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GuruFocus has detected 5 Warning Signs with NGL Energy Partners LP $NGL.
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NGL Energy Partners LP (NYSE:NGL)
Altman Z-Score
2.26 (As of Today)

NGL Energy Partners LP has a Z-score of 2.26, indicating it is in Grey Zones. This implies that NGL Energy Partners LP is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

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.

NGL' s Altman Z-Score Range Over the Past 10 Years
Min: 1.16   Max: 7.19
Current: 2.27


During the past 8 years, NGL Energy Partners LP's highest Altman Z-Score was 7.19. The lowest was 1.16. And the median was 2.92.


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.

NGL Energy Partners LP's Altman Z-Score for today is calculated with this formula:


* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Trailing Twelve Months (TTM) ended in Dec. 2016:
Total Assets was $6,378 Mil.
Total Current Assets was $1,563 Mil.
Total Current Liabilities was $967 Mil.
Retained Earnings was $0 Mil.
Pretax Income was 2.407 + -66.198 + 183.215 + -205.506 = $-86 Mil.
Interest Expense was -41.436 + -33.442 + -30.438 + -34.54 = $-140 Mil.
Revenue was 3406.641 + 3045.538 + 2721.97 + 2325.44 = $11,500 Mil.
Market Capitalization (Today) was $2,391 Mil.
Total Liabilities was $4,460 Mil.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1562.703 - 966.846)/6378.076

X2=Retained Earnings/Total Assets

X3=Earnings Before Interest and Taxes/Total Assets
=(Pretax Income + Interest Expense)/Total Assets
=(-86.082 + -139.856)/6378.076

X4=Market Value Equity/Book Value of Total Liabilities
=Market Capitalization/Total Liabilities

X5=Revenue/Total Assets

The zones of discrimination were as such:

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

NGL Energy Partners LP has a Z-score of 2.26 indicating it is in Grey Zones.

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


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 local exchange's currency.

NGL Energy Partners LP Annual Data

X1 0.19150.22120.16450.07180.04470.07510.07930.058
X2 0.06140.0884000000
X3 0.09420.092100.02150.03620.02620.0235-0.0098
X4 0001.74751.02451.1360.60370.2007
X5 7.10597.256101.74841.92782.33852.52442.1118
Z-score 7.737.950.202.952.723.203.062.27
Zones Safe ZonesSafe ZonesDistress” ZonesGrey ZonesGrey ZonesSafe ZonesSafe ZonesGrey Zones

NGL Energy Partners LP Quarterly Data

X1 0.12590.08060.07930.07510.06590.06590.0580.06650.07430.0934
X2 0000000000
X3 0.01490.01150.02350.02730.030.0393-0.00980.02550.01610.0084
X4 0.72540.47340.60370.69790.46590.24890.20070.49990.48720.5142
X5 2.40372.54242.52442.51282.24881.92512.11181.82011.77451.803
Z-score 3.042.963.063.112.712.
Zones Safe ZonesGrey ZonesSafe ZonesSafe ZonesGrey ZonesGrey ZonesGrey ZonesGrey ZonesGrey ZonesGrey Zones
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