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:
FleetMatics Group has a Altman Z2-Score of 6.62, 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 FleetMatics Group's Altman Z2-Score or its related term are showing as below:
FleetMatics Group Altman Z2-Score Historical Data
The historical data trend for FleetMatics Group'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.
Competitive Comparison of FleetMatics Group's Altman Z2-Score
For the Software - Application subindustry, FleetMatics Group'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.
FleetMatics Group's Altman Z2-Score Distribution in the Software Industry
For the Software industry and Technology sector, FleetMatics Group's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where FleetMatics Group's Altman Z2-Score falls into.
FleetMatics Group 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.
FleetMatics Group'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
*
0.4114
+
3.26
*
-0.0063
+
6.72
*
0.0718
+
1.05
*
3.2944
=
6.62
* 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.
Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones
FleetMatics Group has a Altman Z2-Score of 6.62 indicating it is in Safe Zones.
FleetMatics Group (NYSE:FLTX) 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.
Altman Z2-Score does not apply to financial companies.
FleetMatics Group Altman Z2-Score Related Terms
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FleetMatics Group (FleetMatics Group) Business Description
FleetMatics Group PLC was incorporated in Ireland on October 28, 2004 as a private limited company. The Company is a holding company and conduct substantially all of its business through its wholly-owned operating subsidiaries, FleetMatics IRL Limited, FleetMatics UK Limited, FleetMatics USA, LLC, SageQuest LLC, and Connect2Field Pty Ltd. It is a provider of fleet management solutions delivered as software-as-a-service, or SaaS. Its mobile software platform enables businesses to meet the challenges associated with managing their local fleets of commercial vehicles and improve productivity by extracting actionable business intelligence from vehicle and driver behavioral data. The Company offers intuitive, cost-effective Web-based and mobile application solutions that provide fleet operators with visibility into vehicle location, fuel usage, speed and mileage and other insights into their mobile workforce, enabling them to reduce operating and capital costs, as well as increase revenue. As of December 31, 2013, the Company had approximately 22,000 customers who collectively deployed its solutions in over 445,000 vehicles worldwide. The substantial majority of its customers are small and medium-sized businesses, or SMBs, each of which deploys its solutions in 1,000 or fewer vehicles. Many SMBs manage their local fleets by using manual processes, such as entering data on time sheets and communicating with mobile employees using cellular phones, which generate minimal actionable business intelligence. Its multi-tenant SaaS solutions are designed to meet the needs of SMBs, overcome existing barriers to adoption, and leverage the volumes of data transmitted to them from in-vehicle devices over cellular networks that they aggregate and analyze from its large and growing subscriber base. By using its solutions to extract actionable business intelligence from the data on their fleet and mobile workforce, fleet operators gain greater control over fuel, maintenance, labor and other costs while improving the return on capital invested in their fleet. The Company's SaaS solutions enable businesses to meet the challenges associated with managing their local fleets by extracting actionable business intelligence from vehicle and driver behavioral data. Its fleet management solutions can be accessed over personal computers, tablets or smart phones. The Company's Fleet Tracking Alerts allow fleet operators to set driver performance thresholds and receive email notifications when unwanted driving behavior occurs. Notifications are sent when a vehicle enters or exits specified areas, moves during specified times, or when a vehicle's speed or idle time exceeds specified thresholds. Its Route Replay feature allows customers to play back each journey taken by their vehicles, from start up to shut down and provides customers with minute-by-minute location and speed details. Its marketing programs target owners and managers in the service and distribution
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