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GMRE (Global Medical REIT) Altman Z2-Score : -3.17 (As of Dec. 13, 2024)


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What is Global Medical REIT 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:

Global Medical REIT has a Altman Z2-Score of -3.17, 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 Global Medical REIT's Altman Z2-Score or its related term are showing as below:

GMRE' s Altman Z2-Score Range Over the Past 10 Years
Min: -3.17   Med: -2.02   Max: 5.91
Current: -3.17

During the past 13 years, Global Medical REIT's highest Altman Z2-Score was 5.91. The lowest was -3.17. And the median was -2.02.


Global Medical REIT Altman Z2-Score Historical Data

The historical data trend for Global Medical REIT'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.

Global Medical REIT Altman Z2-Score Chart

Global Medical REIT Annual Data
Trend Aug14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z2-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.77 -2.74 -1.96 -2.47 -2.66

Global Medical REIT 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 -2.30 -2.66 -2.74 -3.01 -3.17

Competitive Comparison of Global Medical REIT's Altman Z2-Score

For the REIT - Healthcare Facilities subindustry, Global Medical REIT'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.


Global Medical REIT's Altman Z2-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Global Medical REIT's Altman Z2-Score distribution charts can be found below:

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



Global Medical REIT 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.

Global Medical REIT'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*-0.5079+3.26*-0.2262+6.72*0.0261+1.05*0.6897
=-3.17

* 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 $1,242.6 Mil.
Total Current Assets was $18.0 Mil.
Total Current Liabilities was $649.1 Mil.
Retained Earnings was $-281.1 Mil.
Pre-Tax Income was 3.391 + -1.952 + 2.314 + 0.551 = $4.3 Mil.
Interest Expense was -7.236 + -6.992 + -6.89 + -6.984 = $-28.1 Mil.
Total Liabilities was $678.0 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
=(18.009 - 649.092)/1242.595
=-0.5079

X2=Retained Earnings/Total Assets
=-281.067/1242.595
=-0.2262

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(4.304 - -28.102)/1242.595
=0.0261

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(542.552 - 74.959)/677.989
=0.6897

The zones of discrimination were as such:

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

Global Medical REIT has a Altman Z2-Score of -3.17 indicating it is in Distress Zones.


Global Medical REIT  (NYSE:GMRE) 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.


Global Medical REIT Altman Z2-Score Related Terms

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Global Medical REIT Business Description

Traded in Other Exchanges
Address
7373 Wisconsin Avenue, Suite 800, Bethesda, MD, USA, 20814
Global Medical REIT Inc is a Maryland corporation engaged predominantly in the acquisition of purpose-built healthcare facilities and the leasing of those facilities to physician groups and regional and national healthcare systems. The company's principal business objective is to provide attractive, risk-adjusted returns to its stockholders through a combination of reliable dividends and long-term capital appreciation. Its healthcare facilities are located in secondary markets and suburbs of primary markets and are typically leased to single-tenants under triple-net leases.
Executives
Moore Roscoe M Jr director C/O HEMOBIOTECH, INC., 5001 SPRING VALLEY ROAD, SUITE 1040 WEST, DALLAS TX 75244
Henry Cole director 4800 MONTGOMERY LANE SUITE 450, BETHESDA MD 20814
Jeffrey Busch director, officer: Chairman, President and CEO 7373 WISCONSIN AVENUE, SUITE 800, BETHESDA MD 20814
Lori Wittman director 191 NORTH WACKER DRIVE, SUITE 1200, CHICAGO IL 60606
Matthew Cypher director 4800 MONTGOMERY LANE SUITE 450, BETHESDA MD 20814
Paula Crowley director 2 BETHESDA METRO CENTER, SUITE 440, BETHESDA MD 20814
Ronald Marston director 4800 MONTGOMERY LANE SUITE 450, BETHESDA MD 20814
Robert J Kiernan officer: Chief Financial Officer 7373 WISCONSIN AVENUE, SUITE 800, BETHESDA MD 20814
Alfonzo Leon officer: Chief Investment Officer 7373 WISCONSIN AVENUE, SUITE 800, BETHESDA MD 20814
Danica Holley officer: Chief Operating Officer 7373 WISCONSIN AVENUE, SUITE 800, BETHESDA MD 20814
Jamie Allen Barber officer: Secretary and General Counsel 7373 WISCONSIN AVENUE, SUITE 800, BETHESDA MD 20814
Allen Webb officer: SVP 4800 MONTGOMERY LANE SUITE 450, BETHESDA MD 20814
Huiqi Zhang director, 10 percent owner 40-44 WYNDHAM STREET, 24/F WYNDHAM PLACE, HONG KONG K3 00000
Notable Reward Ltd 10 percent owner VISTRA CORPORATE SERVICES CENTRE, WICKHAMS CAY II, ROAD TOWN TORTOLA D8 VG1110
Superior Glory Enterprises Ltd. 10 percent owner VISTRA CORPORATE SERVICES CENTRE, WICKHAMS CAY II, ROAD TOWN TORTOLA D8 VG1110