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Academy Sports and Outdoors (NAS:ASO) Altman Z-Score

: 3.49 (As of Today)
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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 3.49 is strong.

Academy Sports and Outdoors has a Altman Z-Score of 3.49, 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 Academy Sports and Outdoors's Altman Z-Score or its related term are showing as below:

ASO' s Altman Z-Score Range Over the Past 10 Years
Min: 2.36   Med: 3.42   Max: 3.55
Current: 3.49

During the past 7 years, Academy Sports and Outdoors's highest Altman Z-Score was 3.55. The lowest was 2.36. And the median was 3.42.


Academy Sports and Outdoors Altman Z-Score Historical Data

The historical data trend for Academy Sports and Outdoors'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.

Academy Sports and Outdoors Annual Data
Trend Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Altman Z-Score
Premium Member Only Premium Member Only - 2.36 3.32 3.52 3.55

Academy Sports and Outdoors Quarterly Data
Jan19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Altman Z-Score 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 Premium Member Only Premium Member Only Premium Member Only 3.52 3.52 3.40 2.97 3.55

Competitive Comparison

For the Specialty Retail subindustry, Academy Sports and Outdoors'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.


Academy Sports and Outdoors Altman Z-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Academy Sports and Outdoors's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Academy Sports and Outdoors's Altman Z-Score falls into.



Academy Sports and Outdoors 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.

Academy Sports and Outdoors'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*0.1636+1.4*0.366+3.3*0.1516+0.6*1.6133+1.0*1.317
=3.49

* 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 $4,677 Mil.
Total Current Assets was $1,645 Mil.
Total Current Liabilities was $880 Mil.
Retained Earnings was $1,712 Mil.
Pre-Tax Income was 211.257 + 129.947 + 203.273 + 118.679 = $663 Mil.
Interest Expense was -12.578 + -10.93 + -11.313 + -11.23 = $-46 Mil.
Revenue was 1794.828 + 1397.777 + 1583.077 + 1383.609 = $6,159 Mil.
Market Cap (Today) was $4,391 Mil.
Total Liabilities was $2,722 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
=(1644.9 - 879.858)/4676.713
=0.1636

X2=Retained Earnings/Total Assets
=1711.809/4676.713
=0.366

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(663.156 - -46.051)/4676.713
=0.1516

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=4391.404/2722.063
=1.6133

X5=Revenue/Total Assets
=6159.291/4676.713
=1.317

The zones of discrimination were as such:

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

Academy Sports and Outdoors has a Altman Z-Score of 3.49 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.


Academy Sports and Outdoors  (NAS:ASO) 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.


Academy Sports and Outdoors Altman Z-Score Related Terms

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Academy Sports and Outdoors (NAS:ASO) Business Description

Traded in Other Exchanges
N/A
Address
1800 North Mason Road, Katy, TX, USA, 77449
Academy Sports and Outdoors Inc is engaged in the retail business of sporting goods and outdoor recreation products. The company offers outdoor clothing, backpacks, sunglasses, luggage items, shooting equipment, fishing equipment, boating and water sports equipment, backyard recreation products, outdoor cooking equipment, fitness equipment, electronic items, dog supplies, and other products.
Executives
Jeffrey C. Tweedy director C/O ACADEMY SPORTS AND OUTDOORS, INC., 1800 NORTH MASON ROAD, KATY TX 77449
Samuel J Johnson officer: EVP, Retail Operations 4151 E 96TH STREET, INDIANAPOLIS IN 46240
Heather A. Davis officer: VP, Controller C/O ACADEMY SPORTS AND OUTDOORS, INC., 1800 NORTH MASON ROAD, KATY TX 77449
Ford Earl Carlton Iv officer: EVP & CFO C/O ACADEMY SPORTS AND OUTDOORS, INC., 1800 N MASON ROAD, KATY TX 77449
Matthew M. Mccabe officer: EVP & CMO C/O ACADEMY SPORTS AND OUTDOORS, INC., 1800 N MASON ROAD, KATY TX 77449
Michael P. Mullican officer: EVP & CFO C/O ACADEMY SPORTS AND OUTDOORS, INC., 1800 NORTH MASON ROAD, KATY TX 77449
Sherry L. Harriman officer: SVP, Logistics & Supply Chain C/O ACADEMY SPORTS AND OUTDOORS, INC., 1800 N MASON ROAD, KATY TX 77449
Manish Maini officer: SVP, Chief Information Officer C/O ACADEMY SPORTS AND OUTDOORS, INC., 1800 NORTH MASON ROAD, KATY TX 77449
Jamey Traywick Rutherford officer: SVP, Omnichannel C/O ACADEMY SPORTS AND OUTDOORS, INC., 1800 NORTH MASON ROAD, KATY TX 77449
William S. Ennis officer: See Remarks C/O ACADEMY SPORTS AND OUTDOORS, INC., 1800 NORTH MASON ROAD, KATY TX 77449
Rene G. Casares officer: SVP, General Counsel C/O ACADEMY SPORTS AND OUTDOORS, INC., 1800 NORTH MASON ROAD, KATY TX 77449
Theresa Palermo director 1800 N MASON RD, KATY TX 77449
Beryl Raff director 5555 DARROW RD, HUDSON OH 44236
Ken C Hicks director, officer: Chairman, President and CEO 150 N. ORANGE GROVE BLVD, PASADENA CA 91103
Brian T Marley director