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HCP (HashiCorp) Altman Z-Score : 9.61 (As of Dec. 14, 2024)


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What is HashiCorp 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 9.62 is strong.

HashiCorp has a Altman Z-Score of 9.61, 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 HashiCorp's Altman Z-Score or its related term are showing as below:

HCP' s Altman Z-Score Range Over the Past 10 Years
Min: 5.41   Med: 9.07   Max: 21.33
Current: 9.62

During the past 5 years, HashiCorp's highest Altman Z-Score was 21.33. The lowest was 5.41. And the median was 9.07.


HashiCorp Altman Z-Score Historical Data

The historical data trend for HashiCorp'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.

HashiCorp Altman Z-Score Chart

HashiCorp Annual Data
Trend Jan20 Jan21 Jan22 Jan23 Jan24
Altman Z-Score
- - 21.33 8.57 5.41

HashiCorp Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
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 5.77 5.41 8.88 9.25 9.62

Competitive Comparison of HashiCorp's Altman Z-Score

For the Software - Infrastructure subindustry, HashiCorp'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.


HashiCorp's Altman Z-Score Distribution in the Software Industry

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

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



HashiCorp 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.

HashiCorp'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*0.675+1.4*-0.6271+3.3*-0.0707+0.6*15.8672+1.0*0.3868
=9.61

* 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 Oct. 2024:
Total Assets was $1,692.9 Mil.
Total Current Assets was $1,552.8 Mil.
Total Current Liabilities was $410.1 Mil.
Retained Earnings was $-1,061.7 Mil.
Pre-Tax Income was -12.395 + -25.811 + -50.467 + -31.063 = $-119.7 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.0 Mil.
Revenue was 173.389 + 165.138 + 160.579 + 155.783 = $654.9 Mil.
Market Cap (Today) was $6,906.2 Mil.
Total Liabilities was $435.3 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
=(1552.826 - 410.119)/1692.917
=0.675

X2=Retained Earnings/Total Assets
=-1061.664/1692.917
=-0.6271

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-119.736 - 0)/1692.917
=-0.0707

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=6906.232/435.252
=15.8672

X5=Revenue/Total Assets
=654.889/1692.917
=0.3868

The zones of discrimination were as such:

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

HashiCorp has a Altman Z-Score of 9.61 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.


HashiCorp  (NAS:HCP) 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.


HashiCorp Altman Z-Score Related Terms

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HashiCorp Business Description

Traded in Other Exchanges
N/A
Address
101 Second Street, Suite 700, San Francisco, CA, USA, 94105
HashiCorp Inc is engaged in solving the infrastructure challenges of cloud adoption by enabling an operating model that unlocks the full potential of modern public and private clouds. Its cloud operating model provides consistent workflows and a standardized approach to automate the processes involved in delivering applications in the cloud: infrastructure provisioning, security, networking, and application deployment. Its main commercial products are Terraform, Vault, Consul, and Nomad.
Executives
Armon Dadgar director, 10 percent owner, officer: Chief Technology Officer C/O HASHICORP INC., 101 SECOND STREET, SUITE 700, SAN FRANCISCO CA 94105
Marc Holmes officer: Chief Marketing Officer C/O HASHICORP, INC., 101 SECOND STREET, SUITE 700, SAN FRANCISCO CA 94105
Ledger Susan St. director C/O OKTA, INC., 100 FIRST STREET, SUITE 600, SAN FRANCISCO CA 94105
David Mcjannet director, officer: CEO & Chairman C/O HASHICORP, INC., 101 SECOND STREET, SUITE 700, SAN FRANCISCO CA 94105
Navam Welihinda officer: Chief Financial Officer C/O HASHICORP INC., 101 SECOND STREET, SUITE 700, SAN FRANCISCO CA 94105
Sigal Zarmi director 1501 YAMATO ROAD, BOCA RATON FL 33431
Brandon Sweeney officer: Chief Revenue Officer C/O HASHICORP, INC., 101 SECOND STREET, SUITE 700, SAN FRANCISCO CA 94105
David J Henshall director 18880 HOMESTEAD ROAD, CUPERTINO CA 95014
Mayfield Xiv, A Cayman Islands Exempted Limited Partnership 10 percent owner 2484 SAND HILL ROAD, MENLO PARK CA 94025
Glenn Solomon director, 10 percent owner C/O GGV CAPITAL, 3000 SAND HILL ROAD, SUITE 4-230, MENLO PARK CA 94025
Ggv Capital Select L.l.c. 10 percent owner 3000 SAND HILL ROAD, SUITE 4-230, MENLO PARK CA 94025
Ggv Capital V L.l.c. 10 percent owner 3000 SAND HILL ROAD, BUILDING 4, SUITE 230, MENLO PARK CA 94025
Mayfield Select Management (egp), L.p. 10 percent owner 2484 SAND HILL ROAD, MENLO PARK CA 94025
Mf Leaders H-e, L.p. 10 percent owner 2484 SAND HILL ROAD, MENLO PARK CA 94025
Mf Leaders Management, L.l.c. 10 percent owner C/O MAYFIELD, 2484 SAND HILL ROAD, MENLO PARK CA 94025