GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » BGRIMM Technology Co Ltd (SHSE:600980) » Definitions » Altman Z-Score

BGRIMM Technology Co (SHSE:600980) Altman Z-Score : 2.57 (As of Jun. 07, 2024)


View and export this data going back to 2004. Start your Free Trial

What is BGRIMM Technology 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 2.66 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.

BGRIMM Technology Co has a Altman Z-Score of 2.57, indicating it is in Grey Zones. This implies that BGRIMM Technology Co 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 BGRIMM Technology Co's Altman Z-Score or its related term are showing as below:

SHSE:600980' s Altman Z-Score Range Over the Past 10 Years
Min: 2.66   Med: 7.3   Max: 24.27
Current: 2.66

During the past 13 years, BGRIMM Technology Co's highest Altman Z-Score was 24.27. The lowest was 2.66. And the median was 7.30.


BGRIMM Technology Co Altman Z-Score Historical Data

The historical data trend for BGRIMM Technology 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.

BGRIMM Technology Co Altman Z-Score Chart

BGRIMM Technology 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 7.76 6.77 6.53 4.05 3.29

BGRIMM Technology 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 4.47 4.21 3.68 3.29 2.75

Competitive Comparison of BGRIMM Technology Co's Altman Z-Score

For the Other Industrial Metals & Mining subindustry, BGRIMM Technology 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.


BGRIMM Technology Co's Altman Z-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, BGRIMM Technology Co's Altman Z-Score distribution charts can be found below:

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



BGRIMM Technology 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.

BGRIMM Technology 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*0.2716+1.4*0.221+3.3*0.0428+0.6*2.3461+1.0*0.3857
=2.57

* 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 ¥2,384.2 Mil.
Total Current Assets was ¥1,692.9 Mil.
Total Current Liabilities was ¥1,045.4 Mil.
Retained Earnings was ¥527.0 Mil.
Pre-Tax Income was 25.111 + 20.591 + 30.5 + 25.455 = ¥101.7 Mil.
Interest Expense was -0.082 + -0.099 + -0.127 + -0.127 = ¥-0.4 Mil.
Revenue was 201.623 + 264.853 + 209.13 + 244.015 = ¥919.6 Mil.
Market Cap (Today) was ¥2,488.8 Mil.
Total Liabilities was ¥1,060.8 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
=(1692.894 - 1045.364)/2384.219
=0.2716

X2=Retained Earnings/Total Assets
=526.982/2384.219
=0.221

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(101.657 - -0.435)/2384.219
=0.0428

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=2488.816/1060.842
=2.3461

X5=Revenue/Total Assets
=919.621/2384.219
=0.3857

The zones of discrimination were as such:

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

BGRIMM Technology Co has a Altman Z-Score of 2.57 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.


BGRIMM Technology Co  (SHSE:600980) 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.


BGRIMM Technology Co Altman Z-Score Related Terms

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


BGRIMM Technology Co (SHSE:600980) Business Description

Traded in Other Exchanges
N/A
Address
No. 188, South Fourth Ring Road West, 4th Floor, Building 23, Area 18, Fengtai District, Beijing, CHN, 100160
BGRIMM Technology Co Ltd, formerly BGRIMM Magnetic Materials & Technology Co Ltd is a China-based company. Its business activities are divided into mining equipment and magnetic materials division. Mining equipment division is engaged in research and development, production, and supporting technical consulting services for mining equipment. Its business scope includes flotation equipment, magnetic separation equipment, ore dressing auxiliary equipment, leaching tanks and other mining and smelting products. Magnetic materials division is engaged in the research and development, production, sales and comprehensive services of magnetic materials and devices. Magnetic material products include sintering permanent magnet ferrite, injection magnetic, and magnetic information recording material.
Executives
Sheng Zhong Yi Director
Lu Shi Jie senior management
Ran Hong Xiang senior management
Liu Yong Zhen Director
Luo Xiu Jian Director
Li Bing Shan Director
Liang Dian Yin Director
Li Hong Fa senior management

BGRIMM Technology Co (SHSE:600980) Headlines

No Headlines