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Shandong Jincheng Pharmaceutical Group Co (SZSE:300233) Altman Z-Score : 2.85 (As of Dec. 13, 2024)


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What is Shandong Jincheng Pharmaceutical Group 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 2.88 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.

Shandong Jincheng Pharmaceutical Group Co has a Altman Z-Score of 2.85, indicating it is in Grey Zones. This implies that Shandong Jincheng Pharmaceutical Group 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 Shandong Jincheng Pharmaceutical Group Co's Altman Z-Score or its related term are showing as below:

SZSE:300233' s Altman Z-Score Range Over the Past 10 Years
Min: 2.88   Med: 4.98   Max: 10.89
Current: 2.88

During the past 13 years, Shandong Jincheng Pharmaceutical Group Co's highest Altman Z-Score was 10.89. The lowest was 2.88. And the median was 4.98.


Shandong Jincheng Pharmaceutical Group Co Altman Z-Score Historical Data

The historical data trend for Shandong Jincheng Pharmaceutical Group 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.

Shandong Jincheng Pharmaceutical Group Co Altman Z-Score Chart

Shandong Jincheng Pharmaceutical Group 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 4.30 3.53 4.73 3.56 2.89

Shandong Jincheng Pharmaceutical Group 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 3.04 2.89 2.88 2.95 2.95

Competitive Comparison of Shandong Jincheng Pharmaceutical Group Co's Altman Z-Score

For the Chemicals subindustry, Shandong Jincheng Pharmaceutical Group 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.


Shandong Jincheng Pharmaceutical Group Co's Altman Z-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Shandong Jincheng Pharmaceutical Group Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Shandong Jincheng Pharmaceutical Group Co's Altman Z-Score falls into.



Shandong Jincheng Pharmaceutical Group 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.

Shandong Jincheng Pharmaceutical Group 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*0.1556+1.4*0.1562+3.3*0.0475+0.6*2.776+1.0*0.6219
=2.85

* 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 ¥5,604 Mil.
Total Current Assets was ¥2,212 Mil.
Total Current Liabilities was ¥1,340 Mil.
Retained Earnings was ¥876 Mil.
Pre-Tax Income was 32.942 + 48.445 + 115.555 + 49.106 = ¥246 Mil.
Interest Expense was -4.477 + -5.219 + -4.852 + -5.732 = ¥-20 Mil.
Revenue was 756.74 + 826.882 + 931.697 + 969.56 = ¥3,485 Mil.
Market Cap (Today) was ¥5,113 Mil.
Total Liabilities was ¥1,842 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
=(2211.714 - 1339.989)/5603.94
=0.1556

X2=Retained Earnings/Total Assets
=875.502/5603.94
=0.1562

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(246.048 - -20.28)/5603.94
=0.0475

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=5113.209/1841.915
=2.776

X5=Revenue/Total Assets
=3484.879/5603.94
=0.6219

The zones of discrimination were as such:

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

Shandong Jincheng Pharmaceutical Group Co has a Altman Z-Score of 2.85 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.


Shandong Jincheng Pharmaceutical Group Co  (SZSE:300233) 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.


Shandong Jincheng Pharmaceutical Group Co Altman Z-Score Related Terms

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Shandong Jincheng Pharmaceutical Group Co Business Description

Traded in Other Exchanges
N/A
Address
No. 1 Shuangshan Road, Zichuan Economic Development Zone, Shandong, Zibo, CHN, 255100
Shandong Jincheng Pharmaceutical Group Co Ltd is engaged in the research and development, production and sale of III and IV cephalosporin intermediates and biopharmaceuticals. It offers characteristic bulk drugs, pharmaceutical intermediates, and fine chemicals. The company distributes its products within domestic market and to overseas markets.
Executives
Yang Xiu Liang Executives
Zhang Xue Bo Director
Zheng Geng Xiu Director
Zhao Ye Qing Director
Sun Rui Mei Executives
Cui Xi Li Executives
Zhao Hong Fu Director
Fu Miao Qing Executives
Zhu Xiao Gang Directors, executives
Li Jia Quan Directors, executives
Guo Fang Shui Supervisors
Chou Qiang Securities Affairs Representative

Shandong Jincheng Pharmaceutical Group Co Headlines

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