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DFLI (Dragonfly Energy Holdings) Altman Z-Score : -0.92 (As of Dec. 11, 2024)


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What is Dragonfly Energy Holdings 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 -0.92 is in distress zone. This implies bankruptcy possibility in the next two years.

Dragonfly Energy Holdings has a Altman Z-Score of -0.92, 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 Dragonfly Energy Holdings's Altman Z-Score or its related term are showing as below:

DFLI' s Altman Z-Score Range Over the Past 10 Years
Min: -0.92   Med: 0.27   Max: 3.66
Current: -0.92

During the past 4 years, Dragonfly Energy Holdings's highest Altman Z-Score was 3.66. The lowest was -0.92. And the median was 0.27.


Dragonfly Energy Holdings Altman Z-Score Historical Data

The historical data trend for Dragonfly Energy Holdings'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.

Dragonfly Energy Holdings Altman Z-Score Chart

Dragonfly Energy Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Altman Z-Score
- - 3.66 0.84

Dragonfly Energy Holdings Quarterly Data
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 0.07 0.84 -0.28 -0.65 -0.85

Competitive Comparison of Dragonfly Energy Holdings's Altman Z-Score

For the Electrical Equipment & Parts subindustry, Dragonfly Energy Holdings'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.


Dragonfly Energy Holdings's Altman Z-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Dragonfly Energy Holdings's Altman Z-Score distribution charts can be found below:

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



Dragonfly Energy Holdings 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.

Dragonfly Energy Holdings'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*-0.1183+1.4*-0.8621+3.3*-0.0977+0.6*0.2833+1.0*0.5826
=-0.92

* 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 $83.88 Mil.
Total Current Assets was $39.34 Mil.
Total Current Liabilities was $49.26 Mil.
Retained Earnings was $-72.31 Mil.
Pre-Tax Income was -6.779 + -13.627 + -10.367 + 3.288 = $-27.49 Mil.
Interest Expense was -5.615 + -4.878 + -4.76 + -4.034 = $-19.29 Mil.
Revenue was 12.72 + 13.208 + 12.505 + 10.438 = $48.87 Mil.
Market Cap (Today) was $23.85 Mil.
Total Liabilities was $84.18 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
=(39.337 - 49.264)/83.881
=-0.1183

X2=Retained Earnings/Total Assets
=-72.312/83.881
=-0.8621

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-27.485 - -19.287)/83.881
=-0.0977

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=23.847/84.178
=0.2833

X5=Revenue/Total Assets
=48.871/83.881
=0.5826

The zones of discrimination were as such:

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

Dragonfly Energy Holdings has a Altman Z-Score of -0.92 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.


Dragonfly Energy Holdings  (NAS:DFLI) 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.


Dragonfly Energy Holdings Altman Z-Score Related Terms

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Dragonfly Energy Holdings Business Description

Traded in Other Exchanges
N/A
Address
1190 Trademark Drive, No. 108, Reno, NV, USA, 89521
Dragonfly Energy Holdings Corp is a manufacturer of non-toxic deep cycle lithium-ion batteries that are designed to displace lead acid batteries in a number of different storage applications and end markets including RV, marine vessel, and solar and off-grid industries, with disruptive solid-state cell technology currently under development. The company's deep cycle lithium iron phosphate ("LFP") batteries provide numerous advantages compared to incumbent products, such as lead-acid batteries. LFP batteries are non-toxic and environmentally friendly, do not rely on scarce or controversial metals, and are a highly cost-effective storage solution.
Executives
Wade Seaburg officer: Chief Revenue Officer C/O DRAGONFLY ENERGY HOLDINGS CORP., 1190 TRADEMARK DRIVE #108, RENO NV 89521
Karina Edmonds director 1190 TRADEMARK DRIVE, #108, RENO NV 89521
Luisa Ingargiola director 4826 BLUE JAY CIRCLE, PALM HARBOR FL 34683
Brian James Nelson director C/O DRAGONFLY ENERGY CORP., 1190 TRADEMARK DR., SUITE 108, RENO NV 89521
Jonathan Bellows director C/O DRAGONFLY ENERGY CORP., 1190 TRADEMARK DR., SUITE 118, RENO NV 89521
Dynavolt Technology (hk) Ltd. 10 percent owner A1601 COMPREHENSIVE BUSINESS BUILDING, MENGSHI INTERNATIONAL PLAZA,GUANGYI ROAD, CHENG HAI, GUANGDONG F4 00000
Tyler Bourns officer: Senior VP of Marketing 1190 TRADEMARK DRIVE, #118, RENO NV 89521
Joan Buell officer: Controller 1190 TRADEMARK DRIVE, #118, RENO NV 89521
Nicole Harvey officer: Gen Counsel,Comp Off,Corp Sec 1190 TRADEMARK DRIVE, #118, RENO NV 89521
Sean Nichols officer: Chief Operating Officer 1190 TRADEMARK DRIVE, #108, RENO NV 89521
Denis Phares director, 10 percent owner, officer: President and CEO 1190 TRADEMARK DRIVE, #108, RENO NV 89521
John Marchetti officer: Chief Financial Officer 3736 FALLON ROAD #428, DUBLIN CA 94568
Rick Parod director 2707 N 108TH STREET STE102, OMAHA NE 68164
Roderick A. Hardamon director 17 STATE STREET, 21ST FLOOR, NEW YORK NY 10004
Hitesh Thakrar director 17 STATE STREET, 21ST FLOOR, NEW YORK NY 10004