Diageo plc
DEO Consumer Defensive Beverages Wineries & Distilleries
Diageo plc’s revenue for fiscal 2026 (year ended June 2026) was $19.6 billion, down 2.97% from fiscal 2025. Operating cash flow growth for three consecutive years.
Follow DEO
Diageo plc (DEO) Altman Z-score
Diageo plc's Altman Z-score for fiscal 2026 is 1.85, in the grey zone (1.81–2.99).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 1.85 | (0.18) |
| FY2025 | 2.02 | (0.49) |
| FY2024 | 2.52 | (0.49) |
| FY2023 | 3.01 | 0.22 |
| FY2022 | 2.79 | (0.42) |
| FY2021 | 3.21 | 0.85 |
| FY2020 | 2.35 | (1.03) |
| FY2019 | 3.39 | (0.01) |
| FY2018 | 3.39 | 0.10 |
| FY2017 | 3.29 | 0.73 |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.14 | — | 0.17 | |
| Retained earnings / total assets | 0.18 | — | 0.25 | |
| EBIT / total assets | 0.07 | — | 0.22 | |
| Market value of equity / total liabilities | 1.32 | — | 0.79 | |
| Sales / total assets | 0.42 | — | 0.42 | |
| Altman Z-score | Grey zone | 1.85 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 2.34 | ||
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 |
|---|---|
| EPSM Epsium Enterprise Limited compare | 10.7× |
| AGCC Agencia Comercial Spirits Ltd compare | 5.9× |
| BF.A Brown Forman Corporation compare | 4.1× |
| BF.B Brown-Forman Corporation compare | 4.1× |
| DEO Diageo plc | 1.8× |
| MGPI MGP Ingredients, Inc. compare | 1.6× |
| SNDL SNDL Inc. compare | 1.2× |
| WVVI Willamette Valley Vineyards, Inc. compare | 1.0× |
| IBG Innovation Beverage Group Limited compare | −31.4× |
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