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Zhejiang Double Arrow Rubber Co (SZSE:002381) Altman Z-Score : 2.75 (As of Jun. 08, 2024)


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What is Zhejiang Double Arrow Rubber 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 2.84 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.

Zhejiang Double Arrow Rubber Co has a Altman Z-Score of 2.75, indicating it is in Grey Zones. This implies that Zhejiang Double Arrow Rubber 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 Zhejiang Double Arrow Rubber Co's Altman Z-Score or its related term are showing as below:

SZSE:002381' s Altman Z-Score Range Over the Past 10 Years
Min: 2.51   Med: 5.99   Max: 13.93
Current: 2.84

During the past 13 years, Zhejiang Double Arrow Rubber Co's highest Altman Z-Score was 13.93. The lowest was 2.51. And the median was 5.99.


Zhejiang Double Arrow Rubber Co Altman Z-Score Historical Data

The historical data trend for Zhejiang Double Arrow Rubber 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.

Zhejiang Double Arrow Rubber Co Altman Z-Score Chart

Zhejiang Double Arrow Rubber 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 5.81 5.00 3.92 2.60 2.87

Zhejiang Double Arrow Rubber Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 2.73 2.66 2.76 2.87 2.87

Competitive Comparison of Zhejiang Double Arrow Rubber Co's Altman Z-Score

For the Auto Parts subindustry, Zhejiang Double Arrow Rubber 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.


Zhejiang Double Arrow Rubber Co's Altman Z-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Zhejiang Double Arrow Rubber Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Zhejiang Double Arrow Rubber Co's Altman Z-Score falls into.



Zhejiang Double Arrow Rubber 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.

Zhejiang Double Arrow Rubber 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*0.3522+1.4*0.2524+3.3*0.0795+0.6*1.705+1.0*0.6839
=2.75

* 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 Mar. 2024:
Total Assets was ¥3,828 Mil.
Total Current Assets was ¥2,275 Mil.
Total Current Liabilities was ¥926 Mil.
Retained Earnings was ¥966 Mil.
Pre-Tax Income was 59.562 + 93.062 + 73.591 + 55.741 = ¥282 Mil.
Interest Expense was -5.59 + -5.57 + -5.646 + -5.683 = ¥-22 Mil.
Revenue was 544.122 + 738.48 + 654.448 + 681.093 = ¥2,618 Mil.
Market Cap (Today) was ¥2,803 Mil.
Total Liabilities was ¥1,644 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
=(2274.604 - 926.112)/3828.487
=0.3522

X2=Retained Earnings/Total Assets
=966.352/3828.487
=0.2524

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(281.956 - -22.489)/3828.487
=0.0795

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=2802.838/1643.913
=1.705

X5=Revenue/Total Assets
=2618.143/3828.487
=0.6839

The zones of discrimination were as such:

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

Zhejiang Double Arrow Rubber Co has a Altman Z-Score of 2.75 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.


Zhejiang Double Arrow Rubber Co  (SZSE:002381) 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.


Zhejiang Double Arrow Rubber Co Altman Z-Score Related Terms

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Zhejiang Double Arrow Rubber Co (SZSE:002381) Business Description

Traded in Other Exchanges
N/A
Address
Zhou Quan town Industrial Zone, Tongxiang, Zhejiang, CHN, 314513
Zhejiang Double Arrow Rubber Co Ltd is engaged as manufacturer of conveyor belts. The types of conveyor belts manufactured by company are acid and alkali resistant, high temperature resistant, flame retardant, oil resistant, heat resistant, tear resistant, puncture resistant, cold resistant, energy saving, and aramid.
Executives
Shen Kai Fei Directors, executives
Shen Geng Liang Director
Lang Hong Feng Executives
Yan Hong Bin Supervisors
Shen Hui Min Directors, executives
Yu Ming Song Director
Shen Lin Quan Director
Lu Xin Hui Supervisors
Shen Hong Fa Directors, executives
Yu Bing Ren Supervisors
Shen Hong Ming Supervisors
Chen Bai Song Directors, executives
Wu Jian Qin Directors, executives
Yu Bing Ying Executives
Xu Zhong Wei Securities Affairs Representative

Zhejiang Double Arrow Rubber Co (SZSE:002381) Headlines

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