| 601628 Stock | | | 41.54 0.11 0.27% |
Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in China Life Insurance. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in nation.
At present, China Life's
Capital Lease Obligations is projected to decrease significantly based on the last few years of reporting. The current year's
Capital Expenditures is expected to grow to about 6
B, whereas
Net Invested Capital is forecasted to decline to about 492
B. At present, China Life's
Interest Expense is projected to increase significantly based on the last few years of reporting. The current year's
Other Operating Expenses is expected to grow to about 38.2
B, whereas
Selling General Administrative is forecasted to decline to about 37.5
B.
China Life Insurance Company Z Score Analysis
China Life's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
| First Factor | = | 1.2 * ( | Working Capital | / | Total Assets ) |
|
| Second Factor | = | 1.4 * ( | Retained Earnings | / | Total Assets ) |
|
| Thrid Factor | = | 3.3 * ( | EBITAD | / | Total Assets ) |
|
| Fouth Factor | = | 0.6 * ( | Market Value of Equity | / | Total Liabilities ) |
|
| Fifth Factor | = | 0.99 * ( | Revenue | / | Total Assets ) |
|
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
In accordance with the company's disclosures, China Life Insurance has a Z Score of 0.0. This is 100.0% lower than that of the Insurance sector and about the same as
Financials (which currently averages 0.0) industry. The z score for all China stocks is 100.0% higher than that of the company.
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China Fundamentals
About China Life Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze China Life Insurance's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of China Life using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of China Life Insurance based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing
financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
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Other Information on Investing in China Stock
China Life financial ratios help investors to determine whether China Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in China with respect to the benefits of owning China Life security.