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.
Inergy Midstream LP has a Altman Z2-Score of 1.85, indicating it is in Grey Zones. This implies that Inergy Midstream LP is in some kind of financial stress. If it is below 1.1, the company may face bankrupcy risk.
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 Inergy Midstream LP's Altman Z2-Score or its related term are showing as below:
Inergy Midstream LP Altman Z2-Score Historical Data
The historical data trend for Inergy Midstream LP'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 Inergy Midstream LP's Altman Z2-Score
For the Oil & Gas Midstream subindustry, Inergy Midstream LP'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.
Inergy Midstream LP's Altman Z2-Score Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Inergy Midstream LP's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Inergy Midstream LP's Altman Z2-Score falls into.
Inergy Midstream LP 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.
Inergy Midstream LP'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
*
0.0091
+
3.26
*
0
+
6.72
*
0.0085
+
1.05
*
1.6462
=
1.85
* 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.
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.
Inergy Midstream LP Altman Z2-Score Related Terms
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Inergy Midstream LP (Inergy Midstream LP) Business Description
Crestwood Midstream Partners LP, formerly known as Inergy Midstream, L.P., is a Delaware limited partnership formed in November 2011. The Company develops, acquires, owns and operates fee-based assets and operations within the energy midstream sector. The Company owns and operates a diversified portfolio of crude oil and natural gas gathering, processing, storage and transportation assets that connect energy supply with energy demand across North America. The Company has three reporting segments: Gathering and Processing, NGL and crude services, and Storage and Transportation. The Gathering and Processing operations engage in the gathering, processing, treating, compression, transportation and sales of natural gas and the delivery of NGLs. In Gathering and Processing, the Company provides natural gas gathering, processing, treating and compression services to producers in unconventional shale plays located in West Virginia, Wyoming, Texas, Arkansas, New Mexico and Louisiana. The Company owns rich gas systems in the Marcellus, Powder River Basin, Niobrara, Barnett, Granite Wash, and Avalon/Bone Spring Shale plays, and dry gas gathering systems in the Barnett, Fayetteville and Haynesville/Bossier Shale plays. The NGL and crude services operations provide gathering, storage and transportation services to producers, refiners, marketers, and others that effectively provide flow assurances to customers, as well as the production and sale of salt products. Operations in NGL and Crude segment include crude oil rail terminals, the Arrow gathering system, an NGL storage facility, and U.S Salt, LLC. The Storage and Transportation operations provide natural gas storage and transportations services to third parties. The corporate operations include all general and administrative expenses that are not allocated to the reportable segments. The Company owns and operates four natural gas storage facilities located in New York and Pennsylvania that have an aggregate working gas storage capacity of approximately 41.0 Bcf namely Stagecoach, Thomas Corners, Steuben, and Seneca Lake. Further, the Company owns natural gas transportation facilities located in New York and Pennsylvania namely North-South Facilities, MARC I Pipeline, and East Pipeline. Sales of crude oil, NGLs and salt are recognized at the time product is shipped or delivered to the customer depending on the sales terms. The Company is expanding its gathering and compression facilities in the Marcellus Shale.
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