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FTGFF (Firan Technology Group) Altman Z-Score : 4.22 (As of Dec. 13, 2024)


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What is Firan Technology Group 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.

Good Sign:

Altman Z-score of 4.26 is strong.

Firan Technology Group has a Altman Z-Score of 4.22, 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 Firan Technology Group's Altman Z-Score or its related term are showing as below:

FTGFF' s Altman Z-Score Range Over the Past 10 Years
Min: 2.62   Med: 3.54   Max: 4.94
Current: 4.26

During the past 13 years, Firan Technology Group's highest Altman Z-Score was 4.94. The lowest was 2.62. And the median was 3.54.


Firan Technology Group Altman Z-Score Historical Data

The historical data trend for Firan Technology Group'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.

Firan Technology Group Altman Z-Score Chart

Firan Technology Group Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.78 3.08 3.29 2.72 3.20

Firan Technology Group Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 2.72 3.20 3.60 3.53 3.92

Competitive Comparison of Firan Technology Group's Altman Z-Score

For the Aerospace & Defense subindustry, Firan Technology Group'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.


Firan Technology Group's Altman Z-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Firan Technology Group's Altman Z-Score distribution charts can be found below:

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



Firan Technology Group 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.

Firan Technology Group'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*0.3726+1.4*0.2918+3.3*0.12+0.6*2.9009+1.0*1.2253
=4.22

* 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 Aug. 2024:
Total Assets was $93.9 Mil.
Total Current Assets was $57.7 Mil.
Total Current Liabilities was $22.7 Mil.
Retained Earnings was $27.4 Mil.
Pre-Tax Income was 3.127 + 2.734 + 1.342 + 2.488 = $9.7 Mil.
Interest Expense was -0.417 + -0.428 + -0.39 + -0.336 = $-1.6 Mil.
Revenue was 31.555 + 28.382 + 25.907 + 29.176 = $115.0 Mil.
Market Cap (Today) was $127.6 Mil.
Total Liabilities was $44.0 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
=(57.695 - 22.715)/93.87
=0.3726

X2=Retained Earnings/Total Assets
=27.391/93.87
=0.2918

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(9.691 - -1.571)/93.87
=0.12

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=127.633/43.998
=2.9009

X5=Revenue/Total Assets
=115.02/93.87
=1.2253

The zones of discrimination were as such:

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

Firan Technology Group has a Altman Z-Score of 4.22 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.


Firan Technology Group  (OTCPK:FTGFF) 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.


Firan Technology Group Altman Z-Score Related Terms

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Firan Technology Group Business Description

Traded in Other Exchanges
Address
250 Finchdene Square, Toronto, ON, CAN, M1X 1A5
Firan Technology Group Corp is a supplier of aerospace and defense electronic products and subsystems. It has two operating segments namely FTG Circuits and FTG Aerospace. FTG Circuits manufactures printed circuit boards within the marketplace globally. FTG Aerospace designs and manufactures illuminated cockpit panels, keyboards, bezels, sub-assemblies, and assemblies for original equipment manufacturers of avionics products and for airframe manufacturers. The company operates in Canada, the United States, Asia, and Europe. The majority of revenue is derived from the FTG Circuits segment.