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Arax Holdings (Arax Holdings) Altman Z-Score : 216.31 (As of Jul. 24, 2024)


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What is Arax Holdings 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.

Good Sign:

Altman Z-score of 273.44 is strong.

Arax Holdings has a Altman Z-Score of 216.31, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

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 Arax Holdings's Altman Z-Score or its related term are showing as below:

ARAT' s Altman Z-Score Range Over the Past 10 Years
Min: -108.27   Med: 142.15   Max: 369.42
Current: 273.44

During the past 9 years, Arax Holdings's highest Altman Z-Score was 369.42. The lowest was -108.27. And the median was 142.15.


Arax Holdings Altman Z-Score Historical Data

The historical data trend for Arax Holdings'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.

Arax Holdings Altman Z-Score Chart

Arax Holdings Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct20 Oct21 Oct22 Oct23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only - - - - 369.42

Arax Holdings Quarterly Data
Apr16 Jul16 Oct16 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 -25.97 69.50 214.79 369.42 316.84

Competitive Comparison of Arax Holdings's Altman Z-Score

For the Software - Infrastructure subindustry, Arax Holdings'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.


Arax Holdings's Altman Z-Score Distribution in the Software Industry

For the Software industry and Technology sector, Arax Holdings's Altman Z-Score distribution charts can be found below:

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



Arax Holdings 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.

Arax Holdings'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*0.0263+1.4*-2.6949+3.3*-2.6045+0.6*380.8619+1.0*0.1265
=216.31

* 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 Jan. 2024:
Total Assets was $7.19 Mil.
Total Current Assets was $0.46 Mil.
Total Current Liabilities was $0.27 Mil.
Retained Earnings was $-19.39 Mil.
Pre-Tax Income was -1.228 + -15.24 + -2.001 + -0.268 = $-18.74 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 0.227 + 0.227 + 0.229 + 0.227 = $0.91 Mil.
Market Cap (Today) was $102.07 Mil.
Total Liabilities was $0.27 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
=(0.457 - 0.268)/7.194
=0.0263

X2=Retained Earnings/Total Assets
=-19.387/7.194
=-2.6949

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-18.737 - 0)/7.194
=-2.6045

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=102.071/0.268
=380.8619

X5=Revenue/Total Assets
=0.91/7.194
=0.1265

The zones of discrimination were as such:

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

Arax Holdings has a Altman Z-Score of 216.31 indicating it is in Safe Zones.

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


Arax Holdings  (OTCPK:ARAT) 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.


Arax Holdings Altman Z-Score Related Terms

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Arax Holdings (Arax Holdings) Business Description

Traded in Other Exchanges
N/A
Address
30 North Gould Street, Sheridan, WY, USA, 82801
Arax Holdings Corp invests in TechFin and blockchain-based software solutions companies. The primary focus of Arax is to fuse decentralized solutions with financial service providers within multiple markets and communication networks to bring blockchain to everyday life.

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