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Duck Creek Technologies Altman Z-Score

: 14.22 (As of Today)
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Good Sign:

Altman Z-score of 14.22 is strong.

Duck Creek Technologies has a Altman Z-Score of 14.22, 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 Duck Creek Technologies's Altman Z-Score or its related term are showing as below:

DCT' s Altman Z-Score Range Over the Past 10 Years
Min: 14.22   Med: 29.1   Max: 36.03
Current: 14.22

During the past 5 years, Duck Creek Technologies's highest Altman Z-Score was 36.03. The lowest was 14.22. And the median was 29.10.


Duck Creek Technologies Altman Z-Score Historical Data

The historical data trend for Duck Creek Technologies'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.

Duck Creek Technologies Annual Data
Trend Aug17 Aug18 Aug19 Aug20 Aug21
Altman Z-Score
- - - 24.60 33.27

Duck Creek Technologies Quarterly Data
Aug17 Aug18 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 30.65 33.27 27.55 23.65 18.46

Competitive Comparison

For the Software - Application subindustry, Duck Creek Technologies'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.

   

Duck Creek Technologies Altman Z-Score Distribution

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

* The bar in red indicates where Duck Creek Technologies's Altman Z-Score falls into.



Duck Creek Technologies 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.

Duck Creek Technologies'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*0.4611+1.4*-0.0578+3.3*-0.0114+0.6*22.3783+1.0*0.3588
=14.22

* 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 $816.7 Mil.
Total Current Assets was $439.9 Mil.
Total Current Liabilities was $63.3 Mil.
Retained Earnings was $-47.2 Mil.
Pre-Tax Income was -5.357 + -0.456 + 1.066 + -4.719 = $-9.5 Mil.
Interest Expense was 0 + -0.035 + -0.118 + -0.013 = $-0.2 Mil.
Revenue was 72.364 + 76.418 + 73.421 + 70.854 = $293.1 Mil.
Market Cap (Today) was $1,870.6 Mil.
Total Liabilities was $83.6 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
=(439.873 - 63.312)/816.698
=0.4611

X2=Retained Earnings/Total Assets
=-47.216/816.698
=-0.0578

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-9.466 - -0.166)/816.698
=-0.0114

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1870.579/83.589
=22.3783

X5=Revenue/Total Assets
=293.057/816.698
=0.3588

The zones of discrimination were as such:

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

Duck Creek Technologies has a Altman Z-Score of 14.22 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.


Duck Creek Technologies  (NAS:DCT) 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.


Duck Creek Technologies Altman Z-Score Related Terms

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


Duck Creek Technologies Business Description

Duck Creek Technologies logo
Traded in Other Exchanges
N/A
Address
22 Boston Wharf Road, Floor 10, Boston, MA, USA, 02210
Duck Creek Technologies Inc is a technology company. The company is one of the leading SaaS provider of core systems for the P&C insurance industry. The product portfolio includes distribution management, reinsurance management, digital management, and other services. Geographically, it derives a majority of revenue from the United States.
Executives
Keeney Jessica Kate officer: Chief Product Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD BOSTON MA 02210
Rhodes Kevin R officer: Chief Financial Officer 20 HARVARD MILLS SQUARE WAKEFIELD MA 01880
Bloom William A director ONE TOWER SQUARE HARTFORD CT 06183
Winter Jeffrey Howard officer: Chief Marketing Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Vaidyanathan Nageswaran officer: Chief Technology Officer C/O DUCK CREEK TECHNOLOGIES INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Townsend Courtney officer: Chief People Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD BOSTON MA 02210
Dodd Julie director C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Foster Matthew R. officer: Chief Operating Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Disco (guernsey) Gp Co. Ltd director BOX 656, EAST WING, TRAFALGAR COURT LES BANQUES, ST PETER PORT Y7 GY1 3PP
Nicoll Stuart director C/O ACCENTURE, 161 N. CLARK STREET CHICAGO IL 60601
Fitzgerald Scott officer: Chief Marketing Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Dey Anirban officer: Chief Product & Technology Ofc C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Jackowski Michael A. director, officer: Chief Executive Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Van Biert Eugene Jr. officer: Chief Revenue Officer C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210
Wilson George Larry director C/O DUCK CREEK TECHNOLOGIES, INC. 22 BOSTON WHARF ROAD, FLOOR 10 BOSTON MA 02210

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