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Amcor (AMCR) Altman Z-Score : 1.82 (As of Apr. 28, 2024)


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What is Amcor 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 1.82 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.

Amcor has a Altman Z-Score of 1.82, indicating it is in Grey Zones. This implies that Amcor 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 Amcor's Altman Z-Score or its related term are showing as below:

AMCR' s Altman Z-Score Range Over the Past 10 Years
Min: 1.27   Med: 1.95   Max: 2.13
Current: 1.82

During the past 13 years, Amcor's highest Altman Z-Score was 2.13. The lowest was 1.27. And the median was 1.95.


Amcor Altman Z-Score Historical Data

The historical data trend for Amcor'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.

Amcor Altman Z-Score Chart

Amcor Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.59 1.84 1.96 2.01 1.96

Amcor Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 2.13 2.07 1.96 1.93 1.86

Competitive Comparison of Amcor's Altman Z-Score

For the Packaging & Containers subindustry, Amcor'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.


Amcor's Altman Z-Score Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Amcor's Altman Z-Score distribution charts can be found below:

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



Amcor 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.

Amcor'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*0.0591+1.4*0.0475+3.3*0.0688+0.6*1.0208+1.0*0.839
=1.82

* 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 Dec. 2023:
Total Assets was $16,727 Mil.
Total Current Assets was $4,959 Mil.
Total Current Liabilities was $3,970 Mil.
Retained Earnings was $795 Mil.
Pre-Tax Income was 165 + 194 + 252 + 213 = $824 Mil.
Interest Expense was -89 + -85 + -66 + -86 = $-326 Mil.
Revenue was 3251 + 3443 + 3673 + 3667 = $14,034 Mil.
Market Cap (Today) was $12,965 Mil.
Total Liabilities was $12,700 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
=(4959 - 3970)/16727
=0.0591

X2=Retained Earnings/Total Assets
=795/16727
=0.0475

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(824 - -326)/16727
=0.0688

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=12964.729/12700
=1.0208

X5=Revenue/Total Assets
=14034/16727
=0.839

The zones of discrimination were as such:

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

Amcor has a Altman Z-Score of 1.82 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.


Amcor  (NYSE:AMCR) 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.


Amcor Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Amcor's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Amcor (AMCR) Business Description

Address
83 Tower Road North, Warmley, Bristol, GBR, BS30 8XP
Amcor is a global manufacturer of flexible and rigid plastic packaging and provides packaging solutions to the food, beverage, pharmaceuticals, medical, household, personal care, and industrials sectors. Operations span more than 40 countries and over 200 locations. Around half of group sales are derived from North America, one quarter from Europe, and the remainder from emerging markets. Amcor operates two distinct businesses: flexibles and rigids. Flexibles accounts for about 80% of earnings and produces plastic, aluminium, and fibre-based packaging. Rigids accounts for about 20% of earnings and consists primarily of hot-fill and cold-fill polyethylene terephthalate bottling solutions in the North American and Latin American markets.
Executives
Arun Nayar director 9 MARSHAL LANE, WESTON CT 06883
Nicholas T. Long director C/O 9341 COURTLAND DRIVE NE, ROCKFORD MI 49351
Andrea E. Bertone director C/O CORP. SECRETARY, PEABODY ENERGY CORP, 701 MARKET STREET, ST. LOUIS MO 63101
Foufopoulos - De Ridder Lucrece director 83 TOWER ROAD NORTH, WARMLEY, BRISTOL X0 BS30 8XP
Ian Wilson officer: Executive Vice President C/O AMCOR PLC, 83 TOWER ROAD NORTH, WARMLEY, BRISTOL X0 BS308XP
Louis Fred Stephan officer: President, Amcor Flexibles NA 2301 INDUSTRIAL DRIVE, NEENAH WI 54956
Ronald Stephen Delia officer: Chief Executive Officer C/O AMCOR PLC, 83 TOWER ROAD NORTH, WARMLEY, BRISTOL X0 BS308XP
Michael J Zacka officer: President, Amcor Flex Europe 83 TOWER ROAD NORTH, WARMLEY, BRISTOL X0 BS30 8XP
Eric V Roegner officer: President,Amcor Rigid Plastics ARCONIC INC., 390 PARK AVENUE, NEW YORK NY 10022-4608
Julie Marie Sorrells officer: V.P. & Corporate Controller 83 TOWER ROAD NORTH, WARMLEY BRISTOL X0 BS30 8XP
Michael Casamento officer: Executive VP, Finance & CFO C/O AMCOR PLC, 83 TOWER ROAD NORTH, WARMLEY, BRISTOL X0 BS308XP
Gonzalez Susana Suarez officer: Ex. VP & Chief Human Resources 521 WEST 57TH STREET, NEW YORK NY 10019
Deborah Rasin officer: General Counsel TWO PRUDENTIAL PLAZA, SUITE 4100, CHICAGO IL 60601
Achal Agarwal director P.O. BOX 61900, DALLAS TX 75261-9100
Susan K Carter director C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036

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