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Bassett Furniture Industries Altman Z-Score

: 2.70 (As of Today)
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Warning Sign:

Altman Z-score of 2.69 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Bassett Furniture Industries has a Altman Z-Score of 2.70, indicating it is in Grey Zones. This implies that Bassett Furniture Industries is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

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 Bassett Furniture Industries's Altman Z-Score or its related term are showing as below:

BSET' s Altman Z-Score Range Over the Past 10 Years
Min: 1.27   Med: 4.22   Max: 12.46
Current: 2.69

During the past 13 years, Bassett Furniture Industries's highest Altman Z-Score was 12.46. The lowest was 1.27. And the median was 4.22.


Bassett Furniture Industries Altman Z-Score Historical Data

The historical data trend for Bassett Furniture Industries'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.

Bassett Furniture Industries Annual Data
Trend Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.26 3.96 3.51 1.71 2.13

Bassett Furniture Industries Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
Altman Z-Score 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 Premium Member Only Premium Member Only Premium Member Only 2.41 2.28 2.13 2.34 2.60

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, Bassett Furniture Industries'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.

   

Bassett Furniture Industries Altman Z-Score Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Bassett Furniture Industries's Altman Z-Score distribution charts can be found below:

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



Bassett Furniture Industries 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.

Bassett Furniture Industries'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*0.2432+1.4*0.3516+3.3*0.0646+0.6*0.8473+1.0*1.1973
=2.70

* 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 May. 2022:
Total Assets was $413.8 Mil.
Total Current Assets was $221.7 Mil.
Total Current Liabilities was $121.1 Mil.
Retained Earnings was $145.5 Mil.
Pre-Tax Income was 10.385 + 5.849 + 6.366 + 4.143 = $26.7 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.0 Mil.
Revenue was 128.706 + 117.864 + 129.896 + 118.906 = $495.4 Mil.
Market Cap (Today) was $189.5 Mil.
Total Liabilities was $223.6 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
=(221.722 - 121.086)/413.753
=0.2432

X2=Retained Earnings/Total Assets
=145.471/413.753
=0.3516

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(26.743 - 0)/413.753
=0.0646

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=189.458/223.612
=0.8473

X5=Revenue/Total Assets
=495.372/413.753
=1.1973

The zones of discrimination were as such:

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

Bassett Furniture Industries has a Altman Z-Score of 2.70 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Bassett Furniture Industries  (NAS:BSET) 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.


Bassett Furniture Industries Altman Z-Score Related Terms

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


Bassett Furniture Industries Business Description

Bassett Furniture Industries logo
Traded in Other Exchanges
N/A
Address
3525 Fairystone Park Highway, P.O. Box 626, Bassett, VA, USA, 24055
Bassett Furniture Industries Inc is a manufacturer, importer, and retailer of home furnishings products in the United States. It operates through the following segments: The Wholesale segment focuses on the design, manufacture, sourcing, sale, and distribution of furniture products. The Retail segment consists of company-owned stores. The Logistical Services segment offers shipping, delivery, and warehousing services.
Executives
Battle Emma S. director 101 NORTH CHERRY STREET, SUITE 501 WINSTON SALEM NC 27101
Lucas Stefanie Jane officer: SVP, Chief Merchandising Offic P.O. BOX 626 BASSETT VA 24055
Kelchner-strong Kara Ann officer: SVP, Customer Experience Offic P.O. BOX 626 BASSETT VA 24055
Hamlet Virginia W. director P.O. BOX 626 BASSETT VA 24055
Belk John R director BELK INC 2801 WEST TYVOLA ROAD CHARLOTTE NC 28217-4500
Baker David C officer: SVP, Corporate Retail 1012 SHERATON COURT MARTINSVILLE VA 24112
Hawn Jack Leroy Jr officer: Pres. of Zenith Freight Lines 1123 4TH STREET SW CONOVER NC 28613
Cohenour Bruce officer: SR VP/SALES & MERCHANDISING HOOKER FURNITURE CORPORATION 440 EAST COMMONWEALTH BLVD MARTINSVILLE VA 24112
Mcdowell John Walter director 2826 LAZY LANE WINSTON SALEM NC 27106
Daniel John Michael officer: V P, Chief Accounting Officer P O BOX 626 3525 FAIRYSTONE PARK HWY BASSETT VA 24055
Cashman Kristina K director
Camp Jason officer: Senior VP, Retail C/O RESTORATION HARDWARE, INC. 15 KOCH ROAD, SUITE J CORTE MADERA CA 94925
Pond Dale director
Stonecipher David A director BASSETT FURNITURE INDUSTRIES INC PO BOX 626 BASSETT VA 24055
Haworth Howard H director BASSETT FURNITURE INDUSTRIES INC P O BOX 626 BASSETT VA 24055

Bassett Furniture Industries Headlines

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