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Carlisle Companies Inc (NYSE:CSL)
Altman Z-Score
4.86 (As of Today)

Carlisle Companies Inc has a Z-score of 4.86, indicating it is in Safe Zones. This implies the Z-Score is strong.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress” Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey” Zones.

CSL' s Altman Z-Score Range Over the Past 10 Years
Min: 2.51   Max: 5.03
Current: 4.86

2.51
5.03

During the past 13 years, Carlisle Companies Inc's highest Altman Z-Score was 5.03. The lowest was 2.51. And the median was 4.05.


Definition

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.

Carlisle Companies Inc's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1873+1.4*0.6038+3.3*0.1358+0.6*4.0749+1.0*0.9012
=4.86

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Trailing Twelve Months (TTM) ended in Mar. 2016:
Total Assets was $4,026 Mil.
Total Current Assets was $1,383 Mil.
Total Current Liabilities was $629 Mil.
Retained Earnings was $2,431 Mil.
Pretax Income was 102.2 + 117.3 + 153.1 + 139.5 = $512 Mil.
Interest Expense was -8.7 + -8.6 + -8.8 + -8.6 = $-35 Mil.
Revenue was 794 + 876.2 + 973.1 + 984.6 = $3,628 Mil.
Market Capitalization (Today) was $6,676 Mil.
Total Liabilities was $1,638 Mil.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1382.7 - 628.8)/4025.8
=0.1873

X2=Retained Earnings/Total Assets
=2430.8/4025.8
=0.6038

X3=Earnings Before Interest and Taxes/Total Assets
=(Pretax Income + Interest Expense)/Total Assets
=(512.1 + -34.7)/4025.8
=0.1358

X4=Market Value Equity/Book Value of Total Liabilities
=Market Capitalization/Total Liabilities
=6675.850/1638.3
=4.0749

X5=Revenue/Total Assets
=3627.9/4025.8
=0.9012

The zones of discrimination were as such:

Distress” Zones - 1.81 < “Grey” Zones < 2.99 - “Safe” Zones

Carlisle Companies Inc has a Z-score of 4.86 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Explanation

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, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm’s assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm’s assets.

Read more about Altman Z-score and the original research.


Be Aware

Z score does not apply to financial companies.


Related Terms

Total Assets, Total Current Assets, Total Current Liabilities, Retained Earnings, Pretax Income, Interest Expense, Revenue, Market Capitalization, Total Liabilities, Financial Strength


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Carlisle Companies Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
X1 0.28140.31920.25320.26050.22160.19140.21250.33170.32440.1805
X2 0.53520.60320.58690.69190.56510.49910.51730.55660.56790.6024
X3 0.14640.16560.11820.10810.07760.08780.12290.10520.1090.1271
X4 2.56652.57961.28632.98762.03981.66782.22233.35433.75723.5483
X5 1.34891.44631.43141.24310.99931.02761.04980.84250.85240.8961
Z-score 4.464.773.724.673.543.253.774.384.654.50
Zones Safe ZonesSafe ZonesSafe ZonesSafe ZonesSafe ZonesSafe ZonesSafe ZonesSafe ZonesSafe ZonesSafe Zones

Carlisle Companies Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
X1 0.33170.33950.3440.3560.32440.3340.20660.18770.18050.1873
X2 0.55660.55440.55420.56410.56790.57510.5570.56910.60240.6038
X3 0.10520.10170.1260.12680.1090.11020.10930.11440.12710.1358
X4 3.35433.35753.55093.28943.75723.90793.82673.31143.54833.8845
X5 0.84250.77170.71090.68180.85240.86990.84420.84820.89610.9012
Z-score 4.384.314.454.294.654.784.534.234.504.75
Zones Safe ZonesSafe ZonesSafe ZonesSafe ZonesSafe ZonesSafe ZonesSafe ZonesSafe ZonesSafe ZonesSafe Zones
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