Alkaline Water Company Inc.
WTER Consumer Defensive Beverages Non Alcoholic
Revenue growth for ten consecutive years, operating cash flow growth for three.
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Alkaline Water Company Inc. (WTER) Altman Z-score
Alkaline Water Company Inc.'s Altman Z-score for fiscal 2023 is −11.07, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2023 | −11.07 | (3.40) |
| FY2022 | −7.66 | (7.27) |
| FY2021 | −0.39 | 3.87 |
| FY2020 | −4.26 | (8.67) |
| FY2019 | 4.41 | 9.25 |
| FY2018 | −4.84 | (1.05) |
| FY2017 | −3.79 | 6.17 |
| FY2016 | −9.96 | 4.97 |
| FY2015 | −14.93 | — |
How fiscal 2023’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.41) | — | −0.49 | |
| Retained earnings / total assets | (7.60) | — | −10.64 | |
| EBIT / total assets | (1.22) | — | −4.03 | |
| Market value of equity / total liabilities | 0.94 | — | 0.57 | |
| Sales / total assets | 3.54 | — | 3.54 | |
| Altman Z-score | Distress zone | −11.07 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −35.93 | ||
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 |
|---|---|
| COCO Vita Coco Company, Inc. compare | 17.4× |
| FIZZ National Beverage Corp. compare | 12.8× |
| AKO.B Embotelladora Andina S.A. compare | 3.1× |
| AKO.A Embotelladora Andina S.A. compare | 2.9× |
| ZVIA Zevia PBC compare | 2.9× |
| BRFH Barfresh Food Group Inc. compare | −5.2× |
| REED Reeds, Inc. compare | −9.6× |
| WTER Alkaline Water Company Inc. | −11.1× |
| BUDA Buda Juice Inc. 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