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Dril-Quip (NYSE:DRQ) Altman Z-Score

: 5.84 (As of Today)
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Good Sign:

Altman Z-score of 5.84 is strong.

Dril-Quip has a Altman Z-Score of 5.84, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

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 Dril-Quip's Altman Z-Score or its related term are showing as below:

DRQ' s Altman Z-Score Range Over the Past 10 Years
Min: 5.66   Med: 12.44   Max: 20.36
Current: 5.84

During the past 13 years, Dril-Quip's highest Altman Z-Score was 20.36. The lowest was 5.66. And the median was 12.44.


Dril-Quip Altman Z-Score Historical Data

The historical data trend for Dril-Quip'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.

Dril-Quip Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.98 11.23 8.06 5.66 8.29

Dril-Quip Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 6.07 8.29 8.83 7.41 6.68

Competitive Comparison

For the Oil & Gas Equipment & Services subindustry, Dril-Quip'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.


Dril-Quip Altman Z-Score Distribution

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

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



Dril-Quip 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.

Dril-Quip'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*0.5978+1.4*0.9418+3.3*0.0106+0.6*5.6246+1.0*0.3916
=5.84

* 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. 2023:
Total Assets was $1,007.6 Mil.
Total Current Assets was $709.0 Mil.
Total Current Liabilities was $106.7 Mil.
Retained Earnings was $948.9 Mil.
Pre-Tax Income was -3.759 + 5.585 + 5.935 + 2.928 = $10.7 Mil.
Interest Expense was 0 + -0.019 + -0.08 + 0.068 = $-0.0 Mil.
Revenue was 117.244 + 89.607 + 90.865 + 96.814 = $394.5 Mil.
Market Cap (Today) was $771.2 Mil.
Total Liabilities was $137.1 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
=(709.04 - 106.735)/1007.568
=0.5978

X2=Retained Earnings/Total Assets
=948.928/1007.568
=0.9418

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(10.689 - -0.031)/1007.568
=0.0106

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=771.170/137.106
=5.6246

X5=Revenue/Total Assets
=394.53/1007.568
=0.3916

The zones of discrimination were as such:

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

Dril-Quip has a Altman Z-Score of 5.84 indicating it is in Safe Zones.

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


Dril-Quip  (NYSE:DRQ) 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.


Dril-Quip Altman Z-Score Related Terms

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


Dril-Quip (NYSE:DRQ) Business Description

Traded in Other Exchanges
N/A
Address
2050 West Sam Houston Parkway S., Suite 1100, Houston, TX, USA, 77042
Dril-Quip Inc. designs, manufactures, sells and services engineered drilling and production equipment for both offshore and onshore applications. The Company's revenues are generated from three sources, Product revenues are derived from the sale of drilling and production equipment. Service revenues are earned when the Company provides technical advisory assistance and rework and reconditioning services. Leasing revenues are derived from rental tools used during the installation and retrieval of the Company's products. The Company's operations are organized into three geographic segments, Western Hemisphere (including North and South America), Eastern Hemisphere (including Europe and Africa) and Asia-Pacific (including the Pacific Rim, Southeast Asia, Australia, India and the Middle East).
Executives
Carri A. Lockhart director 6401 NORTH ELDRIDGE PKWY, HOUSTON TX 77041
Donald M Underwood officer: VP - Subsea Products 6401 NORTH ELDRIDGE PKWY, HOUSTON TX 77041
Kyle Mcclure officer: Vice President and CFO 10260 WESTHEIMER RD, SUITE 700, HOUSTON TX 77042
Darryl Keith Willis director 2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Blake T. Deberry director, officer: President and CEO 13550 HEMPSTEAD HIGHWAY, HOUSTON TX 77040
John Lovoi director 3505 W SAM HOUSTON PKWY NORTH, SUITE 400, HOUSTON TX 77043
Terence Bartlett Jupp director 6401 N. ELDRIDGE PARKWAY, HOUSTON TX 77041
A P Shukis director C/O CORPORATE STRATEGIES INC, 1170 ST JAMES PLACE SUITE 115, HOUSTON TX 77056
James C. Webster officer: VP - Gen Counsel & Secretary 13550 HEMPSTEAD HIGHWAY, HOUSTON TX 77040
Amy B Schwetz director 701 MARKET STREET, ST. LOUIS MO 63101
Raj Kumar officer: VP-Finance & Chief Acct. Off. 6401 N. ELDRIDGE PARKWAY, HOUSTON TX 77041
Jeffrey J. Bird officer: Vice President and CFO 10260 WESTHEIMER RD., HOUSTON TX 77042
Steven L Newman director 6401 N. ELDRIDGE PARKWAY, HOUSTON TX 77041
James A. Gariepy officer: SR V.P. and COO 13550 HEMPSTEAD HIGHWAY, HOUSTON TX 77040
Robertson L H Dick director 39 LAKESIDE DRIVE, STAR HARBOR, MALAKOFF TX 75148