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Coinbase Global Altman Z-Score

: 0.26 (As of Today)
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Warning Sign:

Altman Z-score of 0.26 is in distress zone. This implies bankruptcy possibility in the next two years.

Coinbase Global has a Altman Z-Score of 0.26, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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 Coinbase Global's Altman Z-Score or its related term are showing as below:

COIN' s Altman Z-Score Range Over the Past 10 Years
Min: 0.2   Med: 3.65   Max: 4.25
Current: 0.26

During the past 3 years, Coinbase Global's highest Altman Z-Score was 4.25. The lowest was 0.20. And the median was 3.65.


Coinbase Global Altman Z-Score Historical Data

The historical data trend for Coinbase Global'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.

Coinbase Global Annual Data
Trend Dec19 Dec20 Dec21
Altman Z-Score
- - 3.72

Coinbase Global Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.25 3.65 3.72 2.93 0.20

Competitive Comparison

For the Software - Application subindustry, Coinbase Global'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.

   

Coinbase Global Altman Z-Score Distribution

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

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



Coinbase Global 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.

Coinbase Global'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*0.0566+1.4*0.0268+3.3*-0.0061+0.6*0.2078+1.0*0.0549
=0.26

* 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 Jun. 2022:
Total Assets was $105,468 Mil.
Total Current Assets was $102,162 Mil.
Total Current Liabilities was $96,194 Mil.
Retained Earnings was $2,827 Mil.
Pre-Tax Income was -1240.569 + -609.445 + 890.54 + 270.86 = $-689 Mil.
Interest Expense was -23.656 + -22.138 + 0 + 0 = $-46 Mil.
Revenue was 808.325 + 1166.436 + 2498.463 + 1311.908 = $5,785 Mil.
Market Cap (Today) was $20,707 Mil.
Total Liabilities was $99,655 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
=(102162.25 - 96194.296)/105468.243
=0.0566

X2=Retained Earnings/Total Assets
=2827.111/105468.243
=0.0268

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-688.614 - -45.794)/105468.243
=-0.0061

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=20706.534/99654.854
=0.2078

X5=Revenue/Total Assets
=5785.132/105468.243
=0.0549

The zones of discrimination were as such:

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

Coinbase Global has a Altman Z-Score of 0.26 indicating it is in Distress Zones.

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


Coinbase Global  (NAS:COIN) 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.


Coinbase Global Altman Z-Score Related Terms

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


Coinbase Global Business Description

Coinbase Global logo
Traded in Other Exchanges
Address
c/o The Corporation Trust Company, 1209 Orange Street, Wilmington, DE, USA, 19801
Founded in 2012, Coinbase is the leading cryptocurrency exchange platform in the United States. The company intends to be the safe and regulation-compliant point of entry for retail investors and institutions into the cryptocurrency economy. Users can establish an account directly with the firm, instead of using an intermediary, and many choose to allow Coinbase to act as a custodian for their cryptocurrency, giving the company breadth beyond that of a traditional financial exchange. While the company still generates the majority of its revenue from transaction fees charged to its retail customers, Coinbase uses internal investment and acquisitions to expand into adjacent businesses, such as prime brokerage, data analytics, and collateralized lending.
Executives
Lutke Tobias director C/O SHOPIFY INC. 150 ELGIN ST., 8TH FLOOR OTTAWA A6 K2P 1L4
Ah Capital Management, L.l.c. 10 percent owner 2865 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Cnk Fund I, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Choi Emilie officer: President C/O COINBASE GLOBAL, INC. 100 PINE STREET, SUITE 1250 SAN FRANCISCO CA 94111
Andreessen Horowitz Lsv Fund I, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Ah Equity Partners Lsv I, L.l.c. 10 percent owner 2865 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Andreessen Horowitz Lsv Fund I-q, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Andreessen Horowitz Lsv Fund I-b, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Union Square 2012 Gp, L.l.c. 10 percent owner 915 BROADWAY 19TH FLOOR NEW YORK NY 10010
Usv Opportunity 2014, Lp 10 percent owner 915 BROADWAY, 19TH FLOOR NEW YORK NY 10010
Usv Opportunity Investors 2014, Lp 10 percent owner 915 BROADWAY, 19TH FLOOR NEW YORK NY 10010
Usv Opportunity 2014 Gp, Llc 10 percent owner 915 BROADWAY, 19TH FLOOR NEW YORK NY 10010
Brian Armstrong Living Trust 10 percent owner C/O COINBASE GLOBAL, INC. 100 PINE STREET, SUITE 1250 SAN FRANCISCO CA 94111
Cnk Equity Partners I, L.l.c. 10 percent owner 2865 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Cnk Fund I-b, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025

Coinbase Global Headlines

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