>
Switch to:

The Descartes Systems Group Altman Z-Score

: 21.12 (As of Today)
View and export this data going back to 1999. Start your Free Trial

Good Sign:

Altman Z-score of 21.25 is strong.

The Descartes Systems Group has a Altman Z-Score of 21.12, 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 The Descartes Systems Group's Altman Z-Score or its related term are showing as below:

NAS:DSGX' s Altman Z-Score Range Over the Past 10 Years
Min: -9.14   Med: 6.74   Max: 52.67
Current: 21.25

-9.14
52.67

During the past 13 years, The Descartes Systems Group's highest Altman Z-Score was 52.67. The lowest was -9.14. And the median was 6.74.


The Descartes Systems Group Altman Z-Score Historical Data

The historical data trend for The Descartes Systems Group'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.

The Descartes Systems Group Annual Data
Trend Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.02 10.36 12.07 19.28 20.99

The Descartes Systems Group 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 21.12 20.99 21.59 22.31 24.19

Competitive Comparison

For the Software - Application subindustry, The Descartes Systems Group'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.

   

The Descartes Systems Group Altman Z-Score Distribution

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

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



The Descartes Systems Group 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.

The Descartes Systems Group'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*0.104+1.4*-0.0142+3.3*0.0852+0.6*33.9772+1.0*0.3475
=21.12

* 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 USD1,167.5 Mil.
Total Current Assets was USD246.9 Mil.
Total Current Liabilities was USD125.6 Mil.
Retained Earnings was USD-16.6 Mil.
Pre-Tax Income was 27.653 + 25.908 + 23.184 + 21.646 = USD98.4 Mil.
Interest Expense was -0.292 + -0.272 + -0.277 + -0.277 = USD-1.1 Mil.
Revenue was 108.911 + 104.57 + 98.838 + 93.408 = USD405.7 Mil.
Market Cap (Today) was USD5,981.1 Mil.
Total Liabilities was USD176.0 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
=(246.932 - 125.564)/1167.466
=0.104

X2=Retained Earnings/Total Assets
=-16.582/1167.466
=-0.0142

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(98.391 - -1.118)/1167.466
=0.0852

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=5981.143/176.034
=33.9772

X5=Revenue/Total Assets
=405.727/1167.466
=0.3475

The zones of discrimination were as such:

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

The Descartes Systems Group has a Altman Z-Score of 21.12 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.


The Descartes Systems Group  (NAS:DSGX) 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.


The Descartes Systems Group Altman Z-Score Related Terms

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


The Descartes Systems Group Business Description

The Descartes Systems Group logo
Industry
Technology » Software NAICS : 541511 SIC : 7721
Traded in Other Exchanges
Address
120 Randall Drive, Waterloo, ON, CAN, N2V 1C6
The Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. The core product is the Global Logistics Network, which is best understood as transaction driven. Descartes charges clients to send/receive messages, data, and documents on the GLN (the transactions). Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows for Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.

The Descartes Systems Group Headlines

Other Sources

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)