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Martha Stewart Living Omnimedia (Martha Stewart Living Omnimedia) Altman Z-Score : 3.04 (As of Apr. 26, 2024)


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What is Martha Stewart Living Omnimedia 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.

Martha Stewart Living Omnimedia has a Altman Z-Score of 3.04, 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 Martha Stewart Living Omnimedia's Altman Z-Score or its related term are showing as below:


Martha Stewart Living Omnimedia Altman Z-Score Historical Data

The historical data trend for Martha Stewart Living Omnimedia'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.

Martha Stewart Living Omnimedia Altman Z-Score Chart

Martha Stewart Living Omnimedia Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.93 2.50 - 0.70 1.01

Martha Stewart Living Omnimedia Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 0.23 1.01 3.18 2.50 3.09

Competitive Comparison of Martha Stewart Living Omnimedia's Altman Z-Score

For the Publishing subindustry, Martha Stewart Living Omnimedia'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.


Martha Stewart Living Omnimedia's Altman Z-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Martha Stewart Living Omnimedia's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Martha Stewart Living Omnimedia's Altman Z-Score falls into.



Martha Stewart Living Omnimedia 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.

Martha Stewart Living Omnimedia'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*0.3516+1.4*-2.8716+3.3*0.0115+0.6*9.4062+1.0*0.9559
=3.04

* 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 Sep. 2015:
Total Assets was $98.52 Mil.
Total Current Assets was $58.95 Mil.
Total Current Liabilities was $24.31 Mil.
Retained Earnings was $-282.91 Mil.
Pre-Tax Income was -1.169 + -2.425 + -2.319 + 7.042 = $1.13 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 17.46 + 18.244 + 17.052 + 41.417 = $94.17 Mil.
Market Cap (Today) was $339.76 Mil.
Total Liabilities was $36.12 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
=(58.946 - 24.31)/98.52
=0.3516

X2=Retained Earnings/Total Assets
=-282.907/98.52
=-2.8716

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1.129 - 0)/98.52
=0.0115

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=339.760/36.121
=9.4062

X5=Revenue/Total Assets
=94.173/98.52
=0.9559

The zones of discrimination were as such:

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

Martha Stewart Living Omnimedia has a Altman Z-Score of 3.04 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.


Martha Stewart Living Omnimedia  (NYSE:MSO) 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.


Martha Stewart Living Omnimedia Altman Z-Score Related Terms

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Martha Stewart Living Omnimedia (Martha Stewart Living Omnimedia) Business Description

Traded in Other Exchanges
N/A
Address
Martha Stewart Living Omnimedia Inc is an integrated media and merchandising company providing consumers with inspiring lifestyle content and well-designed, high-quality products. The Company is organized into three business segments: Publishing, Broadcasting and Merchandising. This combination enables it to cross-promote its content and products. Its Publishing segment consists of operations related to magazine and book publishing and digital distribution, mainly through its website, marthastewart.com. Its Broadcasting business segment consists of operations relating to the production of television programming, the domestic and international distribution of its library of programming in existing and repurposed formats. Its Merchandising segment consists of operations related to the design of merchandise and related packaging, collateral and advertising materials, and the licensing of various proprietary trademarks in connection with retail programs conducted through a number of retailers and manufacturers. The Company generally owns the copyrights in the programs it produce for television and radio distribution. In 2013, Martha Stewart's Cooking School season 2 and Martha Bakes seasons 1 and 2 aired on PBS. On January 31, 2013, the Company entered into a new two-year agreement with Sirius XM Radio to produce approximately 10 hours of original programming each week. This agreement with Sirius XM Radio replaces its historical Martha Stewart Living Radio channel with a daily radio show hosted by Martha Stewart, and other MSLO talent, on SiriusXM Stars. In 2010, the Company launched the Martha Stewart Living product line at The Home Depot, which is currently available at all of The Home Depots stores in the United States and Canada, as well as on homedepot.com and Home Decorators Collection catalog business. It competes with the internet businesses of the stores and other websites that sell similar retail goods.
Executives
Kenneth P West officer: EVP, Chief Financial Officer 10 EAST 40TH STREET, NEW YORK NY 10016
Margaret Mary Smyth director PO BOX 33428, ST. PAUL MN 55133
Daniel W Dienst director, officer: Chief Executive Officer 325 N. LASALLE ST., SUITE 550, CHICAGO IL 60610
William A Roskin director 1515 BROADWAY, NEW YORK NY 10036
Martha Stewart Family Limited Partnership 10 percent owner
Allison C Hoffman officer: EVP, General Counsel and Secy 315 EAST 68TH STREET, NEW YORK NY 10065
Martha Stewart director, 10 percent owner, officer: Chief Creative Officer C/O MARTHA STEWART LIVING OMNIMEDIA INC, 20 WEST 43RD STREET, NEW YORK NY 10036
Robert W Peterson director 800 NICOLLET MALL, J1012057, MINNEAPOLIS MN 55402-7020
Lisa Gersh officer: President, COO C/O HASBRO, INC., 1011 NEWPORT AVENUE, PAWTUCKET RI 02861
Todd J Slotkin director 35 EAST 62ND STREET, NEW YORK NY 10021
Charles Koppelman director 1330 AVENUE OF THE AMERICAS, SUITE 800, NEW YORK NY 10019
Dan E Walker director 6501 LEGACY DRIVE PLANO TX 75024
Michael W Kramer director 6301 FITCH PATH, NEW ALBANY OH 43054
Robin L Marino officer: President/CEO Merchandising MARTHA STEWART LIVING OMNIMEDIA, INC. 11 WEST 42ND STREET, 25TH FLOOR NEW YORK NY 10036
Michael Goldstein director 3 EAST 84 STREET, NEW YORK NY 10028

Martha Stewart Living Omnimedia (Martha Stewart Living Omnimedia) Headlines