United Microelectronics Corporation UMC
- Market cap
- $63.9B
- P/E
- 24.6×
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United Microelectronics Corporation (UMC) Altman Z-score
United Microelectronics Corporation's Altman Z-score for fiscal 2025 is 3.27, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 3.27 | 0.16 |
| FY2024 | 3.11 | (0.30) |
| FY2023 | 3.41 | (0.07) |
| FY2022 | 3.47 | (0.55) |
| FY2021 | 4.02 | 0.42 |
| FY2020 | 3.60 | 1.96 |
| FY2019 | 1.64 | 0.12 |
| FY2018 | 1.52 | 0.18 |
| FY2017 | 1.34 | 0.11 |
| FY2016 | 1.23 | (0.52) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.20 | — | 0.24 | |
| Retained earnings / total assets | 0.40 | — | 0.56 | |
| EBIT / total assets | 0.08 | — | 0.26 | |
| Market value of equity / total liabilities | 2.99 | — | 1.80 | |
| Sales / total assets | 0.42 | — | 0.42 | |
| Altman Z-score | Safe zone | 3.27 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 5.06 | ||
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 |
|---|---|
| ALAB Astera Labs, Inc. compare | 101× |
| CRDO Credo Technology Group Holding Ltd. compare | 82.7× |
| MPWR Monolithic Power Systems, Inc. compare | 42.0× |
| ON ON Semiconductor Corporation compare | 4.6× |
| STM STMicroelectronics N.V. compare | 3.7× |
| MCHP Microchip Technology Incorporated compare | 3.7× |
| UMC United Microelectronics Corporation | 3.3× |
| NXPI NXP Semiconductors N.V. compare | 2.9× |
| ASX ASE Technology Holding Co., Ltd. compare | 2.5× |
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