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BENF (Beneficient) Altman Z2-Score : -41.99 (As of Oct. 31, 2024)


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What is Beneficient Altman Z2-Score?

Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.

Warning Sign:

Beneficient has a Altman Z2-Score of -41.99, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.

The historical rank and industry rank for Beneficient's Altman Z2-Score or its related term are showing as below:

BENF' s Altman Z2-Score Range Over the Past 10 Years
Min: -70.13   Med: -5.58   Max: 6.49
Current: -41.99

During the past 5 years, Beneficient's highest Altman Z2-Score was 6.49. The lowest was -70.13. And the median was -5.58.


Beneficient Altman Z2-Score Historical Data

The historical data trend for Beneficient's Altman Z2-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.

Beneficient Altman Z2-Score Chart

Beneficient Annual Data
Trend Dec20 Dec21 Mar22 Mar23 Mar24
Altman Z2-Score
- - 0.35 6.49 -70.13

Beneficient Quarterly Data
Dec20 Mar21 Dec21 Mar22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Altman Z2-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.58 -8.55 -45.03 -70.13 -41.99

Competitive Comparison of Beneficient's Altman Z2-Score

For the Asset Management subindustry, Beneficient's Altman Z2-Score, along with its competitors' market caps and Altman Z2-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.


Beneficient's Altman Z2-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Beneficient's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where Beneficient's Altman Z2-Score falls into.



Beneficient Altman Z2-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.

Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.

Beneficient's Altman Z2-Score for today is calculated with this formula:

Z=6.56*X1+3.26*X2+6.72*X3+1.05*X4_2
=6.56*0.5591+3.26*-5.5675+6.72*-3.9829+1.05*-0.7062
=-41.99

* 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 Z2-Score when X4_2 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2024:
Total Assets was $361.30 Mil.
Total Current Assets was $305.02 Mil.
Total Current Liabilities was $103.01 Mil.
Retained Earnings was $-2,011.55 Mil.
Pre-Tax Income was 44.338 + -194.861 + -924.797 + -381.764 = $-1,457.08 Mil.
Interest Expense was -4.288 + -3.99 + -4.671 + -5.114 = $-18.06 Mil.
Total Liabilities was $258.54 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
=(305.02 - 103.012)/361.304
=0.5591

X2=Retained Earnings/Total Assets
=-2011.547/361.304
=-5.5675

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-1457.084 - -18.063)/361.304
=-3.9829

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(-182.583 - 0)/258.542
=-0.7062

The zones of discrimination were as such:

Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones

Beneficient has a Altman Z2-Score of -41.99 indicating it is in Distress Zones.


Beneficient  (NAS:BENF) Altman Z2-Score Explanation

The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.

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_2, Net Worth (Total Stockholders Equity - Preferred Stock)/Total Liabilities (NW/TL): it compares a company’s stock net worth with its total liabilities and can be used to assess the extent of its reliance on debt.

Read more about Altman Z2-Score, the original research on Z-Score and the additional research on Z2-Score.


Be Aware

Altman Z2-Score does not apply to financial companies.


Beneficient Altman Z2-Score Related Terms

Thank you for viewing the detailed overview of Beneficient's Altman Z2-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Beneficient Business Description

Traded in Other Exchanges
N/A
Address
325 N. Saint Paul Street, Suite 4850, Dallas, TX, USA, 75201
Beneficient is a technology-enabled financial services holding company that (together with its subsidiaries) provides simple, rapid, and cost-effective liquidity solutions to participants in the alternative asset industry through its end-to-end online platform, AltAccess. BCG's products and services are designed to meet the unmet needs of mid-to-high net-worth individual investors, small-to-midsize institutional investors, family offices, and fund general partners. Its bespoke liquidity solutions for otherwise illiquid alternative asset investments are delivered through proprietary technology and an innovative financing and trust structure. It has three reportable segments consisting of Ben Liquidity, Ben Custody and Customer ExAlt Trusts.
Executives
Gwg Wind Down Trust 10 percent owner PO BOX 61209, 700 SMITH ST., HOUSTON TX 77208-1209
Jeff Welday officer: See Remarks 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Cangany Peter T Jr director 220 SOUTH 6TH STREET, SUITE 1200, MINNEAPOLIS MN 55402
Elizabeth C. Freeman 10 percent owner PO BOX 61209, 700 SMITH ST., HOUSTON TX 77208-1209
Derek L. Fletcher director, officer: See Remarks 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Gwg Life Usa, Llc 10 percent owner 325 NORTH ST. PAUL STREET, SUITE 2650, DALLAS TX 75201
Gregory W. Ezell officer: Chief Financial Officer 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Maria S. Rutledge officer: Chief Technology Officer 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Scott W. Wilson officer: Chief Underwriting Officer 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Samuel Hikspoors officer: Chief Risk Officer 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Richard W Fisher director
James G. Silk director, officer: See Remarks 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Emily B. Hill director 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Gwg Holdings, Inc. 10 percent owner 325 N. ST. PAUL STREET, SUITE 2650, DALLAS TX 75201
Brad K Heppner director, officer: See Remarks 325 N SAINT PAUL STREET, SUITE 1200, DALLAS TX 75201