GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Coterra Energy Inc (NYSE:CTRA) » Definitions » Altman Z-Score

Coterra Energy (Coterra Energy) Altman Z-Score : 2.48 (As of Jun. 14, 2024)


View and export this data going back to 1990. Start your Free Trial

What is Coterra Energy 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 2.51 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Coterra Energy has a Altman Z-Score of 2.48, indicating it is in Grey Zones. This implies that Coterra Energy 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 Coterra Energy's Altman Z-Score or its related term are showing as below:

CTRA' s Altman Z-Score Range Over the Past 10 Years
Min: 1.8   Med: 3.17   Max: 4.98
Current: 2.51

During the past 13 years, Coterra Energy's highest Altman Z-Score was 4.98. The lowest was 1.80. And the median was 3.17.


Coterra Energy Altman Z-Score Historical Data

The historical data trend for Coterra Energy'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.

Coterra Energy Altman Z-Score Chart

Coterra Energy 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 3.68 2.91 1.80 3.21 2.60

Coterra Energy Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 3.21 3.04 2.84 2.60 2.56

Competitive Comparison of Coterra Energy's Altman Z-Score

For the Oil & Gas E&P subindustry, Coterra Energy'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.


Coterra Energy's Altman Z-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Coterra Energy's Altman Z-Score distribution charts can be found below:

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



Coterra Energy 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.

Coterra Energy'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*0.0401+1.4*0.2653+3.3*0.0852+0.6*2.5254+1.0*0.2658
=2.48

* 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 Mar. 2024:
Total Assets was $20,953 Mil.
Total Current Assets was $2,550 Mil.
Total Current Liabilities was $1,709 Mil.
Retained Earnings was $5,558 Mil.
Pre-Tax Income was 437 + 569 + 417 + 270 = $1,693 Mil.
Interest Expense was -23 + -29 + -20 + -21 = $-93 Mil.
Revenue was 1433 + 1596 + 1356 + 1185 = $5,570 Mil.
Market Cap (Today) was $19,860 Mil.
Total Liabilities was $7,864 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
=(2550 - 1709)/20953
=0.0401

X2=Retained Earnings/Total Assets
=5558/20953
=0.2653

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1693 - -93)/20953
=0.0852

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=19859.858/7864
=2.5254

X5=Revenue/Total Assets
=5570/20953
=0.2658

The zones of discrimination were as such:

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

Coterra Energy has a Altman Z-Score of 2.48 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.


Coterra Energy  (NYSE:CTRA) 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.


Coterra Energy Altman Z-Score Related Terms

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


Coterra Energy (Coterra Energy) Business Description

Traded in Other Exchanges
Address
840 Gessner Road, Suite 1400, Three Memorial City Plaza, Houston, TX, USA, 77024
Coterra is an independent exploration and production company with operations in Appalachia, the Permian Basin, and Oklahoma. It was formed after the 2021 merger with Cabot and Cimarex. At year-end 2022, Coterra's proved reserves were 2.4 billion barrels of oil equivalent, with net production that year of approximately 633 million barrels of oil equivalent per day (of which 74% was natural gas).
Executives
Thomas E Jorden director, officer: CEO and President C/O CIIRMAREX ENERGY CO, 707 17TH ST. #3300, DENVER CO 80202-3404
Dan O Dinges director PO BOX 4544, PO BOX 4544, HOUSTON TX 77210-4544
Andrea Alexander officer: SVP & Chief HR Officer C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Young, Iii Shannon E. officer: EVP & Chief Financial Officer COBALT CENTER, 920 MEMORIAL CITY WAY, SUITE 100, HOUSTON TX 77024
Michael D. Deshazer officer: VP - Business Units THREE MEMORIAL CITY PLAZA, 840 GESSNER ROAD, SUITE 1400, HOUSTON TX 77024
Scott C Schroeder officer: Executive Vice President & CFO CABOT OIL & GAS CORPORATION, PO BOX 4544, HOUSTON TX 77210-4544
Hans Helmerich director C/O CIIRMAREX ENERGY CO, 707 17TH ST. #3300, DENVER CO 80202-3404
Adam M Vela officer: VP & General Counsel 840 GESSNER ROAD, SUITE 1400, HOUSTON TX 77024
Blake A Sirgo officer: SVP - Operations 1700 LINCOLN STREET, SUITE 3700, DENVER CO 80203
Stephen P Bell officer: Ex VP C/O CIIRMAREX ENERGY CO, 707 17TH ST. #3300, DENVER CO 80202-3404
Steven W Lindeman officer: Sr. Vice Pres, South Reg & Eng 840 GESSNER ROAD, SUITE 1400, HOUSTON TX 77024
Francis Brian Barron officer: Sr VP - General Counsel 1099 18TH STREET, SUITE 2300, DENVER CO 80202
Gary J. Hlavinka officer: Vice President, (MBU) 840 GESSNER ROAD, SUITE 1400, HOUSTON TX 77024
Christopher Clason officer: SVP and Chief HR Officer 1700 LINCOLN STREET, SUITE 3700, DENVER CO 80203
Todd M Roemer officer: Controller 840 GESSNER ROAD, SUITE 1400, HOUSTON TX 77024