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Molson Coors Beverage Co (Molson Coors Beverage Co) Altman Z-Score : 1.53 (As of Jun. 25, 2024)


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What is Molson Coors Beverage 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 1.53 is in distress zone. This implies bankruptcy possibility in the next two years.

Molson Coors Beverage Co has a Altman Z-Score of 1.53, 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 Molson Coors Beverage Co's Altman Z-Score or its related term are showing as below:

TAP' s Altman Z-Score Range Over the Past 10 Years
Min: 0.98   Med: 1.41   Max: 3.37
Current: 1.53

During the past 13 years, Molson Coors Beverage Co's highest Altman Z-Score was 3.37. The lowest was 0.98. And the median was 1.41.


Molson Coors Beverage Co Altman Z-Score Historical Data

The historical data trend for Molson Coors Beverage 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.

Molson Coors Beverage Co Altman Z-Score Chart

Molson Coors Beverage 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 1.22 0.98 1.32 1.29 1.57

Molson Coors Beverage 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 1.29 1.46 1.50 1.57 1.69

Competitive Comparison of Molson Coors Beverage Co's Altman Z-Score

For the Beverages - Brewers subindustry, Molson Coors Beverage 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.


Molson Coors Beverage Co's Altman Z-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Molson Coors Beverage Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Molson Coors Beverage Co's Altman Z-Score falls into.



Molson Coors Beverage 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.

Molson Coors Beverage 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*-0.0455+1.4*0.2914+3.3*0.0619+0.6*0.8547+1.0*0.4584
=1.53

* 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 $26,072 Mil.
Total Current Assets was $2,677 Mil.
Total Current Liabilities was $3,863 Mil.
Retained Earnings was $7,597 Mil.
Pre-Tax Income was 265.4 + 165.5 + 544 + 441.1 = $1,416 Mil.
Interest Expense was -48.4 + -46.1 + -48.8 + -54.6 = $-198 Mil.
Revenue was 2596.4 + 2790.8 + 3298.4 + 3266.6 = $11,952 Mil.
Market Cap (Today) was $10,867 Mil.
Total Liabilities was $12,714 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
=(2677 - 3863)/26072.3
=-0.0455

X2=Retained Earnings/Total Assets
=7597.4/26072.3
=0.2914

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1416 - -197.9)/26072.3
=0.0619

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=10866.955/12714.1
=0.8547

X5=Revenue/Total Assets
=11952.2/26072.3
=0.4584

The zones of discrimination were as such:

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

Molson Coors Beverage Co has a Altman Z-Score of 1.53 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.


Molson Coors Beverage Co  (NYSE:TAP) 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.


Molson Coors Beverage Co Altman Z-Score Related Terms

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Molson Coors Beverage Co (Molson Coors Beverage Co) Business Description

Traded in Other Exchanges
Address
NH353, P.O. Box 4030, Golden, CO, USA, 80401
Molson Coors owns well-known beer brands including Miller, Coors, Blue Moon, and Carling, and ranks as the second largest beer maker in both value and volume terms in the U.S., Canada, and the United Kingdom. Through licensing agreements, it also brews and distributes beer and hard seltzer under partner brands from Heineken, Anheuser-Busch InBev, Asahi, and Coca-Cola. The company uses independent distributors in the U.S. given the three-tier distribution requirements, while using a combination of distributors and an in-house sales team in Canada and Europe. North America remains its largest market contributing over 80% of total revenue.
Executives
Winnefeld James A Jr director 870 WINTER STREET, WALTHAM MA 02451
Natalie G. Maciolek officer: Chief Legal & Govt Affairs Off 3939 W HIGHLAND BLVD, MILWAUKEE WI 53208
Geoffrey E. Molson director 1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
Williams Leroy James Jr director 10 LONGS PEAK DRIVE, BROOMFIELD CO 80021-2510
Anne-marie W D'angelo officer: Chief Legal & Govt Affairs Off 801 E. 86TH AVENUE, MERRILLVILLE IN 46410
Louis Vachon director 1155 METCALFE STREET, MONTREAL QUEBEC CANADA E6 0000
Julia M Brown director C/O ABLE BRANDS CO., 30 HUDSON YARDS, NEW YORK NY 10001
Simon Cox officer: Pres&CEO, Molson Coors Europe 1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
Roxanne Stelter officer: VP,Controller & Chf Acct Off 3939 W HIGHLAND BLVD, MILWAUKEE WI 53208
Andrew Thomas Molson director 1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
David S. Coors director P.O. BOX 4030, NH353, GOLDEN CO 80401
Nessa O'sullivan director P.O. BOX 4030, NH353, GOLDEN CO 80401
Peter H Coors director, other: Chairman of the Board 1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
Peter John Marino officer: President of Emerging Growth 250 SOUTH WACKER DRIVE, CHICAGO IL 60606
Jacques Michelle St. officer: Chief Marketing Officer 250 SOUTH WACKER DRIVE, CHICAGO IL 60606