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Nanophase Technologies (Nanophase Technologies) Altman Z-Score : -1.34 (As of Apr. 26, 2024)


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What is Nanophase Technologies 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.

Warning Sign:

Altman Z-score of -2.43 is in distress zone. This implies bankruptcy possibility in the next two years.

Nanophase Technologies has a Altman Z-Score of -1.34, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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 Nanophase Technologies's Altman Z-Score or its related term are showing as below:

NANX' s Altman Z-Score Range Over the Past 10 Years
Min: -22.76   Med: -14.81   Max: 2.99
Current: -2.43

During the past 13 years, Nanophase Technologies's highest Altman Z-Score was 2.99. The lowest was -22.76. And the median was -14.81.


Nanophase Technologies Altman Z-Score Historical Data

The historical data trend for Nanophase Technologies'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.

Nanophase Technologies Altman Z-Score Chart

Nanophase Technologies 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 -13.81 -6.70 2.99 -1.99 -3.07

Nanophase Technologies Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -2.31 -1.91 -2.80 -3.07 -

Competitive Comparison of Nanophase Technologies's Altman Z-Score

For the Specialty Chemicals subindustry, Nanophase Technologies'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.


Nanophase Technologies's Altman Z-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Nanophase Technologies's Altman Z-Score distribution charts can be found below:

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



Nanophase Technologies 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.

Nanophase Technologies'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*0.2571+1.4*-2.695+3.3*-0.0371+0.6*2.1089+1.0*0.9794
=-1.34

* 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 $38.50 Mil.
Total Current Assets was $22.08 Mil.
Total Current Liabilities was $12.18 Mil.
Retained Earnings was $-103.77 Mil.
Pre-Tax Income was 0.893 + -2.122 + -1.436 + 0.333 = $-2.33 Mil.
Interest Expense was -0.218 + -0.225 + -0.214 + -0.246 = $-0.90 Mil.
Revenue was 9.868 + 8.011 + 7.958 + 11.872 = $37.71 Mil.
Market Cap (Today) was $70.76 Mil.
Total Liabilities was $33.55 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
=(22.076 - 12.177)/38.504
=0.2571

X2=Retained Earnings/Total Assets
=-103.77/38.504
=-2.695

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-2.332 - -0.903)/38.504
=-0.0371

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=70.761/33.553
=2.1089

X5=Revenue/Total Assets
=37.709/38.504
=0.9794

The zones of discrimination were as such:

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

Nanophase Technologies has a Altman Z-Score of -1.34 indicating it is in Distress Zones.

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


Nanophase Technologies  (OTCPK:NANX) 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.


Nanophase Technologies Altman Z-Score Related Terms

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Nanophase Technologies (Nanophase Technologies) Business Description

Traded in Other Exchanges
N/A
Address
1319 Marquette Drive, Romeoville, IL, USA, 60446
Nanophase Technologies Corp is a U.S based company engaged in the production of engineered nanomaterial solutions and larger, sub-micron, materials such as personal care sunscreens, architectural coatings, industrial coating applications, and abrasion-resistant additives, plastics additives, medical diagnostics, energy. Its technologies are designed to offer nanomaterial solutions for a specific customer application across various industries. Its products include Aluminum Oxide, Antimony Tin Oxide, Bismuth Oxide, Cerium Oxide, Iron Oxide and Zinc Oxide. The firm categorizes its revenue stream into three main product categories, Personal Care Ingredients, Advanced Materials and Solesence. Substantial revenue is generated from the sale of Solesence finished products.
Executives
Jess Jankowski officer: Chief Financial Officer
R Janet Whitmore director
Bradford T Whitmore 10 percent owner 5215 OLD ORCHARD ROAD, SUITE 620, SKOKIE IL 60077
Mark E Miller director 1319 MARQUETTE DR, ROMEOVILLE IL 60446
Kevin Cureton officer: VP, Sales & Marketing & BD 1319 MARQUETTE DRIVE, ROMEOVILLE IL 60446
Strandler, Llc 10 percent owner 401 3RD STREET, #9, RAPID CITY SD 57701
Laura M Beres director 1319 MARQUETTE DR, ROMEOVILLE IL 60446
Jaime Escobar officer: Chief Financial Officer 1319 MARQUETTE DRIVE, ROMEOVILLE IL 60446
Frank Cesario officer: Chief Financial Officer C/O ISCO INTERNATIONAL INC, 451 KIGSTON COURT, MT PROSPECT IL 60056
James A Henderson director 301 WASHINGTON ST, COLUMBUS IN 47201
George A Vincent director C/O NANOPHASE TECHNOLOGIES, 1319 MARQUETTE DRIVE, ROMEOVILLE IL 60446
Spurgeon Corp 10 percent owner 407 S. THIRD STREET, SUITE 230, GENEVA IL 60134
W Edwin Tyler director ONE NORTH WACKER DRIVE, SUITE 4200, CHICAGO IL 60606
Nancy Baldwin officer: VP Human Resources & IT 1319 MARQUETTE DRIVE, ROMEOVILLE IL 60446
Patrick G Murray officer: VP Research & Development 1319 MARQUETTE DRIVE, ROMEOVILLE IL 60446