GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Command Security Corp (AMEX:MOC) » Definitions » Altman Z-Score

Command Security (Command Security) Altman Z-Score : 5.45 (As of May. 11, 2024)


View and export this data going back to 1990. Start your Free Trial

What is Command Security 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.

Command Security has a Altman Z-Score of 5.45, 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 Command Security's Altman Z-Score or its related term are showing as below:


Command Security Altman Z-Score Historical Data

The historical data trend for Command Security'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.

Command Security Altman Z-Score Chart

Command Security Annual Data
Trend Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.94 5.37 4.51 4.61 4.74

Command Security Quarterly Data
Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18
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 4.29 4.74 5.05 5.92 5.44

Competitive Comparison of Command Security's Altman Z-Score

For the Security & Protection Services subindustry, Command Security'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.


Command Security's Altman Z-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Command Security's Altman Z-Score distribution charts can be found below:

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



Command Security 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.

Command Security'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*0.2969+1.4*-0.0163+3.3*0.0113+0.6*1.2187+1.0*4.3441
=5.45

* 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. 2018:
Total Assets was $39.6 Mil.
Total Current Assets was $34.8 Mil.
Total Current Liabilities was $23.1 Mil.
Retained Earnings was $-0.6 Mil.
Pre-Tax Income was 0.021 + -0.095 + 1.049 + -1.129 = $-0.2 Mil.
Interest Expense was -0.129 + -0.124 + -0.168 + -0.181 = $-0.6 Mil.
Revenue was 41.054 + 40.487 + 44.089 + 46.226 = $171.9 Mil.
Market Cap (Today) was $28.8 Mil.
Total Liabilities was $23.6 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
=(34.844 - 23.098)/39.561
=0.2969

X2=Retained Earnings/Total Assets
=-0.646/39.561
=-0.0163

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-0.154 - -0.602)/39.561
=0.0113

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=28.780/23.616
=1.2187

X5=Revenue/Total Assets
=171.856/39.561
=4.3441

The zones of discrimination were as such:

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

Command Security has a Altman Z-Score of 5.45 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.


Command Security  (AMEX:MOC) 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.


Command Security Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Command Security's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Command Security (Command Security) Business Description

Traded in Other Exchanges
N/A
Address
Command Security Corp is the provider of full-solution security services. The company provides uniformed security officers and aviation services to commercial, education, financial, healthcare, hospitality, residential, industrial, aviation and governmental customers throughout the United States. In addition, it offers various services including recruiting, hiring, training and supervising all operating personnel as well as paying and providing them with uniforms, fringe benefits, and workers compensation insurance.
Executives
James P Heffernan director 1012 BAY STREET, DELRAY BEACH FL 33483
Jerry Lavell Johnson director 512 HERNDON PARKWAY, SUITE A, HERNDON VA 20170
David E Smith 10 percent owner 888 LINDA FLORA DRIVE, LOS ANGELES CA 90049
Trinad Capital Master Fund Ltd. 10 percent owner 4751 WILSHIRE BLVD, 3RD FLOOR, LOS ANGELES CA 90010
Robert S Ellin 10 percent owner 4751 WILSHIRE BLVD, 3RD FLOOR, LOS ANGELES CA 90010
Trinad Capital L.p. 10 percent owner 4751 WILSHIRE BLVD, 3RD FLOOR, LOS ANGELES CA 90010
Trinad Management, Llc 10 percent owner 4751 WILSHIRE BLVD, 3RD FLOOR, LOS ANGELES DE 90010
Trinad Advisors Ii, Llc 10 percent owner 4751 WILSHIRE BLVD, 3RD FLOOR, LOS ANGELES CA 90010
Barry Regenstein director, officer: President and CFO C/O COMMAND SECURITY CORP., RTE 55 LEXINGTON PARK P.O. BOX 340, LAGRANGEVILLE NY 12540
Jay Wolf 10 percent owner 981 LINDA FLORA DRIVE, LOS ANGELES, CA 90049
Bruce Galloway director C/O GALLOWAY CAPITAL MANAGEMENT LLC, 720 FIFTH AVENUE 10TH FLOOR, NEW YORK NY 10019
Wade Martin R Iii director 100 ROWLAND WAY, SUITE 300, NOVATO CA 94945