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Mercedes-Benz Group AG (XTER:MBG) Altman Z-Score : 1.53 (As of Oct. 31, 2024)


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What is Mercedes-Benz Group AG 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 1.53 is in distress zone. This implies bankruptcy possibility in the next two years.

Mercedes-Benz Group AG has a Altman Z-Score of 1.53, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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 Mercedes-Benz Group AG's Altman Z-Score or its related term are showing as below:

XTER:MBG' s Altman Z-Score Range Over the Past 10 Years
Min: 0.93   Med: 1.35   Max: 1.63
Current: 1.53

During the past 13 years, Mercedes-Benz Group AG's highest Altman Z-Score was 1.63. The lowest was 0.93. And the median was 1.35.


Mercedes-Benz Group AG Altman Z-Score Historical Data

The historical data trend for Mercedes-Benz Group AG'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.

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Mercedes-Benz Group AG Altman Z-Score Chart

Mercedes-Benz Group AG 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 1.04 0.98 1.33 1.50 1.59

Mercedes-Benz Group AG Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.58 1.59 1.63 1.57 1.52

Competitive Comparison of Mercedes-Benz Group AG's Altman Z-Score

For the Auto Manufacturers subindustry, Mercedes-Benz Group AG'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.


Mercedes-Benz Group AG's Altman Z-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Mercedes-Benz Group AG's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Mercedes-Benz Group AG's Altman Z-Score falls into.



Mercedes-Benz Group AG 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.

Mercedes-Benz Group AG'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*0.1049+1.4*0.3041+3.3*0.0611+0.6*0.3524+1.0*0.5647
=1.53

* 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 Sep. 2024:
Total Assets was €262,017 Mil.
Total Current Assets was €103,215 Mil.
Total Current Liabilities was €75,741 Mil.
Retained Earnings was €79,685 Mil.
Pre-Tax Income was 2645 + 4166 + 4029 + 4450 = €15,290 Mil.
Interest Expense was -236 + -111 + -86 + -297 = €-730 Mil.
Revenue was 34528 + 36743 + 35873 + 40804 = €147,948 Mil.
Market Cap (Today) was €60,339 Mil.
Total Liabilities was €171,209 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
=(103215 - 75741)/262017
=0.1049

X2=Retained Earnings/Total Assets
=79685/262017
=0.3041

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(15290 - -730)/262017
=0.0611

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=60338.832/171209
=0.3524

X5=Revenue/Total Assets
=147948/262017
=0.5647

The zones of discrimination were as such:

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

Mercedes-Benz Group AG has a Altman Z-Score of 1.53 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Mercedes-Benz Group AG  (XTER:MBG) 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.


Mercedes-Benz Group AG Altman Z-Score Related Terms

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Mercedes-Benz Group AG Business Description

Address
Mercedesstrasse 120, Stuttgart, BW, DEU, 70372
Based in Stuttgart, Germany, Mercedes-Benz Group makes premium and luxury passenger vehicles and commercial vans. Brands include Mercedes-Benz, AMG, and Maybach. Mercedes-Benz Mobility provides the company's dealers and its customers with vehicle financing as well as mobility services in ride hailing, car sharing, and charging. Mercedes owns 9.74% of Aston Martin and 9.55% of Beijing Automotive Group. Through Tenaciou3 Prospect Investment, Li Shufu, chair of Chinese automaker Geely, owns 9.69% of Mercedes-Benz. Other major shareholders include Beijing Automotive Group at 9.98% and Kuwait Investment Authority at 4.9% (6.8% before the sale of a 1.9% stake in March 2023).
Executives
Dr. Martin Brudermüller Supervisory Board
Dr. Frank Weber Supervisory Board
Bader M. Al Saad Supervisory Board
Sari Baldauf Supervisory Board
Ben Van Beurden Supervisory Board
Dr. Bernd Pischetsrieder Supervisory Board
Timotheus Höttges Supervisory Board
Petraea Heynike Supervisory Board
Dr. Manfred Bischoff Supervisory Board
Josef Kaeser Supervisory Board
Dr. Jürgen Hambrecht Supervisory Board