GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Envela Corp (AMEX:ELA) » Definitions » Altman Z2-Score

ELA (Envela) Altman Z2-Score : 6.90 (As of Dec. 15, 2024)


View and export this data going back to 1992. Start your Free Trial

What is Envela 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.

Good Sign:

Envela has a Altman Z2-Score of 6.90, indicating it is in Safe Zones. This implies the Altman Z2-Score is strong.

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 Envela's Altman Z2-Score or its related term are showing as below:

ELA' s Altman Z2-Score Range Over the Past 10 Years
Min: -10.68   Med: 1.02   Max: 7.28
Current: 6.9

During the past 13 years, Envela's highest Altman Z2-Score was 7.28. The lowest was -10.68. And the median was 1.02.


Envela Altman Z2-Score Historical Data

The historical data trend for Envela'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.

Envela Altman Z2-Score Chart

Envela Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z2-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.32 2.96 4.15 6.55 6.98

Envela Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Altman Z2-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 7.02 6.98 6.95 7.28 6.90

Competitive Comparison of Envela's Altman Z2-Score

For the Luxury Goods subindustry, Envela'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.


Envela's Altman Z2-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Envela's Altman Z2-Score distribution charts can be found below:

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



Envela 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.

Envela'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*0.5261+3.26*0.1961+6.72*0.1142+1.05*1.9455
=6.90

* 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 Sep. 2024:
Total Assets was $77.4 Mil.
Total Current Assets was $51.5 Mil.
Total Current Liabilities was $10.8 Mil.
Retained Earnings was $15.2 Mil.
Pre-Tax Income was 2.255 + 2.025 + 2.458 + 1.65 = $8.4 Mil.
Interest Expense was -0.106 + -0.109 + -0.121 + -0.114 = $-0.5 Mil.
Total Liabilities was $26.3 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
=(51.536 - 10.823)/77.392
=0.5261

X2=Retained Earnings/Total Assets
=15.178/77.392
=0.1961

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(8.388 - -0.45)/77.392
=0.1142

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(51.117 - 0)/26.275
=1.9455

The zones of discrimination were as such:

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

Envela has a Altman Z2-Score of 6.90 indicating it is in Safe Zones.


Envela  (AMEX:ELA) 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.


Envela Altman Z2-Score Related Terms

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


Envela Business Description

Traded in Other Exchanges
N/A
Address
1901 Gateway Drive, Suite 100, Irving, TX, USA, 75038
Envela Corp and its subsidiaries engage in diverse business activities within the recommerce sector. These include re-commercializing luxury hard assets, consumer electronics and IT equipment; and end-of-life recycling solutions. It operates through two segments, Consumer, and Commercial Services. The Consumer segment which generates key revenue for the company predominantly buys to resell or recycle luxury hard assets like jewelry, diamonds, gemstones, fine watches, rare coins and related collectibles, precious-metal bullion products, gold, silver, and other precious metals. The Commercial Services segment provides asset-disposition solutions to government agencies, middle-market firms, corporations, and other organizations.
Executives
Allison M Destefano director 5353 KELLER SPRINGS, #2221, DALLAS TX 75248
Bret Allen Pedersen officer: CHIEF FINANCIAL OFFICER 13022 PRESTON RD, DALLAS TX 75240
Richard D Schepp director C/O KOHLS LEGAL, N56 W170000 RIDGEWOOD DR, MENOMONEE FALLS WI 53051
James R Ruth director 1337 EAGLE BEND DRIVE, SOUTHLAKE TX 76092
Alexandra C Griffin director 2500 MCKINNEY AVE., #839, DALLAS TX 75201
Joel S Friedman director 11527 ASHLEY LANE, FRISCO TX 75035
Eduro Holdings, Llc 10 percent owner 38660 SUSSEX HWY., BLDG 10, #102, DELMAR DE 19940-3529
John Richardson Loftus director, 10 percent owner, officer: Chairman, President & CEO 13022 PRESTON RD, DALLAS TX 75240
Truscott Capital, Llc 10 percent owner 40 E. MAIN STREET, SUITE 626, NEWARK DE 19711
Ntr Metals, Llc 10 percent owner 10720 COMPOSITE DRIVE, DALLAS TX 75220
Elemetal, Llc 10 percent owner 15850 DALLAS PARKWAY, DALLAS TX 75248
Stephen Raymond Patterson officer: Acting Chief Financial Officer 15850 DALLAS PARKWAY, SUITE 140, DALLAS TX 75248
William E Leroy director 15850 DALLAS PARKWAY, SUITE 140, DALLAS TX 75248
Michael J. Noel director 724 LEXINGTON AVE, COPPELL TX 75019
Nabil J. Lopez director, officer: Chief Financial Officer 15850 DALLAS PARKWAY, SUITE 140, DALLAS TX 75248