RCAT (Red Cat Holdings) Altman Z2-Score : -9.65 (As of Mar. 25, 2025)

Red Cat Holdings Altman Z2-Score Chart

Red Cat Holdings Annual Data
	Trend	Dec14	Dec15	Dec16	Dec17	Dec18	Apr20	Apr21	Apr22	Apr23	Apr24
Altman Z2-Score		Get a 7-Day Free Trial					-6.68	-12.16	13.33	6.69	3.29

Red Cat Holdings Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
Altman Z2-Score	Get a 7-Day Free Trial															4.69	4.31	3.29	-3.90	-9.65

Competitive Comparison of Red Cat Holdings's Altman Z2-Score

For the Computer Hardware subindustry, Red Cat Holdings'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.

Red Cat Holdings's Altman Z2-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Red Cat Holdings's Altman Z2-Score distribution charts can be found below:

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

Red Cat Holdings 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.

Red Cat Holdings's Altman Z2-Score for today is calculated with this formula:

* 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 Oct. 2024:
Total Assets was $51.09 Mil.
Total Current Assets was $20.91 Mil.
Total Current Liabilities was $14.67 Mil.
Retained Earnings was $-106.88 Mil.
Pre-Tax Income was -13.335 + -12.416 + -6.688 + -4.189 = $-36.63 Mil.
Interest Expense was 0 + 0 + -0.012 + -0.016 = $-0.03 Mil.
Total Liabilities was $24.06 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

The zones of discrimination were as such:

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

Red Cat Holdings has a Altman Z2-Score of -9.65 indicating it is in Distress Zones.

Red Cat Holdings  (NAS:RCAT) 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.

Red Cat Holdings Altman Z2-Score Related Terms

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Red Cat Holdings Business Description