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DocuSign Altman Z-Score

: 7.77 (As of Today)
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Good Sign:

Altman Z-score of 7.67 is strong.

DocuSign has a Altman Z-Score of 7.77, 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 DocuSign's Altman Z-Score or its related term are showing as below:

NAS:DOCU' s Altman Z-Score Range Over the Past 10 Years
Min: -0.47   Med: 5.87   Max: 16.11
Current: 7.67

-0.47
16.11

During the past 6 years, DocuSign's highest Altman Z-Score was 16.11. The lowest was -0.47. And the median was 5.87.


DocuSign Altman Z-Score Historical Data

The historical data trend for DocuSign'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.

DocuSign Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21
Altman Z-Score
Premium Member Only - -0.47 4.14 5.87 12.95

DocuSign Quarterly Data
Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21
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 13.38 12.95 12.32 16.11 -

Competitive Comparison

For the Software - Application subindustry, DocuSign'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.

   

DocuSign Altman Z-Score Distribution

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

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



DocuSign 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.

DocuSign'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*-0.0223+1.4*-0.584+3.3*-0.0372+0.6*13.213+1.0*0.812
=7.77

* 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 Oct. 2021:
Total Assets was $2,411 Mil.
Total Current Assets was $1,207 Mil.
Total Current Liabilities was $1,260 Mil.
Retained Earnings was $-1,408 Mil.
Pre-Tax Income was -5.783 + -25.343 + -6.372 + -63.553 = $-101 Mil.
Interest Expense was -2.425 + -1.669 + -1.672 + -5.588 = $-11 Mil.
Revenue was 545.463 + 511.844 + 469.078 + 430.898 = $1,957 Mil.
Market Cap (Today) was $28,684 Mil.
Total Liabilities was $2,171 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
=(1206.589 - 1260.367)/2410.503
=-0.0223

X2=Retained Earnings/Total Assets
=-1407.744/2410.503
=-0.584

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-101.051 - -11.354)/2410.503
=-0.0372

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=28684.481/2170.934
=13.213

X5=Revenue/Total Assets
=1957.283/2410.503
=0.812

The zones of discrimination were as such:

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

DocuSign has a Altman Z-Score of 7.77 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.


DocuSign  (NAS:DOCU) 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.


DocuSign Altman Z-Score Related Terms

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


DocuSign Business Description

DocuSign logo
Industry
Technology » Software NAICS : 511210 SIC : 7379
Traded in Other Exchanges
Address
221 Main Street, Suite 1550, San Francisco, CA, USA, 94105
DocuSign offers the Agreement Cloud, a broad cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device. The company was founded in 2003 and completed its IPO in May 2018.
Executives
Gaylor Cynthia officer: Chief Financial Officer C/O PIVOTAL SOFTWARE, INC. 875 HOWARD STREET, FIFTH FLOOR SAN FRANCISCO CA 94103
Olrich Scott V. officer: Chief Operating Officer C/O DOCUSIGN, INC. 221 MAIN ST., SUITE 1000 SAN FRANCISCO CA 94105
Salem Enrique T director SYMANTEC CORPORATION 20330 STEVENS CREEK BLVD. CUPERTINO CA 95014
Solvik Peter director 2105 SOUTH BASCOM AVE. #370 CAMPBELL CA 95008
Alhadeff Loren officer: Chief Revenue Officer C/O DOCUSIGN, INC. SUITE 1000 SAN FRANCISCO CA 94105
Wilderotter Mary Agnes director 115 ALPINE TERRACE OAKLAND CA 94618
Springer Daniel D. director, officer: President and CEO C/O DOCUSIGN, INC. 221 MAIN ST., SUITE 1000 SAN FRANCISCO CA 94105
Phi Tram T officer: SVP, General Counsel C/O IMPERVA, INC. 3400 BRIDGE PARKWAY REDWOOD SHORES CA 94065
Suh Inhi Cho director C/O DOCUSIGN, INC. 221 MAIN STREET, SUITE 1000 SAN FRANCISCO CA 94105
Singh Sudhir Steven director 6222 185TH AVE REDMOND WA 98052
Irving Blake director 14455 N. HAYDEN RD. SCOTTSDALE AZ 85260
Briggs Teresa director 2225 LAWSON LANE SANTA CLARA CA 95054
Beer James A director MCKESSON CORPORATION ONE POST STREET SAN FRANCISCO CA 94104
Wolberg Kirsten O. officer: Chief Technology & Ops Officer 900 NORTH MCCARTHY BLVD MILPITAS CA 95035
Sheridan Michael J officer: Chief Financial Officer C/O DOCUSIGN, INC. 221 MAIN ST., SUITE 1000 SAN FRANCISCO CA 94105

DocuSign Headlines

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