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Forrester Research (Forrester Research) Altman Z-Score : 1.87 (As of Jun. 24, 2024)


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What is Forrester Research 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 1.85 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.

Forrester Research has a Altman Z-Score of 1.87, indicating it is in Grey Zones. This implies that Forrester Research 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 Forrester Research's Altman Z-Score or its related term are showing as below:

FORR' s Altman Z-Score Range Over the Past 10 Years
Min: 1.6   Med: 2.67   Max: 4.73
Current: 1.85

During the past 13 years, Forrester Research's highest Altman Z-Score was 4.73. The lowest was 1.60. And the median was 2.67.


Forrester Research Altman Z-Score Historical Data

The historical data trend for Forrester Research'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.

Forrester Research Altman Z-Score Chart

Forrester Research 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 1.80 2.01 2.56 2.46 2.25

Forrester Research 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 2.33 2.31 2.47 2.25 2.02

Competitive Comparison of Forrester Research's Altman Z-Score

For the Consulting Services subindustry, Forrester Research'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.


Forrester Research's Altman Z-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Forrester Research's Altman Z-Score distribution charts can be found below:

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



Forrester Research 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.

Forrester Research'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*-0.0405+1.4*0.3078+3.3*0.0106+0.6*1.0152+1.0*0.8408
=1.87

* 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 $555.7 Mil.
Total Current Assets was $218.6 Mil.
Total Current Liabilities was $241.1 Mil.
Retained Earnings was $171.0 Mil.
Pre-Tax Income was -8.78 + -1.265 + 4.861 + 8.072 = $2.9 Mil.
Interest Expense was -0.762 + -0.774 + -0.763 + -0.73 = $-3.0 Mil.
Revenue was 100.077 + 118.089 + 113.431 + 135.589 = $467.2 Mil.
Market Cap (Today) was $329.7 Mil.
Total Liabilities was $324.7 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
=(218.581 - 241.111)/555.67
=-0.0405

X2=Retained Earnings/Total Assets
=171.008/555.67
=0.3078

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2.888 - -3.029)/555.67
=0.0106

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=329.690/324.739
=1.0152

X5=Revenue/Total Assets
=467.186/555.67
=0.8408

The zones of discrimination were as such:

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

Forrester Research has a Altman Z-Score of 1.87 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.


Forrester Research  (NAS:FORR) 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.


Forrester Research Altman Z-Score Related Terms

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Forrester Research (Forrester Research) Business Description

Traded in Other Exchanges
N/A
Address
60 Acorn Park Drive, Cambridge, MA, USA, 02140
Forrester Research Inc is a United States-based company that provides independent research, data, and advisory services. It operates through the following segments: The Research segment develops and delivers research, connect, and analytics products; The consulting segment includes the revenues and the related costs of the company's consulting organization, and the Events segment is engaged in developing and hosting in-person and virtual events.
Executives
Steven P. Peltzman officer: CBTO C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Scott Chouinard officer: Chief Accounting Officer C/O FORRESTER RESEARCH, INC., 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Carrie Johnson officer: Chief Research Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Ryan Darrah officer: Chief Legal Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Anthony J Friscia director C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Robert Galford director C/O FORRESTER RESEARCH, 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Alicia Lee officer: Chief Consulting Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Kelley Hippler officer: Chief Sales Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DR., CAMBRIDGE MA 02140
David Boyce director C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Roy Sarah Le officer: Chief People Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Warren N Romine director 7325 16TH STREET NW, WASHINGTON DC 20012
Sharyn Leaver officer: Chief Research Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Nathaniel Swan officer: Chief Sales Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
George F Colony director, 10 percent owner, officer: Chairman & CEO C/O FORRESTER RESEARCH INC, 1033 MASSACHUSETTS AVE, CAMBRIDGE MA 02138
Gretchen Teichgraeber director C/O FORRESTER RESEARCH, 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139