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Toho Co (TSE:9602) Altman Z-Score : 6.59 (As of Dec. 12, 2024)


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What is Toho 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 6.46 is strong.

Toho Co has a Altman Z-Score of 6.59, 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 Toho Co's Altman Z-Score or its related term are showing as below:

TSE:9602' s Altman Z-Score Range Over the Past 10 Years
Min: 4.94   Med: 6.48   Max: 8.11
Current: 6.46

During the past 13 years, Toho Co's highest Altman Z-Score was 8.11. The lowest was 4.94. And the median was 6.48.


Toho Co Altman Z-Score Historical Data

The historical data trend for Toho 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.

Toho Co Altman Z-Score Chart

Toho Co Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.83 7.08 7.57 6.69 5.96

Toho Co Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 7.07 7.06 5.96 5.37 5.83

Competitive Comparison of Toho Co's Altman Z-Score

For the Entertainment subindustry, Toho 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.


Toho Co's Altman Z-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Toho Co's Altman Z-Score distribution charts can be found below:

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



Toho 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.

Toho 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*0.164+1.4*0.728+3.3*0.1182+0.6*7.4928+1.0*0.4917
=6.59

* 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 Aug. 2024:
Total Assets was 円625,153 Mil.
Total Current Assets was 円194,507 Mil.
Total Current Liabilities was 円91,967 Mil.
Retained Earnings was 円455,128 Mil.
Pre-Tax Income was 16280 + 23362 + 22719 + 11510 = 円73,871 Mil.
Interest Expense was -25 + -13 + -2 + -3 = 円-43 Mil.
Revenue was 77705 + 85976 + 80247 + 63458 = 円307,386 Mil.
Market Cap (Today) was 円1,143,163 Mil.
Total Liabilities was 円152,569 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
=(194507 - 91967)/625153
=0.164

X2=Retained Earnings/Total Assets
=455128/625153
=0.728

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(73871 - -43)/625153
=0.1182

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1143162.867/152569
=7.4928

X5=Revenue/Total Assets
=307386/625153
=0.4917

The zones of discrimination were as such:

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

Toho Co has a Altman Z-Score of 6.59 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.


Toho Co  (TSE:9602) 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.


Toho Co Altman Z-Score Related Terms

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Toho Co Business Description

Traded in Other Exchanges
Address
1-2-2 Yurakucho Chiyoda-ku, Tokyo, JPN, 100-8415
Toho Co Ltd is a diversified media company, with interests in the film and theater businesses. The company operates through three primary business segments: movie, theater, and real estate. The movie segment generates the vast majority of its revenue and is involved in the production and distribution of feature films. The theater segment is involved in planning, producing, and performing stage productions. The corporate real estate segment leases land and buildings. The company generates the vast majority of its revenue in Japan.

Toho Co Headlines

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