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Computer Programs and Systems Altman Z-Score

: 2.54 (As of Today)
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Warning Sign:

Altman Z-score of 2.53 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.

Computer Programs and Systems has a Altman Z-Score of 2.54, indicating it is in Grey Zones. This implies that Computer Programs and Systems 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 Computer Programs and Systems's Altman Z-Score or its related term are showing as below:

NAS:CPSI' s Altman Z-Score Range Over the Past 10 Years
Min: 2.08   Med: 21.71   Max: 40.11
Current: 2.53

2.08
40.11

During the past 13 years, Computer Programs and Systems's highest Altman Z-Score was 40.11. The lowest was 2.08. And the median was 21.71.


Computer Programs and Systems Altman Z-Score Historical Data

The historical data trend for Computer Programs and Systems'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.

Computer Programs and Systems Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.08 2.15 2.47 2.70 3.07

Computer Programs and Systems Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 3.07 3.07 3.34 2.70 2.94

Competitive Comparison

For the Health Information Services subindustry, Computer Programs and Systems'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.

   

Computer Programs and Systems Altman Z-Score Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Computer Programs and Systems's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Computer Programs and Systems's Altman Z-Score falls into.



Computer Programs and Systems 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.

Computer Programs and Systems'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*0.0758+1.4*0.0843+3.3*0.0634+0.6*2.3588+1.0*0.706
=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 Sep. 2021:
Total Assets was $387.4 Mil.
Total Current Assets was $71.0 Mil.
Total Current Liabilities was $41.6 Mil.
Retained Earnings was $32.7 Mil.
Pre-Tax Income was 3.829 + 7.165 + 5.101 + 5.496 = $21.6 Mil.
Interest Expense was -0.825 + -0.797 + -0.627 + -0.73 = $-3.0 Mil.
Revenue was 70.091 + 68.533 + 68.005 + 66.849 = $273.5 Mil.
Market Cap (Today) was $404.3 Mil.
Total Liabilities was $171.4 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
=(70.977 - 41.614)/387.382
=0.0758

X2=Retained Earnings/Total Assets
=32.653/387.382
=0.0843

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(21.591 - -2.979)/387.382
=0.0634

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=404.297/171.396
=2.3588

X5=Revenue/Total Assets
=273.478/387.382
=0.706

The zones of discrimination were as such:

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

Computer Programs and Systems 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.


Computer Programs and Systems  (NAS:CPSI) 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.


Computer Programs and Systems Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Computer Programs and Systems's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Computer Programs and Systems Business Description

Computer Programs and Systems logo
Industry
Traded in Other Exchanges
Address
6600 Wall Street, Mobile, AL, USA, 36695
Computer Programs and Systems Inc is a provider of healthcare solutions and services for community hospitals and post-acute care facilities. The company's segment includes Acute Care EHR, Post-acute Care EHR, and TruBridge. Acute Care EHR segment consists of acute care software solutions and support sales generated by Evident and Health and. Post-acute Care EHR segment consists of post-acute care software solutions and support sales generated by AHT, and TruBridge segment primarily consists of business management, consulting and managed IT services sales generated by TruBridge and the sale of Rycan's revenue cycle management workflow and automation software. It generates a majority of its revenue from the Acute Care EHR segment.
Executives
Strong Jeffrey A. director 157 COLUMBUS AVE SUITE 403 NEW YORK CITY NY 10023
Douglas John B Jr director, officer: President and CEO 333 DALEWOOD DR. MOBILE AL 36608
Schneider Victor S officer: Executive Vice President 5 DEMOUY AVE. MOBILE AL 36606
Fowler Christopher L officer: COO and President (TruBridge) 6600 WALL STREET MOBILE AL 36695
Britain James B officer: VP - Finance and Controller 6600 WALL STREET MOBILE AL 36695
Hinckle Robert D officer: Senior VP - Client Services COMPUTER PROGRAMS AND SYSTEMS, INC. 6600 WALL STREET MOBILE AL 36695
Rosser Troy D officer: Senior Vice President - Sales COMPUTER PROGRAMS & SYSTEMS, INC. 6600 WALL STREET MOBILE AL 36695
Chambless Matt J officer: CFO, Secretary & Treasurer 6600 WALL STREET MOBILE AL 36695
Mulherin William A Iii director 228 S. MCGREGOR AVE MOBILE AL 36608
Tobin Glenn director CERNER CORP 2800 ROCKCREEK PARKWAY KANSAS CITY MO 64117
Warren Denise Wilder director 6600 WALL STREET MOBILE AL 36695
Benjamin Regina M. director 51 SAWYER ROAD, SUITE 200 WALTHAM MA 02453
Huffman Charles P director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HUFFMAN CHARLES P a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Hjelm Christopher T director C/O THE KROGER CO. 1014 VINE ST. CINCINNATI OH 45202
Outlaw Arthur Robert Jr director 6600 WALL STREET MOBILE AL 36695

Computer Programs and Systems Headlines

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