Embotelladora Andina SA Company Z Score Analysis
Embotelladora Andina's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
| First Factor | = | 1.2 * ( | Working Capital | / | Total Assets ) |
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| Second Factor | = | 1.4 * ( | Retained Earnings | / | Total Assets ) |
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| Thrid Factor | = | 3.3 * ( | EBITAD | / | Total Assets ) |
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| Fouth Factor | = | 0.6 * ( | Market Value of Equity | / | Total Liabilities ) |
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| Fifth Factor | = | 0.99 * ( | Revenue | / | Total Assets ) |
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Embotelladora Z Score Driver Correlations
Understanding the fundamental principles of building solid financial models for Embotelladora Andina is extremely important. It helps to project a fair market value of Embotelladora Stock properly, considering its historical
fundamentals such as Z Score. Since Embotelladora Andina's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Embotelladora Andina's historical
financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Embotelladora Andina's interrelated accounts and indicators.
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To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
In accordance with the company's disclosures, Embotelladora Andina SA has a Z Score of 0.0. This is 100.0% lower than that of the Beverages sector and 100.0% lower than that of the
Consumer Staples industry. The z score for all United States stocks is 100.0% higher than that of the company.
Embotelladora Andina Current Valuation Drivers
We derive many important indicators used in calculating different scores of Embotelladora Andina from analyzing Embotelladora Andina's financial statements. These drivers represent accounts that assess Embotelladora Andina's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Embotelladora Andina's important valuation drivers and their relationship over time.
Embotelladora Fundamentals
About Embotelladora Andina Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Embotelladora Andina SA's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Embotelladora Andina using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Embotelladora Andina SA based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing
financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our
fundamental analysis page.
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Other Information on Investing in Embotelladora Stock
Embotelladora Andina financial ratios help investors to determine whether Embotelladora Stock is cheap or expensive when compared to a particular measure, such as profits or
enterprise value. In other words, they help investors to determine the cost of investment in Embotelladora with respect to the benefits of owning Embotelladora Andina security.