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ASPS (Altisource Portfolio Solutions) Altman Z-Score : -3.02 (As of Dec. 11, 2024)


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What is Altisource Portfolio Solutions 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 -3.02 is in distress zone. This implies bankruptcy possibility in the next two years.

Altisource Portfolio Solutions has a Altman Z-Score of -3.02, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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 Altisource Portfolio Solutions's Altman Z-Score or its related term are showing as below:

ASPS' s Altman Z-Score Range Over the Past 10 Years
Min: -3.02   Med: 3.02   Max: 3.62
Current: -3.02

During the past 13 years, Altisource Portfolio Solutions's highest Altman Z-Score was 3.62. The lowest was -3.02. And the median was 3.02.


Altisource Portfolio Solutions Altman Z-Score Historical Data

The historical data trend for Altisource Portfolio Solutions'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.

Altisource Portfolio Solutions Altman Z-Score Chart

Altisource Portfolio Solutions Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.62 2.36 2.80 1.70 -0.68

Altisource Portfolio Solutions Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -0.47 -0.68 -1.06 -2.84 -3.00

Competitive Comparison of Altisource Portfolio Solutions's Altman Z-Score

For the Real Estate Services subindustry, Altisource Portfolio Solutions'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.


Altisource Portfolio Solutions's Altman Z-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Altisource Portfolio Solutions's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Altisource Portfolio Solutions's Altman Z-Score falls into.



Altisource Portfolio Solutions 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.

Altisource Portfolio Solutions'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*-1.4848+1.4*-1.7131+3.3*0.0165+0.6*0.0667+1.0*1.0607
=-3.02

* 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 Sep. 2024:
Total Assets was $144.5 Mil.
Total Current Assets was $50.8 Mil.
Total Current Liabilities was $265.4 Mil.
Retained Earnings was $-247.5 Mil.
Pre-Tax Income was -8.493 + -7.566 + -8.435 + -11.95 = $-36.4 Mil.
Interest Expense was -9.96 + -9.788 + -9.529 + -9.549 = $-38.8 Mil.
Revenue was 40.531 + 39.121 + 39.469 + 34.157 = $153.3 Mil.
Market Cap (Today) was $19.6 Mil.
Total Liabilities was $293.2 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
=(50.824 - 265.379)/144.503
=-1.4848

X2=Retained Earnings/Total Assets
=-247.545/144.503
=-1.7131

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-36.444 - -38.826)/144.503
=0.0165

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=19.568/293.189
=0.0667

X5=Revenue/Total Assets
=153.278/144.503
=1.0607

The zones of discrimination were as such:

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

Altisource Portfolio Solutions has a Altman Z-Score of -3.02 indicating it is in Distress Zones.

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


Altisource Portfolio Solutions  (NAS:ASPS) 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.


Altisource Portfolio Solutions Altman Z-Score Related Terms

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Altisource Portfolio Solutions Business Description

Traded in Other Exchanges
N/A
Address
33, Boulevard Prince Henri, Luxembourg, LUX, L-1724
Altisource Portfolio Solutions SA is an integrated service provider and marketplace for the real estate and mortgage industries. It operates via two reportable segments namely Servicer and Real Estate and Origination. The Servicer and Real Estate segment provides loan servicers and real estate investors with solutions and technologies that span the mortgage and real estate lifecycle. The Origination segment provides originators with solutions and technologies that span the mortgage origination lifecycle. Altisource primarily serves financial institutions, government-sponsored enterprises, and originators in the United States, with the majority of revenue flowing from field services and mortgage and real estate solutions.
Executives
William B Shepro director, officer: Chief Executive Officer C/O ALTISOURCE PORTFOLIO SOLUTIONS S.A., 33, BOULEVARD PRINCE HENRI, LUXEMBOURG N4 L-1724
Aldridge John G Jr director C/O ALTISOURCE PORTFOLIO SOLUTIONS S.A., 33, BOULEVARD PRINCE HENRI, LUXEMBOURG CITY N4 L-1724
Michelle D. Esterman officer: Chief Financial Officer C/O ALTISOURCE PORTFOLIO SOLUTIONS S.A., 33, BOULEVARD PRINCE HENRI, LUXEMBOURG N4 L-1724
Deer Park Road Management Company, Lp 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487
Mary Hickok director 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487
Roland Mueller-ineichen director GAALIMATT 35, RAIN V8 CH-6026
Gregory J. Ritts officer: General Counsel C/O ALTISOURCE PORTFOLIO SOLUTIONS S.A., 33, BOULEVARD PRINCE HENRI, LUXEMBOURG N4 L-1724
W Michael Linn director 40, AVENUE MONTEREY, LUXEMBOURG N4 L-2163
Marcello Mastioni officer: PRES, REAL ESTATE MARKETPLACE 40, AVENUE MONTEREY, LUXEMBOURG CITY N4 L-2163
Scott Edward Burg 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487
Agatecreek Llc 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487
Indroneel Chatterjee officer: Chief Financial Officer 40, AVENUE MONTEREY, LUXEMBOURG CITY N4 L-2163
Orin S Kramer director 2050 CENTER AVE, SUITE 300, FORT LEE NJ 07024
Joseph L Morettini director 1375 PORTMARNOCK DRIVE, ALPHARETTA GA 30005
Deer Park Road Management Gp, Llc 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487