Peloton Interactive (NAS:PTON) Altman Z2-Score

: -7.77 (As of Today)

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Warning Sign:

Peloton Interactive has a Altman Z2-Score of -7.77, 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 Peloton Interactive's Altman Z2-Score or its related term are showing as below:

PTON' s Altman Z2-Score Range Over the Past 10 Years
Min: -7.77 Med: 1.43 Max: 4.49
Current: -7.77

During the past 6 years, Peloton Interactive's highest Altman Z2-Score was 4.49. The lowest was -7.77. And the median was 1.43.

Peloton Interactive Altman Z2-Score Historical Data

The historical data trend for Peloton Interactive'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.

Peloton Interactive Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Altman Z2-Score

-2.09

3.49

2.06

-4.94

Peloton Interactive Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Altman Z2-Score																-1.64	-4.94	-6.34	-7.49	-7.77

Competitive Comparison

For the Leisure subindustry, Peloton Interactive'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.

Annual Data Quarterly Data

Peloton Interactive Altman Z2-Score Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Peloton Interactive's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where Peloton Interactive's Altman Z2-Score falls in comparison to its industry or sector. The grey bar indicates the Altman Z2-Score's extreme value range as defined by GuruFocus.

Peloton Interactive 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.

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

6.56

3.26

6.72

1.05

X4_2

6.56

0.333

3.26

-1.5549

6.72

-0.7205

1.05

-0.0404

-7.77

Trailing Twelve Months (TTM) ended in Mar. 2023:
Total Assets was $3,016 Mil.
Total Current Assets was $1,818 Mil.
Total Current Liabilities was $813 Mil.
Retained Earnings was $-4,690 Mil.
Pre-Tax Income was -275.2 + -333.5 + -407.7 + -1243.1 = $-2,260 Mil.
Interest Expense was -26.6 + -22.2 + -20.9 + -16.5 = $-86 Mil.
Total Liabilities was $3,143 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
	=	(1817.6 - 813.2)	/	3016.3
	=	0.333

X2	=	Retained Earnings	/	Total Assets
	=	-4690	/	3016.3
	=	-1.5549

X3	=	Earnings Before Interest and Taxes	/	Total Assets
	=	(Pre-Tax Income - Interest Expense)	/	Total Assets
	=	(-2259.5 - -86.2)	/	3016.3
	=	-0.7205

X4_2	=	Net Worth	/	Total Liabilities
	=	(Total Stockholders Equity - Preferred Stock)	/	Total Liabilities
	=	(-127.1 - 0)	/	3143.4
	=	-0.0404

The zones of discrimination were as such:

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

Peloton Interactive has a Altman Z2-Score of -7.77 indicating it is in Distress Zones.

Peloton Interactive (NAS:PTON) 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.

Be Aware

Altman Z2-Score does not apply to financial companies.

Peloton Interactive Altman Z2-Score Related Terms

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Peloton Interactive (NAS:PTON) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Peloton Interactive Inc (NAS:PTON) » Definitions » Altman Z2-Score

Comparable Companies

Traded in Other Exchanges

PTON:Mexico 0A46:UK 2ON:Germany PTON:Austria

Address

441 Ninth Avenue, Sixth Floor, New York, NY, USA, 10001

Website

https://www.onepeloton.com

Peloton Interactive Inc operates an interactive fitness platform. It operates its business in two reportable segments: Connected Fitness Products and Subscription. Connected Fitness Product revenue consists of sales of bike and tread and related accessories, associated fees for delivery and installation, and extended warranty agreements. Subscription revenue consists of revenue generated from monthly Connected Fitness Subscription and Digital Subscription. The company generates the majority of the revenue from the sale of Connected Fitness Products.

Executives

Saqib Baig	officer: Chief Accounting Officer	C/O PELOTON INTERACTIVE, INC., 441 NINTH AVENUE, SIXTH FLOOR, NEW YORK NY 10001
Jennifer Cunningham Cotter	officer: Chief Content Officer	C/O PELOTON INTERACTIVE, INC., 441 NINTH AVENUE, SIXTH FLOOR, NEW YORK NY 10001
Elizabeth F Coddington	officer: Chief Financial Officer	C/O PELOTON INTERACTIVE, INC., 441 NINTH AVENUE, SIXTH FLOOR, NEW YORK NY 10001
Andrew S Rendich	officer: Chief Supply Chain Officer	100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Barry Mccarthy	director, officer: CEO and President	100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Jonathan Mildenhall	director	C/O GRAUBARD MILLER, 405 LEXINGTON AVENUE, NEW YORK NY 10174
Angel L Mendez	director	C/O SLEEP NUMBER CORPORATION, 1001 THIRD AVENUE SOUTH, MINNEAPOLIS MN 55404
Jay C Hoag	director	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Kevin Cornils	officer: Chief Commercial Officer	C/O PELOTON INTERACTIVE, INC., 441 NINTH AVENUE, SIXTH FLOOR, NEW YORK NY 10001
Tcv Ix (a), L.p.	other: May be part of 13(d) group	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Tcv X (a), L.p.	other: May be part of 13(d) group	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Tcv X Cycle (mf), L.p.	other: May be part of 13(d) group	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Tcv Ix, L.p.	10 percent owner, other: May be part of 13(d) group	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Tcv Ix Cycle, L.p.	10 percent owner, other: May be part of 13(d) group	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Technology Crossover Management X, Ltd.	other: May be part of 13(d) group	C/O TECHNOLOGY CROSSOVER VENTURES, 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025