Qorvo (NAS:QRVO) Altman Z2-Score

: 4.09 (As of Today)

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Good Sign:

Qorvo has a Altman Z2-Score of 4.09, 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 Qorvo's Altman Z2-Score or its related term are showing as below:

QRVO' s Altman Z2-Score Range Over the Past 10 Years
Min: 3.27 Med: 4.33 Max: 10.06
Current: 4.09

During the past 10 years, Qorvo's highest Altman Z2-Score was 10.06. The lowest was 3.27. And the median was 4.33.

Qorvo Altman Z2-Score Historical Data

The historical data trend for Qorvo'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.

Qorvo Annual Data

Trend

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Altman Z2-Score

4.41

4.55

3.61

4.49

4.50

Qorvo Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
Altman Z2-Score																4.48	4.54	4.50	4.07	4.09

Competitive Comparison

For the Semiconductors subindustry, Qorvo'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

Qorvo Altman Z2-Score Distribution

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

* The bar in red indicates where Qorvo'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.

Qorvo 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.

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

6.56

3.26

6.72

1.05

X4_2

6.56

0.2383

3.26

0.0607

6.72

0.1253

1.05

1.4159

4.09

Trailing Twelve Months (TTM) ended in Sep. 2022:
Total Assets was $7,375 Mil.
Total Current Assets was $2,521 Mil.
Total Current Liabilities was $764 Mil.
Retained Earnings was $448 Mil.
Pre-Tax Income was 246.872 + 79.545 + 247.469 + 283.214 = $857 Mil.
Interest Expense was -16.904 + -17.252 + -17.392 + -15.328 = $-67 Mil.
Total Liabilities was $3,053 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
	=	(2521.284 - 764.127)	/	7374.732
	=	0.2383

X2	=	Retained Earnings	/	Total Assets
	=	447.947	/	7374.732
	=	0.0607

X3	=	Earnings Before Interest and Taxes	/	Total Assets
	=	(Pre-Tax Income - Interest Expense)	/	Total Assets
	=	(857.1 - -66.876)	/	7374.732
	=	0.1253

X4_2	=	Net Worth	/	Total Liabilities
	=	(Total Stockholders Equity - Preferred Stock)	/	Total Liabilities
	=	(4322.14 - 0)	/	3052.592
	=	1.4159

The zones of discrimination were as such:

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

Qorvo has a Altman Z2-Score of 4.09 indicating it is in Safe Zones.

Qorvo (NAS:QRVO) 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.

Qorvo Altman Z2-Score Related Terms

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

Qorvo (NAS:QRVO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Qorvo Inc (NAS:QRVO) » Definitions » Altman Z2-Score

Comparable Companies

Traded in Other Exchanges

2QO:Germany Q1RV34:Brazil

Address

7628 Thorndike Road, Greensboro, NC, USA, 27409-9421

Website

http://www.qorvo.com

Qorvo represents the combined entity of RF Micro Devices and TriQuint Semiconductor, which merged with one another in January 2015. The company specializes in radio frequency filters, power amplifiers, and front-end modules used in many of the world's most advanced smartphones. Qorvo also has a suite of products sold into a variety of nonsmartphone end markets, such as wireless base stations, cable TV and networking equipment, and infrastructure and military applications.

Executives

Brown Grant	officer: VP of Treasury & Interim CFO	7628 THORNDIKE ROAD GREENSBORO NC 27409
Chesley Philip	officer: Pres. Infra & Defense	7628 THORNDIKE ROAD GREENSBORO NC 27409
Bruner Judy	director	C/O SANDISK CORPORATION 601 MCCARTHY BLVD. MILPITAS CA 95035
Fego Paul J	officer: VP, Global Operations	15 SECOR ROAD PO BOX 5226 BROOKFIELD CT 06804
Spradley Susan Louise	director	C/O NORTEL NETWORKS 8200 DIXIE ROAD STE 100 BRAMPTON ONTARIO A6 L6T 5PT
Murphy Mark J.	officer: Chief Financial Officer	DELPHI AUTOMOTIVE PLC 5725 DELPHI DRIVE TROY MI 48098
Harrison Gina	officer: VP and Corporate Controller	7628 THORNDIKE ROAD GREENSBORO NC 27409
Quinsey Ralph	director	C/O TRIQUINT SEMICONDUCTOR INC 2300 NE BROOKWOOD PKWY HILLSBORO OR 97124
Laber Michael J.	officer: VP and Corporate Controller	2300 NE BROOKWOOD PARKWAY HILLSBORO OR 97124
Buhaly Steven J	officer: CFO and Secretary	1195 NW LOMPTON DRIVE BEAVESTON OR 97006
Dileo Daniel A	director	C/O RF MICRO DEVICES 7628 THORNDIKE ROAD GREENSBORO NC 27409
Gibson C Scott	director	PMB 316, PO BOX 30,000 JACKSON WY 83002
Nelson Roderick	director	2300 NE BROOKWOOD PARKWAY HILLSBORO OR 97124
Ho David H Y	director	5500 WAYZATA BOULEVARD SUITE 600 GOLDEN VALLEY MN 55416
Wilkinson Walter H	director	C/O RF MICRO DEVICES, INC. 7628 THORNDIKE ROAD GREENSBORO NC 27409