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HCSG (Healthcare Services Group) Altman Z-Score : 5.11 (As of Dec. 15, 2024)


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What is Healthcare Services 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 5.11 is strong.

Healthcare Services Group has a Altman Z-Score of 5.11, 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 Healthcare Services Group's Altman Z-Score or its related term are showing as below:

HCSG' s Altman Z-Score Range Over the Past 10 Years
Min: 4.6   Med: 8.11   Max: 13.77
Current: 5.11

During the past 13 years, Healthcare Services Group's highest Altman Z-Score was 13.77. The lowest was 4.60. And the median was 8.11.


Healthcare Services Group Altman Z-Score Historical Data

The historical data trend for Healthcare Services 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.

Healthcare Services Group Altman Z-Score Chart

Healthcare Services Group 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 8.07 7.90 5.70 5.14 4.60

Healthcare Services Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 4.80 4.60 4.94 4.64 4.92

Competitive Comparison of Healthcare Services Group's Altman Z-Score

For the Medical Care Facilities subindustry, Healthcare Services 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.


Healthcare Services Group's Altman Z-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Healthcare Services Group's Altman Z-Score distribution charts can be found below:

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



Healthcare Services 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.

Healthcare Services 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*0.4727+1.4*0.2639+3.3*0.0965+0.6*2.8984+1.0*2.1117
=5.11

* 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 Sep. 2024:
Total Assets was $806 Mil.
Total Current Assets was $578 Mil.
Total Current Liabilities was $197 Mil.
Retained Earnings was $213 Mil.
Pre-Tax Income was 18.808 + -1.986 + 21.314 + 32.3 = $70 Mil.
Interest Expense was -1.548 + -1.716 + -1.996 + -2.058 = $-7 Mil.
Revenue was 428.149 + 426.288 + 423.433 + 423.84 = $1,702 Mil.
Market Cap (Today) was $919 Mil.
Total Liabilities was $317 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
=(578.118 - 197.204)/805.841
=0.4727

X2=Retained Earnings/Total Assets
=212.631/805.841
=0.2639

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(70.436 - -7.318)/805.841
=0.0965

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=919.070/317.093
=2.8984

X5=Revenue/Total Assets
=1701.71/805.841
=2.1117

The zones of discrimination were as such:

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

Healthcare Services Group has a Altman Z-Score of 5.11 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.


Healthcare Services Group  (NAS:HCSG) 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.


Healthcare Services Group Altman Z-Score Related Terms

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Healthcare Services Group Business Description

Traded in Other Exchanges
N/A
Address
3220 Tillman Drive, Suite 300, Bensalem, PA, USA, 19020
Healthcare Services Group Inc is a provider of housekeeping and facility management services to the healthcare industry. The company operates two business segments, both contributing roughly equally to the company's revenue: Housekeeping, laundry, linen, and other services; and Dietary department services. Housekeeping includes management of clients' housekeeping departments, cleaning, disinfecting and sanitizing, laundry, bed linen, and uniform services. Dietary consists of food purchasing, meal preparation, and providing dietitian consulting services. Its clients are nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States of America.
Executives
Andrew M Brophy officer: Acting Accounting Officer 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Kurt Jr Simmons director 3220 TILLMAN DRIVE, BENSALEM PA 19020
John Briggs director 3220 TILLMAN DRIVE SUITE 300, BENSALEM PA 19020
Patrick J Orr officer: EVP & Chief Revenue Officer 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Andrew Kush officer: Executive Vice President 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Dino D Ottaviano director 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Michael E Mcbryan director, officer: Executive Vice President 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Robert L Frome director 3220 TILLMAN DRIVE SUITE 300, BENSALEM PA 19020
Laura K Grant director 3220 TILLMAN, DRIVE, BENSALEM PA 19020
Robert J Moss director 3220 TILLMAN DRIVE SUITE 300, BENSALEM PA 19020
Daniela Castagnino director 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Diane S Casey director 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
John Christopher Shea officer: Chief Financial Officer 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
David Hurlock officer: Executive Vice President & COO 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Daniel P Mccartney director, officer: Chief Executive Officer 3220 TILLMAN DR, SUITE 300, BENSALEM PA 19020