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Envela (Envela) Altman Z-Score

: 6.31 (As of Today)
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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.

Good Sign:

Altman Z-score of 6.31 is strong.

Envela has a Altman Z-Score of 6.31, 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 Envela's Altman Z-Score or its related term are showing as below:

ELA' s Altman Z-Score Range Over the Past 10 Years
Min: 1.05   Med: 4.41   Max: 6.97
Current: 6.31

During the past 13 years, Envela's highest Altman Z-Score was 6.97. The lowest was 1.05. And the median was 4.41.


Envela Altman Z-Score Historical Data

The historical data trend for Envela'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.

Envela Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.90 6.76 5.26 6.97 6.69

Envela Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 6.97 7.74 8.51 6.71 6.69

Competitive Comparison

For the Luxury Goods subindustry, Envela'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.


Envela Altman Z-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Envela's Altman Z-Score distribution charts can be found below:

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



Envela 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.

Envela'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*0.5567+1.4*0.1364+3.3*0.1291+0.6*4.4816+1.0*2.3365
=6.31

* 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 Dec. 2023:
Total Assets was $73.5 Mil.
Total Current Assets was $49.9 Mil.
Total Current Liabilities was $9.0 Mil.
Retained Earnings was $10.0 Mil.
Pre-Tax Income was 1.65 + 2.025 + 2.102 + 3.244 = $9.0 Mil.
Interest Expense was -0.114 + -0.117 + -0.115 + -0.117 = $-0.5 Mil.
Revenue was 36.715 + 36.266 + 50.304 + 48.389 = $171.7 Mil.
Market Cap (Today) was $112.8 Mil.
Total Liabilities was $25.2 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
=(49.898 - 8.994)/73.474
=0.5567

X2=Retained Earnings/Total Assets
=10.022/73.474
=0.1364

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(9.021 - -0.463)/73.474
=0.1291

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=112.780/25.165
=4.4816

X5=Revenue/Total Assets
=171.674/73.474
=2.3365

The zones of discrimination were as such:

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

Envela has a Altman Z-Score of 6.31 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.


Envela  (AMEX:ELA) 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.


Envela Altman Z-Score Related Terms

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


Envela (Envela) Business Description

Traded in Other Exchanges
N/A
Address
1901 Gateway Drive, Suite 100, Irving, TX, USA, 75038
Envela Corp and its subsidiaries engage in diverse business activities within the recommerce sector. These include recommercializing luxury hard assets, consumer electronics and IT equipment; and end-of-life recycling solutions. It operates through two re-commerce business segments represented by its two direct subsidiaries. DGSE, LLC primarily buys to resell or recycle luxury hard assets like jewelry, diamonds, gemstones, fine watches, rare coins and related collectibles, precious-metal bullion products, gold, silver and other precious metals, and ECHG, LLC focuses on the recommercialization of business IT equipment and consumer electronic devices.
Executives
Allison M Destefano director 5353 KELLER SPRINGS, #2221, DALLAS TX 75248
Bret Allen Pedersen officer: CHIEF FINANCIAL OFFICER 13022 PRESTON RD, DALLAS TX 75240
Richard D Schepp director C/O KOHLS LEGAL, N56 W170000 RIDGEWOOD DR, MENOMONEE FALLS WI 53051
James R Ruth director 1337 EAGLE BEND DRIVE, SOUTHLAKE TX 76092
Alexandra C Griffin director 2500 MCKINNEY AVE., #839, DALLAS TX 75201
Joel S Friedman director 11527 ASHLEY LANE, FRISCO TX 75035
Eduro Holdings, Llc 10 percent owner 38660 SUSSEX HWY., BLDG 10, #102, DELMAR DE 19940-3529
John Richardson Loftus director, 10 percent owner, officer: Chairman, President & CEO 13022 PRESTON RD, DALLAS TX 75240
Truscott Capital, Llc 10 percent owner 40 E. MAIN STREET, SUITE 626, NEWARK DE 19711
Ntr Metals, Llc 10 percent owner 10720 COMPOSITE DRIVE, DALLAS TX 75220
Elemetal, Llc 10 percent owner 15850 DALLAS PARKWAY, DALLAS TX 75248
Stephen Raymond Patterson officer: Acting Chief Financial Officer 15850 DALLAS PARKWAY, SUITE 140, DALLAS TX 75248
William E Leroy director 15850 DALLAS PARKWAY, SUITE 140, DALLAS TX 75248
Michael J. Noel director 724 LEXINGTON AVE, COPPELL TX 75019
Nabil J. Lopez director, officer: Chief Financial Officer 15850 DALLAS PARKWAY, SUITE 140, DALLAS TX 75248