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JFrog (FROG) Altman Z2-Score : 2.92 (As of Dec. 14, 2024)


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What is JFrog 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:

JFrog has a Altman Z2-Score of 2.92, 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 JFrog's Altman Z2-Score or its related term are showing as below:

FROG' s Altman Z2-Score Range Over the Past 10 Years
Min: 1.98   Med: 3.89   Max: 10.14
Current: 2.92

During the past 6 years, JFrog's highest Altman Z2-Score was 10.14. The lowest was 1.98. And the median was 3.89.


JFrog Altman Z2-Score Historical Data

The historical data trend for JFrog'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.

JFrog Altman Z2-Score Chart

JFrog Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z2-Score
Get a 7-Day Free Trial 1.98 8.87 4.56 3.58 3.67

JFrog 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 3.61 3.67 4.02 4.03 2.92

Competitive Comparison of JFrog's Altman Z2-Score

For the Software - Application subindustry, JFrog'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.


JFrog's Altman Z2-Score Distribution in the Software Industry

For the Software industry and Technology sector, JFrog's Altman Z2-Score distribution charts can be found below:

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



JFrog 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.

JFrog'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*0.2786+3.26*-0.3113+6.72*-0.0508+1.05*2.3291
=2.92

* 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 $1,080.9 Mil.
Total Current Assets was $593.4 Mil.
Total Current Liabilities was $292.2 Mil.
Retained Earnings was $-336.5 Mil.
Pre-Tax Income was -24.215 + -12.229 + -9.549 + -8.967 = $-55.0 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.0 Mil.
Total Liabilities was $324.7 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
=(593.376 - 292.22)/1080.889
=0.2786

X2=Retained Earnings/Total Assets
=-336.47/1080.889
=-0.3113

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-54.96 - 0)/1080.889
=-0.0508

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(756.206 - 0)/324.683
=2.3291

The zones of discrimination were as such:

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

JFrog has a Altman Z2-Score of 2.92 indicating it is in Safe Zones.


JFrog  (NAS:FROG) 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.


JFrog Altman Z2-Score Related Terms

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JFrog Business Description

Traded in Other Exchanges
N/A
Address
270 E. Caribbean Drive, Sunnyvale, CA, USA, 94089
JFrog Ltd provides an end-to-end, hybrid, universal DevOps Platform that powers and controls the software supply chain, enabling organizations to continuously and securely deliver software updates across any system. Its product portfolio includes JFrog Artifactory; JFrog Pipelines; JFrog Xray; JFrog Distribution; JFrog Artifactory Edge; JFrog Mission Control and JFrog Insight. Geographically, it derives a majority of revenue from Israel and also has its presence in United States, India and other regions.
Executives
Tali Notman officer: Chief Revenue Officer C/O JFROG LTD, 270 E CARIBBEAN DRIVE, SUNNYVALE CA 94089
Ben Haim Shlomi director, officer: Chief Executive Officer C/O JFROG LTD, 270 E CARIBBEAN DRIVE, SUNNYVALE CA 94089
Frederic Simon director C/O JFROG LTD, 270 E. CARIBBEAN DRIVE, SUNNYVALE CA 94089
Yoav Landman director, officer: Chief Technology Officer C/O JFROG LTD, 270 E CARIBBEAN DRIVE, SUNNYVALE CA 94089
Yossi Sela director, 10 percent owner GEMINI ISRAEL FUNDS, 9 HAMENOFIM STREET, HERZLIYA PITUACH L3 46725
Elisa Steele director 1601 CLOVERFIELD BLVD, STE 620 SOUTH, SANTA MONICA CA 90404
Yakov (jacob) Shulman officer: Chief Financial Officer C/O MELLANOX TECHNOLOGIES, INC., 350 OAKMEAD PARKWAY, SUITE 100, SUNNYVALE CA 94085
Jeff Horing director INSIGHT PARTNERS, 680 5TH AVENUE 8TH FLOOR, NEW YORK NY 10019
Yvonne Wassenaar director C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Meerah Rajavel director C/O JFROG LTD., 270 E CARIBBEAN DRIVE, SUNNYVALE CA 94089
Andrew L. Vitus director, 10 percent owner C/O SCALE VENTURE PARTNERS, 950 TOWER LANE, SUITE 700, FOSTER CITY CA 94404
Gemini Israel V Limited Partnership 10 percent owner 1 ABBA EBAN AVENUE, MERKAZIM 2001,, BLDG A, 3RD FLOOR, HERZLIYA L3 00000
Scale Venture Partners Iv, L.p. 10 percent owner 950 TOWER LANE, SUITE 1150, FOSTER CITY CA 94404
Stacey Bishop 10 percent owner 950 TOWER LANE, SUITE 700, FOSTER CITY CA 94404
Barry Zwarenstein director C/O IOMEGA CORP, 4435 EASTGATE MALL 3RD FLOOR, SAN DIEGO CA 92121