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IEC Electronics (IEC Electronics) Altman Z-Score : 2.54 (As of Apr. 26, 2024)


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What is IEC Electronics Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of 2.54 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

IEC Electronics has a Altman Z-Score of 2.54, indicating it is in Grey Zones. This implies that IEC Electronics is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for IEC Electronics's Altman Z-Score or its related term are showing as below:

IEC' s Altman Z-Score Range Over the Past 10 Years
Min: -6.38   Med: 2.25   Max: 6.17
Current: 2.54

During the past 13 years, IEC Electronics's highest Altman Z-Score was 6.17. The lowest was -6.38. And the median was 2.25.


IEC Electronics Altman Z-Score Historical Data

The historical data trend for IEC Electronics's Altman Z-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.

IEC Electronics Altman Z-Score Chart

IEC Electronics Annual Data
Trend Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.35 2.27 1.85 2.43 2.69

IEC Electronics Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Altman Z-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 2.89 2.69 2.49 2.28 2.27

Competitive Comparison of IEC Electronics's Altman Z-Score

For the Electronic Components subindustry, IEC Electronics's Altman Z-Score, along with its competitors' market caps and Altman Z-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.


IEC Electronics's Altman Z-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, IEC Electronics's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where IEC Electronics's Altman Z-Score falls into.



IEC Electronics Altman Z-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.

IEC Electronics's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.3422+1.4*-0.04+3.3*0.0435+0.6*1.4104+1.0*1.1959
=2.54

* 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 Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2021:
Total Assets was $157.8 Mil.
Total Current Assets was $100.9 Mil.
Total Current Liabilities was $46.9 Mil.
Retained Earnings was $-6.3 Mil.
Pre-Tax Income was 1.291 + -0.72 + 1.764 + 2.617 = $5.0 Mil.
Interest Expense was -0.587 + -0.545 + -0.457 + -0.327 = $-1.9 Mil.
Revenue was 49.37 + 45.36 + 47.481 + 46.445 = $188.7 Mil.
Market Cap (Today) was $163.6 Mil.
Total Liabilities was $116.0 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
=(100.935 - 46.949)/157.752
=0.3422

X2=Retained Earnings/Total Assets
=-6.307/157.752
=-0.04

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(4.952 - -1.916)/157.752
=0.0435

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=163.641/116.028
=1.4104

X5=Revenue/Total Assets
=188.656/157.752
=1.1959

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

IEC Electronics has a Altman Z-Score of 2.54 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


IEC Electronics  (NAS:IEC) Altman Z-Score Explanation

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, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


IEC Electronics Altman Z-Score Related Terms

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IEC Electronics (IEC Electronics) Business Description

Traded in Other Exchanges
N/A
Address
105 Norton Street, Newark, NY, USA, 14513
IEC Electronics Corp operates in an electronics contract manufacturing services (EMS) industry. It provides electronic manufacturing services to advanced technology companies primarily in the medical, industrial, aerospace and defense sectors. Its offerings include on-site analytical testing laboratories, custom design, and test engineering services. The firm also offers a broad array of manufacturing services encompassing electronics, interconnect solutions and precision metalworking. The majority of its revenue is derived from the sale of electronic products.
Executives
Jeremy R Nowak director C/O API TECHNOLOGIES CORP ONE NORTH WACKER DRIVE SUITE 4400 CHICAGO IL 60606
Charles P Hadeed director 35 VANTAGE POINT DRIVE, ROCHESTER NY 14624
Jeffrey T Schlarbaum director, officer: President and CEO 105 NORTON STREET, NEWARK NY 14513
Michael W Osborne director 105 NORTON STREET NEWARK NY 14513
Andrew M Laurence director C/O API TECHNOLOGIES CORP., ONE NORTH WACKER DRIVE SUITE 4400, CHICAGO IL 60606
Keith M Butler director 105 NORTON STREET NEWARK NY 14513
Thomas L Barbato officer: CFO 105 NORTON STREET, NEWARK NY 14513
Lynn J Hartrick director 105 NORTON STREET NEWARK NY 14513
Michael Thomas Williams officer: VP, Finance and CFO 54 BARCHAN DUNE RISE VICTOR NY 14564
Jens Hauvn officer: SVP, Operations C/O IEC ELECTRONICS CORP. 105 NORTON STREET NEWARK NY 14513
Eric Singer director 323 SUNNY ISLES BLVD., SUITE 700, SUNNY ISLES BEACH FL 33160
W Barry Gilbert officer: CEO & Chairman of the Board C/O IEC ELECTRONICS CORP. NEWARK NY 14513
Brett Eugene Mancini officer: VP Bus Devel & Eng Serv 12 SANDPIPER LANE PITTSFORD NY 14534
John Carlton Johnson director 24450 MEADOW ROAD PO BOX 1093 CLARK CO 80428
Florence Distefano Hudson director 1 WINSOR PLACE PURCHASE NY 10577