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CommVault Systems (CommVault Systems) Altman Z2-Score : -3.03 (As of Apr. 27, 2024)


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What is CommVault Systems Altman Z2-Score?

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:

CommVault Systems has a Altman Z2-Score of -3.03, 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 CommVault Systems's Altman Z2-Score or its related term are showing as below:

CVLT' s Altman Z2-Score Range Over the Past 10 Years
Min: -3.43   Med: 1.84   Max: 5.84
Current: -3.03

During the past 13 years, CommVault Systems's highest Altman Z2-Score was 5.84. The lowest was -3.43. And the median was 1.84.


CommVault Systems Altman Z2-Score Historical Data

The historical data trend for CommVault Systems'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.

* Premium members only.

CommVault Systems Altman Z2-Score Chart

CommVault Systems Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Altman Z2-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.74 0.20 -0.05 -2.03 -3.05

CommVault Systems Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z2-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.13 -3.05 -3.43 -3.14 -3.03

Competitive Comparison of CommVault Systems's Altman Z2-Score

For the Software - Application subindustry, CommVault Systems'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.


CommVault Systems's Altman Z2-Score Distribution in the Software Industry

For the Software industry and Technology sector, CommVault Systems's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where CommVault Systems's Altman Z2-Score falls into.



CommVault Systems 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.

CommVault Systems'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*0.1663+3.26*-1.4135+6.72*0.0291+1.05*0.2774
=-3.03

* 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.

Trailing Twelve Months (TTM) ended in Dec. 2023:
Total Assets was $804.1 Mil.
Total Current Assets was $566.5 Mil.
Total Current Liabilities was $432.8 Mil.
Retained Earnings was $-1,136.6 Mil.
Pre-Tax Income was 22.316 + 18.737 + 19.505 + -37.631 = $22.9 Mil.
Interest Expense was -0.103 + -0.112 + -0.096 + -0.157 = $-0.5 Mil.
Total Liabilities was $629.5 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(566.534 - 432.805)/804.074
=0.1663

X2=Retained Earnings/Total Assets
=-1136.582/804.074
=-1.4135

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(22.927 - -0.468)/804.074
=0.0291

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(174.603 - 0)/629.471
=0.2774

The zones of discrimination were as such:

Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones

CommVault Systems has a Altman Z2-Score of -3.03 indicating it is in Distress Zones.


CommVault Systems  (NAS:CVLT) 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.

X4_2, Net Worth (Total Stockholders Equity - Preferred Stock)/Total Liabilities (NW/TL): it compares a company’s stock net worth with its total liabilities and can be used to assess the extent of its reliance on debt.

Read more about Altman Z2-Score, the original research on Z-Score and the additional research on Z2-Score.


Be Aware

Altman Z2-Score does not apply to financial companies.


CommVault Systems Altman Z2-Score Related Terms

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CommVault Systems (CommVault Systems) Business Description

Traded in Other Exchanges
Address
1 CommVault Way, Tinton Falls, NJ, USA, 07724
CommVault Systems Inc provides data and information management software applications and services. The firm sells software licenses and services to large global enterprises, small- and midsize businesses, and government agencies through both its salesforce and its network of reseller partners. Its software solutions include Commvault Complete Backup and Recovery, HyperScale, Hedvig, and Metallic. The company operates in the United States and exports to many other countries.
Executives
Allison Pickens director 471 29TH STREET, SAN FRANCISCO CA 94131
Gary Merrill officer: Chief Financial Officer 2 CRESCENT PLACE, OCEANPORT NJ 07757
Sanjay Mirchandani director, officer: President & CEO 188 MINNA STREET, #29C, SAN FRANCISCO CA 94105
Blasio Riccardo Di officer: Chief Revenue Officer 1226 COLUMBUS BLVD, CORAL GABLES FL 33134
Vivie Lee director 126 SIERRA POINT ROAD, BRISBANE CA 94005
James J. Whalen officer: Chief Accounting Officer 26 SAGAMORE AVENUE, OCEANPORT NJ 07757
Nicola Adamo director 10 MAACKA DRIVE, HOLMDEL NJ 07733
David F Walker director 14388 EAGLE POINTE DR, CLEARWATER FL 337622214
A Shane Sanders director 2200 PENNSYLVANIA AVENUE, NW, SUITE 800W, WASHINGTON DC 20037
Charles E Moran director 2300 WINDY RIDGE PARKWAY, 10TH FLOOR, ATLANTA GA 30339
Arlen Shenkman director C/O CITRIX SYSTEMS, INC., 851 WEST CYRESS CREEK ROAD, FORT LAUDERDALE FL 33309
Martha Helena Bejar director C/O POLYCOM, INC., 6001 AMERICA CENTER DRIVE, SAN JOSE CA 95002
Richard Todd Bradley director C/O HEWLETT-PACKARD COMPANY, 3000 HANOVER STREET, PALO ALTO CA 94304
Keith Geeslin director C/O FRANCISCO PARTNERS, ONE LETTERMAN DRIVE, BLDG. C, STE. 410, SAN FRANCISCO CA 94129
Brian Carolan officer: Chief Accounting Officer COMMVAULT SYSTEMS INC, 2 CRESCENT PL, OCEANPORT NJ 07757-0900