Cazoo Group Ltd.
CZOOF Consumer Cyclical Auto & Truck Dealerships
Cazoo Group Ltd.’s revenue for fiscal 2022 (year ended December 2022) was $1.5 billion.
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Cazoo Group Ltd. (CZOOF) Altman Z-score
Cazoo Group Ltd.'s Altman Z-score for fiscal 2022 is −2.75, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2022 | −2.75 | (5.77) |
| FY2021 | 3.03 | — |
How fiscal 2022’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.30 | — | 0.36 | |
| Retained earnings / total assets | (1.48) | — | −2.07 | |
| EBIT / total assets | (0.77) | — | −2.55 | |
| Market value of equity / total liabilities | 0.12 | — | 0.07 | |
| Sales / total assets | 1.44 | — | 1.44 | |
| Altman Z-score | Distress zone | −2.75 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −7.96 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| CRMT America's Car-Mart, Inc. compare | 2.8× |
| SDA SunCar Technology Group Inc. compare | 1.8× |
| RDNW RideNow Group, Inc. compare | 0.4× |
| UCAR U Power Limited compare | −1.1× |
| CZOOF Cazoo Group Ltd. | −2.7× |
| JZXN Jiuzi Holdings, Inc. compare | −7.1× |
| UXIN Uxin Limited Sponsored ADR compare | −9.4× |
| KXIN Kaixin Holdings compare | −12.4× |
| AZI Autozi Internet Technology (Global) Ltd. compare | −13.8× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets