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Guangzhou Hongmian Zhihui Science and Technology Innovation Co (SZSE:000523) Altman Z-Score : 1.91 (As of Oct. 31, 2024)


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What is Guangzhou Hongmian Zhihui Science and Technology Innovation 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.

Warning Sign:

Altman Z-score of 1.92 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Guangzhou Hongmian Zhihui Science and Technology Innovation Co has a Altman Z-Score of 1.91, indicating it is in Grey Zones. This implies that Guangzhou Hongmian Zhihui Science and Technology Innovation Co 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 Guangzhou Hongmian Zhihui Science and Technology Innovation Co's Altman Z-Score or its related term are showing as below:

SZSE:000523' s Altman Z-Score Range Over the Past 10 Years
Min: -7.22   Med: 2.84   Max: 5.07
Current: 1.92

During the past 13 years, Guangzhou Hongmian Zhihui Science and Technology Innovation Co's highest Altman Z-Score was 5.07. The lowest was -7.22. And the median was 2.84.


Guangzhou Hongmian Zhihui Science and Technology Innovation Co Altman Z-Score Historical Data

The historical data trend for Guangzhou Hongmian Zhihui Science and Technology Innovation 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.

Guangzhou Hongmian Zhihui Science and Technology Innovation Co Altman Z-Score Chart

Guangzhou Hongmian Zhihui Science and Technology Innovation 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 1.41 -5.80 3.86 1.41 2.06

Guangzhou Hongmian Zhihui Science and Technology Innovation Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.99 2.06 1.92 1.51 1.87

Competitive Comparison of Guangzhou Hongmian Zhihui Science and Technology Innovation Co's Altman Z-Score

For the Household & Personal Products subindustry, Guangzhou Hongmian Zhihui Science and Technology Innovation 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.


Guangzhou Hongmian Zhihui Science and Technology Innovation Co's Altman Z-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Guangzhou Hongmian Zhihui Science and Technology Innovation Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Guangzhou Hongmian Zhihui Science and Technology Innovation Co's Altman Z-Score falls into.



Guangzhou Hongmian Zhihui Science and Technology Innovation 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.

Guangzhou Hongmian Zhihui Science and Technology Innovation 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*0.3752+1.4*-0.924+3.3*0.0476+0.6*3.3263+1.0*0.6026
=1.91

* 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. 2024:
Total Assets was ¥3,458 Mil.
Total Current Assets was ¥1,894 Mil.
Total Current Liabilities was ¥596 Mil.
Retained Earnings was ¥-3,195 Mil.
Pre-Tax Income was 37.559 + 30.998 + 37.614 + 8.331 = ¥115 Mil.
Interest Expense was -7.897 + -8.111 + -7.714 + -26.363 = ¥-50 Mil.
Revenue was 472.14 + 573.21 + 538.465 + 499.875 = ¥2,084 Mil.
Market Cap (Today) was ¥6,020 Mil.
Total Liabilities was ¥1,810 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
=(1893.782 - 596.234)/3457.834
=0.3752

X2=Retained Earnings/Total Assets
=-3195.036/3457.834
=-0.924

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(114.502 - -50.085)/3457.834
=0.0476

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=6020.337/1809.905
=3.3263

X5=Revenue/Total Assets
=2083.69/3457.834
=0.6026

The zones of discrimination were as such:

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

Guangzhou Hongmian Zhihui Science and Technology Innovation Co has a Altman Z-Score of 1.91 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.


Guangzhou Hongmian Zhihui Science and Technology Innovation Co  (SZSE:000523) 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.


Guangzhou Hongmian Zhihui Science and Technology Innovation Co Altman Z-Score Related Terms

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Guangzhou Hongmian Zhihui Science and Technology Innovation Co Business Description

Traded in Other Exchanges
N/A
Address
No. 128 Huangpu Avenue East, Tianhe District, Guangzhou, Guangdong, CHN, 510660
Guangzhou Hongmian Zhihui Science and Technology Innovation Co Ltd formerly Lonkey Industrial Co Ltd is engaged in the manufacturing of detergents. The products of the company include washing powder, liquid detergent, soap, and daily cleaning materials.
Executives
Liao Jian Supervisors
Wang Zhi Gang Secretary Dong
Wang Ying Jie Executives
Chen Wen Executives
Chen Jian Bin Directors, executives
Cheng Zhi Bin Executives
Chen Tao Executives
Li Yun Supervisors
Fu Yong Guo Directors, executives
Chen Shu Xu Executives
He Wei Wen Supervisors

Guangzhou Hongmian Zhihui Science and Technology Innovation Co Headlines

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