Intercontinental Hotels Group
Intercontinental Hotels Group’s revenue for fiscal 2025 (year ended December 2025) was $5.2 billion, up 5.40% from fiscal 2024. Revenue growth for five consecutive years.
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Intercontinental Hotels Group (IHG) Altman Z-score
Intercontinental Hotels Group's Altman Z-score for fiscal 2025 is 3.23, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 3.23 | (0.23) |
| FY2024 | 3.47 | 0.31 |
| FY2023 | 3.16 | 0.42 |
| FY2022 | 2.74 | 0.24 |
| FY2021 | 2.50 | 0.85 |
| FY2020 | 1.65 | (1.42) |
| FY2019 | 3.07 | (0.08) |
| FY2018 | 3.15 | (1.07) |
| FY2017 | 4.23 | 0.74 |
| FY2016 | 3.49 | (1.30) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.01) | — | −0.01 | |
| Retained earnings / total assets | (0.06) | — | −0.08 | |
| EBIT / total assets | 0.22 | — | 0.74 | |
| Market value of equity / total liabilities | 2.69 | — | 1.61 | |
| Sales / total assets | 0.97 | — | 0.97 | |
| Altman Z-score | Safe zone | 3.23 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | 0.90 | ||
Z and Z″ put Intercontinental Hotels Group in different zones: safe zone by Z, distress zone by Z″.
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 |
|---|---|
| ATAT Atour Lifestyle Holdings Limited Sponsored ADR compare | 6.8× |
| MAR Marriott International, Inc. compare | 3.8× |
| IHG Intercontinental Hotels Group | 3.2× |
| CHH Choice Hotels International, Inc. compare | 3.1× |
| HLT Hilton Worldwide Holdings Inc. compare | 2.9× |
| HTHT H World Group Limited Sponsored ADR compare | 2.0× |
| H Hyatt Hotels Corporation compare | 1.8× |
| WH Wyndham Hotels & Resorts compare | 1.7× |
| CVEO Civeo Corporation compare | −1.0× |
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