 13 years, CETC Digital Technology Co's highest Altman Z-Score was 5.73. The lowest was 3.05. And the median was 3.40.


CETC Digital Technology Co Altman Z-Score Historical Data

The historical data trend for CETC Digital Technology Co'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.

CETC Digital Technology Co Altman Z-Score Chart

CETC Digital Technology Co 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 3.50 3.11 3.06 3.05 3.23

CETC Digital Technology Co 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 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 3.05 3.90 3.71 3.74 3.23

Competitive Comparison of CETC Digital Technology Co's Altman Z-Score

For the Software - Infrastructure subindustry, CETC Digital Technology Co'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.


CETC Digital Technology Co's Altman Z-Score Distribution in the Software Industry

For the Software industry and Technology sector, CETC Digital Technology Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where CETC Digital Technology Co's Altman Z-Score falls into.



CETC Digital Technology 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.

CETC Digital Technology 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*0.3651+1.4*0.2896+3.3*0.0514+0.6*2.1016+1.0*0.8754
=3.15

* 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 ¥11,425 Mil.
Total Current Assets was ¥10,425 Mil.
Total Current Liabilities was ¥6,254 Mil.
Retained Earnings was ¥3,308 Mil.
Pre-Tax Income was 269.527 + 162.281 + 78.178 + 60.639 = ¥571 Mil.
Interest Expense was -4.651 + -4.335 + -3.768 + -3.379 = ¥-16 Mil.
Revenue was 3073.555 + 2668.522 + 2288.01 + 1970.798 = ¥10,001 Mil.
Market Cap (Today) was ¥14,047 Mil.
Total Liabilities was ¥6,684 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
=(10424.786 - 6253.922)/11424.659
=0.3651

X2=Retained Earnings/Total Assets
=3308.344/11424.659
=0.2896

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(570.625 - -16.133)/11424.659
=0.0514

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=14046.976/6683.952
=2.1016

X5=Revenue/Total Assets
=10000.885/11424.659
=0.8754

The zones of discrimination were as such:

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

CETC Digital Technology Co has a Altman Z-Score of 3.15 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.


CETC Digital Technology Co  (SHSE:600850) 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.


CETC Digital Technology Co Altman Z-Score Related Terms

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CETC Digital Technology Co (SHSE:600850) Business Description

Traded in Other Exchanges
N/A
Address
1485 Jialuo Road, 6th Floor, Building 43, Jiading District, Shanghai, CHN, 200233
CETC Digital Technology Co Ltd is engaged in the development of information systems and software engineering in China. It is also involved in the design, installation, and construction of computer hardware, communication equipment, electronics, integrated system equipment systems integration, network engineering, software engineering and electronic engineering. Its product and services include Data Center Product Solution, Cloud product solutions, and Cloud service management. The company distributes its products within domestic and overseas markets.

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