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KVH Industries (KVH Industries) Altman Z-Score : 3.35 (As of Apr. 29, 2024)


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What is KVH Industries Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 3.35 is strong.

KVH Industries has a Altman Z-Score of 3.35, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for KVH Industries's Altman Z-Score or its related term are showing as below:

KVHI' s Altman Z-Score Range Over the Past 10 Years
Min: 1.96   Med: 2.95   Max: 4.43
Current: 3.35

During the past 13 years, KVH Industries's highest Altman Z-Score was 4.43. The lowest was 1.96. And the median was 2.95.


KVH Industries Altman Z-Score Historical Data

The historical data trend for KVH Industries's Altman Z-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.

KVH Industries Altman Z-Score Chart

KVH Industries Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.47 3.28 3.65 4.43 3.57

KVH Industries Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-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 4.43 5.45 4.97 3.42 3.57

Competitive Comparison of KVH Industries's Altman Z-Score

For the Communication Equipment subindustry, KVH Industries's Altman Z-Score, along with its competitors' market caps and Altman Z-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.


KVH Industries's Altman Z-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, KVH Industries's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where KVH Industries's Altman Z-Score falls into.



KVH Industries Altman Z-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.

KVH Industries'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*0.5436+1.4*-0.0099+3.3*-0.0875+0.6*3.7174+1.0*0.7668
=3.35

* 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 Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Dec. 2023:
Total Assets was $172.6 Mil.
Total Current Assets was $118.8 Mil.
Total Current Liabilities was $25.0 Mil.
Retained Earnings was $-1.7 Mil.
Pre-Tax Income was -11.93 + -4.151 + 0.971 + 0.006 = $-15.1 Mil.
Interest Expense was -0.001 + 0 + 0 + 0 = $-0.0 Mil.
Revenue was 30.97 + 33.549 + 34.171 + 33.689 = $132.4 Mil.
Market Cap (Today) was $93.9 Mil.
Total Liabilities was $25.3 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
=(118.818 - 24.972)/172.634
=0.5436

X2=Retained Earnings/Total Assets
=-1.704/172.634
=-0.0099

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-15.104 - -0.001)/172.634
=-0.0875

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=93.908/25.262
=3.7174

X5=Revenue/Total Assets
=132.379/172.634
=0.7668

The zones of discrimination were as such:

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

KVH Industries has a Altman Z-Score of 3.35 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.


KVH Industries  (NAS:KVHI) Altman Z-Score 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

Altman Z-Score does not apply to financial companies.


KVH Industries Altman Z-Score Related Terms

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KVH Industries (KVH Industries) Business Description

Traded in Other Exchanges
N/A
Address
50 Enterprise Center, Middletown, RI, USA, 02842
KVH Industries Inc is a manufacturer of solutions that provide high-speed Internet, television, and voice services through satellite to mobile users at sea and on land. The company also provides commercially licensed entertainment, including news, sports, music, and movies, to commercial and leisure customers in the maritime, hotel, and retail markets. The Company operates in a number of geographic areas, including internationally. The Revenues are generated from international locations, mainly consisting of Singapore, Canada, European Union countries and other European countries, countries in Africa, Asia/Pacific and the Middle East, and India.
Executives
Stephen H Deckoff director, 10 percent owner 1 SOUND SHORE DRIVE, SUITE 200, GREENWICH CT 06830
Black Diamond Capital Management, L.l.c. 10 percent owner 2187 ATLANTIC STREET, 9TH FLOOR, STAMFORD CT 06902
Needham Group, Inc. 10 percent owner 445 PARK AVENUE, NEW YORK NY 10022
James S Dodez director 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Cielo Hernandez director C/O XL FLEET CORP., 145 NEWTON STREET, BOSTON MA 02135
Jennifer Louise Baker officer: VP/CAO 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Felise Feingold officer: SVP General Counsel 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Robert J Balog officer: Chief Technology Officer` 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Brent C Bruun officer: Interim CEO 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
David B. Kagan director 300 HOLIDAY SQUARE BLVD., COVINGTON LA 70433
David Tolley director C/O THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154
Daniel R Conway officer: EVP Inertial Navigation C/O KVH INDUSTRIES INC, 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
George A Needham 10 percent owner C/O NEEDHAM & COMPANY, LLC, 445 PARK AVE, NEW YORK NY 10022
Roger Kuebel officer: CFO 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842
Kits Van Heyningen Martin other: Sr. Advisor 50 ENTERPRISE CENTER, MIDDLETOWN RI 02842