Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.
Warning Sign:
Blount International has a Altman Z2-Score of -0.23, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
The zones of discrimination were as such:
When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.
The historical rank and industry rank for Blount International's Altman Z2-Score or its related term are showing as below:
Blount International Altman Z2-Score Historical Data
The historical data trend for Blount International's Altman Z2-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Blount International's Altman Z2-Score
For the Tools & Accessories subindustry, Blount International's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Blount International's Altman Z2-Score Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Blount International's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Blount International's Altman Z2-Score falls into.
Blount International Altman Z2-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.
Blount International's Altman Z2-Score for today is calculated with this formula:
Z
=
6.56
*
X1
+
3.26
*
X2
+
6.72
*
X3
+
1.05
*
X4_2
=
6.56
*
0.3033
+
3.26
*
-0.6113
+
6.72
*
-0.0634
+
1.05
*
0.1896
=
-0.23
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.
Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones
Blount International has a Altman Z2-Score of -0.23 indicating it is in Distress Zones.
Blount International (NYSE:BLT) Altman Z2-Score Explanation
The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
Altman Z2-Score does not apply to financial companies.
Blount International Altman Z2-Score Related Terms
Thank you for viewing the detailed overview of Blount International's Altman Z2-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Blount International (Blount International) Business Description
Blount International Inc is a global industrial company. The Company designs, manufactures, and markets equipment, replacement and component parts, and accessories for professionals and consumers in select end-markets under its proprietary brand names. It also manufactures and markets such items to original equipment manufacturers ("OEMs") under private label brand names. The Company specializes in manufacturing cutting parts and equipment used in forestry, lawn, and garden; farming, ranching, and agricultural; and construction applications. It also purchases products manufactured by other suppliers that are aligned with the markets it serves and market them, typically under one of its brands, through its global sales and distribution network. Its products are sold in more than 110 countries and approximately 54% of its 2013 sales were shipped to customers outside of the United States of America ("U.S."). The Company operates in two primary business segments: the Forestry, Lawn, and Garden ("FLAG") segment and the Farm Ranch and Agriculture ("FRAG") segment. The FLAG segment manufactures and markets cutting chain, guide bars, and drive sprockets for chain saw use, and lawnmower and edger blades for outdoor power equipment. The FLAG segment also purchases replacement parts and accessories from other manufacturers and markets them, primarily under its brands, to its FLAG customers through its global sales and distribution network. The FLAG segment currently includes the operations of the Company that have historically served the forestry, lawn, and garden markets, as well as KOX GmbH and related companies (collectively "KOX"), and a portion of Finalame SA, which includes PBL SA and related companies (collectively "PBL"). The Company's FRAG segment designs, manufactures, assembles and markets attachments and implements for tractors in a variety of mowing, cutting, clearing, material handling, landscaping and grounds maintenance applications, as well as log splitters, post-hole diggers, self-propelled lawnmowers, attachments for off-highway construction equipment applications, and other general purpose tractor attachments. In addition, the FRAG segment manufactures a variety of attachment cutting blade parts. The FRAG segment also purchases replacement parts and accessories from other manufacturers that it markets to its FRAG customers through its sales and distribution network. The FRAG segment currently includes the operations of SP Companies, Inc. and SpeeCo, Inc. (collectively "SpeeCo"), GenWoods HoldCo, LLC and its wholly-owned subsidiary, Woods Equipment Company (collectively "Woods/TISCO"), and a portion of PBL. The Company also operates a concrete cutting and finishing equipment business that is reported within the Corporate and Other category. This business manufactures and markets diamond cutting chain and assembles and markets concrete cutting chain saws for the construction and utility markets.
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