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Houston Wire & Cable Co (Houston Wire & Cable Co) Altman Z-Score : 3.90 (As of Apr. 30, 2024)


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What is Houston Wire & Cable Co 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.

Houston Wire & Cable Co has a Altman Z-Score of 3.90, 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 Houston Wire & Cable Co's Altman Z-Score or its related term are showing as below:


Houston Wire & Cable Co Altman Z-Score Historical Data

The historical data trend for Houston Wire & Cable Co'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.

Houston Wire & Cable Co Altman Z-Score Chart

Houston Wire & Cable Co Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.59 3.85 3.95 3.15 3.56

Houston Wire & Cable Co Quarterly Data
Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21
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 3.02 3.00 3.12 3.56 3.89

Competitive Comparison of Houston Wire & Cable Co's Altman Z-Score

For the Industrial Distribution subindustry, Houston Wire & Cable Co'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.


Houston Wire & Cable Co's Altman Z-Score Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Houston Wire & Cable Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Houston Wire & Cable Co's Altman Z-Score falls into.



Houston Wire & Cable Co 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.

Houston Wire & Cable Co'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*0.5655+1.4*0.625+3.3*-0.0812+0.6*1.4479+1.0*1.7503
=3.90

* 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. 2021:
Total Assets was $154.0 Mil.
Total Current Assets was $115.9 Mil.
Total Current Liabilities was $28.8 Mil.
Retained Earnings was $96.2 Mil.
Pre-Tax Income was 0.265 + -10.466 + -0.863 + -2.662 = $-13.7 Mil.
Interest Expense was -0.152 + -0.256 + -0.344 + -0.474 = $-1.2 Mil.
Revenue was 67.03 + 65.46 + 70.247 + 66.777 = $269.5 Mil.
Market Cap (Today) was $89.5 Mil.
Total Liabilities was $61.8 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
=(115.86 - 28.789)/153.978
=0.5655

X2=Retained Earnings/Total Assets
=96.239/153.978
=0.625

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-13.726 - -1.226)/153.978
=-0.0812

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=89.478/61.797
=1.4479

X5=Revenue/Total Assets
=269.514/153.978
=1.7503

The zones of discrimination were as such:

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

Houston Wire & Cable Co has a Altman Z-Score of 3.90 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.


Houston Wire & Cable Co  (NAS:HWCC) 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.


Houston Wire & Cable Co Altman Z-Score Related Terms

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Houston Wire & Cable Co (Houston Wire & Cable Co) Business Description

Traded in Other Exchanges
N/A
Address
10201 North Loop East, Houston, TX, USA, 77029
Houston Wire & Cable Co is a distributor of electrical and mechanical wire and cable in the U.S. industrial market. The company offers products in most categories of wire and cable, including continuous and interlocked armor cable; electronic wire and cable; flexible and portable cord; instrumentation and thermocouple cable; primary and secondary aluminum distribution cable, hardware and corrosion-resistant products including inch and metric bolts, screws, nuts, washers, rivets, and hose clamps. It has three target markets: utility market, industrial market, and infrastructure market.
Executives
Roy W Haley director COMMERCE COURT FOUR STATION SQUARE, SUITE 700, PITTSBURGH PA 15219
G Gary Yetman director P.O. BOX 2139 EDWARDS CO 81632
William H Sheffield director 401 QUEENS QUAY WEST SUITE 104 TORONTO A6 M5V 2Y2
Eric Wayne Davis officer: INTERIM CFO & CAO 10201 NORTH LOOP EAST HOUSTON TX 77029
Jerry Michael Zurovchak officer: SENIOR VP & COO 10201 NORTH LOOP EAST HOUSTON TX 77029
Christopher M. Micklas officer: VP & CFO ONE MEMORIAL CITY PLAZA, 800 GESSNER ROAD, SUITE 875, HOUSTON TX 77024
Pokluda James L Iii director 10201 N. LOOP EAST HOUSTON TX 77029
Sandford W. Rothe director 1 GOOSEBERRY LANE CHERRY HILLS VILLAGE CO 80113
David Nierenberg director, 10 percent owner 19605 NE 8TH STREET, CAMAS WA 98607
Nierenberg Investment Management Co 10 percent owner 19605 NE 8TH ST, CAMAS WA 98607
Margaret Laird director 1283 BLACKBIRD COURT BOULDER CO 80303
Robert L Reymond director 10721 W. 118TH TERRACE OVERLAND PARK KS 66210
Michael T Campbell director HOUSTON WIRE & CABLE COMPANY, 10201 NORTH LOOP EAST, HOUSTON TX 77029
Mark A Ruelle director C/O EVERGY, INC., 1200 MAIN STREET, KANSAS CITY MO 64105
Nicol G Graham officer: VP, CFO, TREASURER & SECRETARY 10201 NORTH LOOP EAST HOUSTON TX 77029

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