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ASST (Asset Entities) Altman Z-Score : -5.77 (As of Dec. 13, 2024)


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What is Asset Entities 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 -3.67 is in distress zone. This implies bankruptcy possibility in the next two years.

Asset Entities has a Altman Z-Score of -5.77, 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 Asset Entities's Altman Z-Score or its related term are showing as below:

ASST' s Altman Z-Score Range Over the Past 10 Years
Min: -3.67   Med: 27.05   Max: 78
Current: -3.67

During the past 4 years, Asset Entities's highest Altman Z-Score was 78.00. The lowest was -3.67. And the median was 27.05.


Asset Entities Altman Z-Score Historical Data

The historical data trend for Asset Entities'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.

Asset Entities Altman Z-Score Chart

Asset Entities Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Altman Z-Score
- - - 28.66

Asset Entities Quarterly Data
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 27.05 28.66 10.38 -1.83 -2.88

Competitive Comparison of Asset Entities's Altman Z-Score

For the Internet Content & Information subindustry, Asset Entities'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.


Asset Entities's Altman Z-Score Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Asset Entities's Altman Z-Score distribution charts can be found below:

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



Asset Entities 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.

Asset Entities'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*0.7528+1.4*-3.915+3.3*-2.2628+0.6*10.1376+1.0*0.1966
=-5.77

* 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 $2.55 Mil.
Total Current Assets was $2.22 Mil.
Total Current Liabilities was $0.30 Mil.
Retained Earnings was $-10.00 Mil.
Pre-Tax Income was -1.315 + -1.727 + -1.387 + -1.348 = $-5.78 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 0.203 + 0.093 + 0.125 + 0.081 = $0.50 Mil.
Market Cap (Today) was $3.02 Mil.
Total Liabilities was $0.30 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
=(2.22 - 0.298)/2.553
=0.7528

X2=Retained Earnings/Total Assets
=-9.995/2.553
=-3.915

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-5.777 - 0)/2.553
=-2.2628

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=3.021/0.298
=10.1376

X5=Revenue/Total Assets
=0.502/2.553
=0.1966

The zones of discrimination were as such:

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

Asset Entities has a Altman Z-Score of -5.77 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.


Asset Entities  (NAS:ASST) 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.


Asset Entities Altman Z-Score Related Terms

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Asset Entities Business Description

Traded in Other Exchanges
N/A
Address
100 Crescent Court, 7th Floor, Dallas, TX, USA, 75201
Asset Entities Inc is an Internet company providing social media marketing, content delivery, and development and design services across Discord, TikTok, and other social media platforms. It has three categories of services: 1) provide subscription upgrades to premium content on investment education and entertainment servers on Discord. 2) codevelop and execute influencer social media and marketing campaigns for clients. 3) design, develop and manage Discord servers for clients under "AE.360.DDM" brand.
Executives
Arshia Sarkhani director, 10 percent owner, officer: CEO and President 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Jackson Fairbanks 10 percent owner, officer: Chief Marketing Officer 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Arman Sarkhani 10 percent owner, officer: Chief Operating Officer 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Kyle Fairbanks director, 10 percent owner, officer: Executive Vice-Chairman 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Matthew Krueger 10 percent owner, officer: CFO, Treasurer and Secretary 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Michael Gaubert director, 10 percent owner, officer: Executive Chairman 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Asset Entities Holdings, Llc 10 percent owner 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
James Sheldon Fairbanks 10 percent owner 3612 SUNSET VIEW DRIVE, FORTUNA CA 95540
Kavous Sarkhani 10 percent owner 13470 BLACK HILLS ROAD, SAN DIEGO CA 92129
Elham Nejad 10 percent owner 13470 BLACK HILLS ROAD, SAN DIEGO CA 92129
Jennifer Joan Fairbanks 10 percent owner 3612 SUNSET VIEW DRIVE, FORTUNA CA 95540
Richard Alfred Burton director 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Scott Kelley Mcdonald director 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Kd Holdings Group, Llc 10 percent owner 4313 OAK KNOLL DRIVE, PLANO TX 75093
Richard Benavides 10 percent owner 5934 WALNUT HILL ROAD, DALLAS TX 75230