Lichen International Limited
LICN Industrials Specialty Business Services
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Lichen International Limited (LICN) Altman Z-score
Lichen International Limited's Altman Z-score for fiscal 2025 is 2.19, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.19 | 0.67 |
| FY2024 | 1.52 | (1.43) |
| FY2023 | 2.95 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.42 | — | 0.50 | |
| Retained earnings / total assets | 0.27 | — | 0.37 | |
| EBIT / total assets | (0.24) | — | −0.79 | |
| Market value of equity / total liabilities | 2.98 | — | 1.79 | |
| Sales / total assets | 0.32 | — | 0.32 | |
| Altman Z-score | Grey zone | 2.19 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 16.74 | ||
Z and Z″ put Lichen International Limited in different zones: grey zone by Z, safe 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 |
|---|---|
| ANPA Rich Sparkle Holdings Limited compare | 73.5× |
| PC Premium Catering (Holdings) Limited compare | 72.3× |
| SFHG Samfine Creation Holdings Group Limited compare | 3.4× |
| LICN Lichen International Limited | 2.2× |
| PMEC Primech Holdings Ltd. compare | 2.0× |
| SGRP SPAR Group, Inc. compare | 1.4× |
| WHLM Wilhelmina International, Inc. compare | −0.5× |
| SST System1, Inc. compare | −2.7× |
| THH TryHard Holdings Limited compare | — |
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