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Nippon Ski Resort Development Co (TSE:6040) Altman Z-Score : 4.48 (As of Dec. 13, 2024)


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What is Nippon Ski Resort Development 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 4.51 is strong.

Nippon Ski Resort Development Co has a Altman Z-Score of 4.48, 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 Nippon Ski Resort Development Co's Altman Z-Score or its related term are showing as below:

TSE:6040' s Altman Z-Score Range Over the Past 10 Years
Min: 4.03   Med: 8.68   Max: 23.26
Current: 4.51

During the past 11 years, Nippon Ski Resort Development Co's highest Altman Z-Score was 23.26. The lowest was 4.03. And the median was 8.68.


Nippon Ski Resort Development Co Altman Z-Score Historical Data

The historical data trend for Nippon Ski Resort Development 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.

Nippon Ski Resort Development Co Altman Z-Score Chart

Nippon Ski Resort Development Co Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.03 4.68 4.55 7.60 4.51

Nippon Ski Resort Development Co Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
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 7.60 4.12 3.55 4.32 4.51

Competitive Comparison of Nippon Ski Resort Development Co's Altman Z-Score

For the Resorts & Casinos subindustry, Nippon Ski Resort Development 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.


Nippon Ski Resort Development Co's Altman Z-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Nippon Ski Resort Development Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Nippon Ski Resort Development Co's Altman Z-Score falls into.



Nippon Ski Resort Development 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.

Nippon Ski Resort Development 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*0.2313+1.4*0.438+3.3*0.1418+0.6*3.9588+1.0*0.7502
=4.48

* 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 Jul. 2024:
Total Assets was 円10,990 Mil.
Total Current Assets was 円4,047 Mil.
Total Current Liabilities was 円1,505 Mil.
Retained Earnings was 円4,814 Mil.
Pre-Tax Income was -428.04 + 1280.58 + 753.077 + -68.844 = 円1,537 Mil.
Interest Expense was -4.186 + -9.225 + -7.117 + -1.584 = 円-22 Mil.
Revenue was 930.458 + 3397.866 + 2808.123 + 1108.891 = 円8,245 Mil.
Market Cap (Today) was 円15,560 Mil.
Total Liabilities was 円3,931 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
=(4046.705 - 1504.659)/10990.294
=0.2313

X2=Retained Earnings/Total Assets
=4814.087/10990.294
=0.438

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1536.773 - -22.112)/10990.294
=0.1418

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=15560.411/3930.593
=3.9588

X5=Revenue/Total Assets
=8245.338/10990.294
=0.7502

The zones of discrimination were as such:

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

Nippon Ski Resort Development Co has a Altman Z-Score of 4.48 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.


Nippon Ski Resort Development Co  (TSE:6040) 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.


Nippon Ski Resort Development Co Altman Z-Score Related Terms

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Nippon Ski Resort Development Co Business Description

Traded in Other Exchanges
N/A
Address
6329-1, Hokujo, Hakuba-mura Kitaazumi-gun, Nagano, JPN, 399-9301
Nippon Ski Resort Development Co Ltd engages in the management and operation of ski resorts, and relevant facilities and services. It also provides consulting and advisory services on ski resorts, including technical support, business support, rental business support, and other services.

Nippon Ski Resort Development Co Headlines

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