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Substrate Artificial Inteligence (FRA:U8S) Altman Z-Score : -0.06 (As of Dec. 14, 2024)


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What is Substrate Artificial Inteligence 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 -0.06 is in distress zone. This implies bankruptcy possibility in the next two years.

Substrate Artificial Inteligence has a Altman Z-Score of -0.06, 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 Substrate Artificial Inteligence's Altman Z-Score or its related term are showing as below:

FRA:U8S' s Altman Z-Score Range Over the Past 10 Years
Min: -2.22   Med: -1.03   Max: 0.16
Current: -0.06

During the past 3 years, Substrate Artificial Inteligence's highest Altman Z-Score was 0.16. The lowest was -2.22. And the median was -1.03.


Substrate Artificial Inteligence Altman Z-Score Historical Data

The historical data trend for Substrate Artificial Inteligence'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.

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Substrate Artificial Inteligence Altman Z-Score Chart

Substrate Artificial Inteligence Annual Data
Trend Dec21 Dec22 Dec23
Altman Z-Score
- -2.22 0.16

Substrate Artificial Inteligence Semi-Annual Data
Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Altman Z-Score Get a 7-Day Free Trial - - -2.22 - 0.16

Competitive Comparison of Substrate Artificial Inteligence's Altman Z-Score

For the Software - Infrastructure subindustry, Substrate Artificial Inteligence'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.


Substrate Artificial Inteligence's Altman Z-Score Distribution in the Software Industry

For the Software industry and Technology sector, Substrate Artificial Inteligence's Altman Z-Score distribution charts can be found below:

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



Substrate Artificial Inteligence 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.

Substrate Artificial Inteligence'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*-0.0652+1.4*-0.5668+3.3*-0.1665+0.6*1.9469+1.0*0.1936
=-0.06

* 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 €44.46 Mil.
Total Current Assets was €10.07 Mil.
Total Current Liabilities was €12.97 Mil.
Retained Earnings was €-25.20 Mil.
Pre-Tax Income was €-8.21 Mil.
Interest Expense was €-0.81 Mil.
Revenue was €8.61 Mil.
Market Cap (Today) was €40.11 Mil.
Total Liabilities was €20.60 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
=(10.067 - 12.966)/44.46
=-0.0652

X2=Retained Earnings/Total Assets
=-25.201/44.46
=-0.5668

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-8.209 - -0.806)/44.46
=-0.1665

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=40.105/20.599
=1.9469

X5=Revenue/Total Assets
=8.609/44.46
=0.1936

The zones of discrimination were as such:

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

Substrate Artificial Inteligence has a Altman Z-Score of -0.06 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.


Substrate Artificial Inteligence  (FRA:U8S) 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.


Substrate Artificial Inteligence Altman Z-Score Related Terms

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Substrate Artificial Inteligence Business Description

Traded in Other Exchanges
Address
C/ Maria de Molina, 41, Office 506, Madrid, ESP, 28006
Substrate Artificial Inteligence SA is an Artificial Intelligence company in Spain. Its software is applied in agritech, energy, industry, fintech, human resources, or health sectors. Its technology is easy to implement and allows it to address all the problems faced by companies in the digitization and streamlining of their processes, optimizing decision-making and generating great cost savings.

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