GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Jones Lang LaSalle Inc (NYSE:JLL) » Definitions » Altman Z-Score

Jones Lang LaSalle (Jones Lang LaSalle) Altman Z-Score

: 2.42 (As of Today)
View and export this data going back to 1997. Start your Free Trial

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.

Warning Sign:

Altman Z-score of 2.42 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Jones Lang LaSalle has a Altman Z-Score of 2.42, indicating it is in Grey Zones. This implies that Jones Lang LaSalle is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

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 Jones Lang LaSalle's Altman Z-Score or its related term are showing as below:

JLL' s Altman Z-Score Range Over the Past 10 Years
Min: 2.23   Med: 2.87   Max: 3.39
Current: 2.42

During the past 13 years, Jones Lang LaSalle's highest Altman Z-Score was 3.39. The lowest was 2.23. And the median was 2.87.


Jones Lang LaSalle Altman Z-Score Historical Data

The historical data trend for Jones Lang LaSalle'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.

Jones Lang LaSalle Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.53 2.23 2.85 2.60 2.47

Jones Lang LaSalle 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 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 Premium Member Only Premium Member Only Premium Member Only 2.60 2.53 2.45 2.43 2.47

Competitive Comparison

For the Real Estate Services subindustry, Jones Lang LaSalle'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.


Jones Lang LaSalle Altman Z-Score Distribution

For the Real Estate industry and Real Estate sector, Jones Lang LaSalle's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Jones Lang LaSalle's Altman Z-Score falls into.



Jones Lang LaSalle 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.

Jones Lang LaSalle'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*0.0256+1.4*0.3608+3.3*0.0241+0.6*0.853+1.0*1.2923
=2.42

* 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 $16,065 Mil.
Total Current Assets was $6,857 Mil.
Total Current Liabilities was $6,446 Mil.
Retained Earnings was $5,796 Mil.
Pre-Tax Income was 185.1 + 73.8 + 4 + -11 = $252 Mil.
Interest Expense was -31.5 + -37.1 + -40.5 + -26.3 = $-135 Mil.
Revenue was 5881.4 + 5111.4 + 5052.5 + 4715.5 = $20,761 Mil.
Market Cap (Today) was $8,236 Mil.
Total Liabilities was $9,655 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
=(6857 - 6446.1)/16064.8
=0.0256

X2=Retained Earnings/Total Assets
=5795.6/16064.8
=0.3608

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(251.9 - -135.4)/16064.8
=0.0241

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=8235.565/9654.9
=0.853

X5=Revenue/Total Assets
=20760.8/16064.8
=1.2923

The zones of discrimination were as such:

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

Jones Lang LaSalle has a Altman Z-Score of 2.42 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.


Jones Lang LaSalle  (NYSE:JLL) 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.


Jones Lang LaSalle Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Jones Lang LaSalle's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Jones Lang LaSalle (Jones Lang LaSalle) Business Description

Traded in Other Exchanges
Address
200 East Randolph Drive, Chicago, IL, USA, 60601
Jones Lang LaSalle provides a wide range of real estate-related services to owners, occupiers, and investors worldwide, including leasing, property and project management, and capital markets advisory. JLL's investment management arm, LaSalle Investment Management, manages over $70 billion for clients across diverse public and private real estate strategies.
Executives
Andrew W Poppink officer: CEO, Markets Advisory 200 E. RANDOLPH, CHICAGO IL 60601
Moses Ifidon Ojeisekhoba director 200 E. RANDOLPH DRIVE, CHICAGO IL 60601
Laura M. Adams officer: Chief Human Resources Officer 200 E. RANDOLPH, CHICAGO IL 60601
Larry Quinlan director 2225 LAWSON LANE, SANTA CLARA CA 95054
Mark Gabbay officer: CEO LaSalle Investment Mgmt 200 E. RANDOLPH, CHICAGO IL 60601
Benjamin G. Hawke officer: Chief Accounting Officer 200 E. RANDOLPH, CHICAGO IL 60601
Efrain Rivera director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Louis F Bowers officer: Global Controller 200 E. RANDOLPH DRIVE, CHICAGO IL 60601
Kylie L Kendrick officer: Chief Operating Officer 200 E. RANDOLPH, CHICAGO IL 60601
Tina L. Ju director 200 E. RANDOLPH, CHICAGO IL 60601
Richard Bloxam officer: Global Head, Capital Markets 200 E. RANDOLPH DRIVE, CHICAGO IL 60601
Jeff A Jacobson officer: CEO, LaSalle Investment Mgmt 200 E. RANDOLPH DR., CHICAGO IL 60601
Karen G Brennan officer: Chief Financial Officer 200 E. RANDOLPH DRIVE, CHICAGO IL 60601
Yishai Lerner officer: Co-CEO JLL Technologies 200 E. RANDOLPH STREET, CHICAGO IL 60601
Mihir Shah officer: Co-CEO JLL Technologies 200 E. RANDOLPH STREET, CHICAGO IL 60601