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LQR House (LQR House) Altman Z-Score : 2.28 (As of May. 09, 2024)


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What is LQR House 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 2.54 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.

LQR House has a Altman Z-Score of 2.28, indicating it is in Grey Zones. This implies that LQR House 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 LQR House's Altman Z-Score or its related term are showing as below:

LQR' s Altman Z-Score Range Over the Past 10 Years
Min: 2.54   Med: 11.49   Max: 11.49
Current: 2.54

During the past 3 years, LQR House's highest Altman Z-Score was 11.49. The lowest was 2.54. And the median was 11.49.


LQR House Altman Z-Score Historical Data

The historical data trend for LQR House'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.

LQR House Altman Z-Score Chart

LQR House Annual Data
Trend Dec21 Dec22 Dec23
Altman Z-Score
- - 11.49

LQR House Quarterly Data
Jun21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - -2.56 11.49

Competitive Comparison of LQR House's Altman Z-Score

For the Beverages - Wineries & Distilleries subindustry, LQR House'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.


LQR House's Altman Z-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, LQR House's Altman Z-Score distribution charts can be found below:

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



LQR House 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.

LQR House'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*0.9676+1.4*-1.2955+3.3*-1.032+0.6*10.4364+1.0*0.0743
=2.28

* 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 $15.09 Mil.
Total Current Assets was $15.07 Mil.
Total Current Liabilities was $0.47 Mil.
Retained Earnings was $-19.55 Mil.
Pre-Tax Income was -6.328 + -5.541 + -3.556 + -0.322 = $-15.75 Mil.
Interest Expense was 0 + -0.171 + 0 + 0 = $-0.17 Mil.
Revenue was 0.609 + 0.171 + 0.191 + 0.151 = $1.12 Mil.
Market Cap (Today) was $4.93 Mil.
Total Liabilities was $0.47 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
=(15.074 - 0.47)/15.093
=0.9676

X2=Retained Earnings/Total Assets
=-19.553/15.093
=-1.2955

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-15.747 - -0.171)/15.093
=-1.032

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=4.926/0.472
=10.4364

X5=Revenue/Total Assets
=1.122/15.093
=0.0743

The zones of discrimination were as such:

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

LQR House has a Altman Z-Score of 2.28 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.


LQR House  (NAS:LQR) 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.


LQR House Altman Z-Score Related Terms

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LQR House (LQR House) Business Description

Traded in Other Exchanges
N/A
Address
6800 Indian Creek Drive, Suite 1E, Miami Beach, FL, USA, 33141
LQR House Inc intends to become the full-service digital marketing and brand development face of the alcoholic beverage space. It also intends to integrate the supply, sales, and marketing facets of the alcoholic beverage space into one easy-to-use platform and become the one-stop shop for everything related to alcohol. The company's primary business includes the development of premium limited-batch spirit brands, establishing an exclusive wine club, and marketing internal and external brands through an exclusive agreement with a U.S.-based e-commerce portal. It believes that the marketing and brand management services it provides to its wholly owned and third-party clients will increase brand recognition thereof, and drive sales thereof through its e-commerce platform partner.
Executives
Sean Dollinger director, 10 percent owner, officer: Chief Executive Officer 6800 INDIAN CREEK DRIVE, SUITE 1E, MIAMI BEACH FL 33141
Gary L Herman director 720 FIFTH AVE, 10TH FLOOR, NEW YORK NY 10019
James C. Huber director 127 FLORENCE DRIVE, JUPITER FL 33458
Kbros, Llc 10 percent owner 23658 SAN VICENTE ROAD, RAMONA CA 92065
Guy Dollinger director 283 RUE PICASSO, DOLLARD-DES-ORMEAUX A8 H9A 3K2
Jaclyn Hoffman officer: Chief Marketing Officer 166 2ND AVENUE, APT 2A, NEW YORK NY 10003
Kumar Abhishek officer: Chief Financial Officer 25/3A, RAIL VIHAR, SECTOR 56, GURGAON K7 122002
Darren Collins director 22 RIVERVIEW ROAD, ALLISTON A6 L9M 1R2
Alexandra Hoffman director 6800 INDIAN CREEK DRIVE, APT 101, MIAMI BEACH FL 33141
James P. O'brien director 3000-360 MAIN STREET, WINNIPEG A2 R3C 4G1