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Forrester Research Altman Z-Score

: 2.32 (As of Today)
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Warning Sign:

Altman Z-score of 2.32 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

Forrester Research has a Altman Z-Score of 2.32, indicating it is in Grey Zones. This implies that Forrester Research 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 Forrester Research's Altman Z-Score or its related term are showing as below:

NAS:FORR' s Altman Z-Score Range Over the Past 10 Years
Min: 1.6   Med: 4.21   Max: 10.7
Current: 2.32

1.6
10.7

During the past 13 years, Forrester Research's highest Altman Z-Score was 10.70. The lowest was 1.60. And the median was 4.21.


Forrester Research Altman Z-Score Historical Data

The historical data trend for Forrester Research'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.

Forrester Research Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.49 4.23 4.33 1.80 2.01

Forrester Research Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 1.92 1.94 2.01 2.03 2.16

Competitive Comparison

For the Consulting Services subindustry, Forrester Research'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.

   

Forrester Research Altman Z-Score Distribution

For the Business Services industry and Industrials sector, Forrester Research's Altman Z-Score distribution charts can be found below:

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



Forrester Research 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.

Forrester Research'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*-0.0637+1.4*0.2099+3.3*0.0356+0.6*2.1329+1.0*0.7054
=2.32

* 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. 2021:
Total Assets was $668.5 Mil.
Total Current Assets was $245.0 Mil.
Total Current Liabilities was $287.6 Mil.
Retained Earnings was $140.3 Mil.
Pre-Tax Income was 11.816 + 5.937 + 2.711 + -1.359 = $19.1 Mil.
Interest Expense was -1.066 + -1.129 + -1.236 + -1.259 = $-4.7 Mil.
Revenue was 128.67 + 113.781 + 120.521 + 108.577 = $471.5 Mil.
Market Cap (Today) was $996.0 Mil.
Total Liabilities was $466.9 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
=(244.951 - 287.56)/668.45
=-0.0637

X2=Retained Earnings/Total Assets
=140.28/668.45
=0.2099

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(19.105 - -4.69)/668.45
=0.0356

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=995.969/466.948
=2.1329

X5=Revenue/Total Assets
=471.549/668.45
=0.7054

The zones of discrimination were as such:

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

Forrester Research has a Altman Z-Score of 2.32 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.


Forrester Research  (NAS:FORR) 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.


Forrester Research Altman Z-Score Related Terms

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


Forrester Research Business Description

Forrester Research logo
Industry
Industrials » Business Services NAICS : 541910 SIC : 8732
Traded in Other Exchanges
Address
60 Acorn Park Drive, Cambridge, MA, USA, 02140
Forrester Research Inc is a United-States-based company that provides independent research, data, and advisory services. It operates through the following segments: The Research segment develops and delivers research, connect, and analytics products; The consulting segment includes the revenues and the related costs of the company's consulting organization, and the Events segment is engaged in developing and hosting in-person and virtual events.
Executives
Peltzman Steven P. officer: CBTO C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Bradford Neil director C/O FORRESTER RESEARCH INC 400 TECHNOLOGY SQ CAMBRIDGE MA 02129
Johnson Carrie officer: Chief Research Officer C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Teichgraeber Gretchen director C/O FORRESTER RESEARCH 400 TECHNOLOGY SQUARE CAMBRIDGE MA 02139
Doyle Michael A officer: Chief Financial Officer C/O EASYLINK SERVICES CORPORATION 33 KNIGHTSBRIDGE ROAD PISCATAWAY NJ 08854
Chouinard Scott officer: Chief Accounting Officer C/O FORRESTER RESEARCH, INC. 400 TECHNOLOGY SQUARE CAMBRIDGE MA 02139
Darrah Ryan officer: Chief Legal Officer C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Hippler Kelley officer: Chief Sales Officer C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DR. CAMBRIDGE MA 02140
Kottmann Sherri officer: Chief People Officer C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Kasparian Michael officer: Chief Information Officer C/O FORRESTER RESEARCH 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Birch Jean director 3050 SOFT HORIZON WAY LAS VEGAS NV 89135
Boyce David director C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Wassenaar Yvonne director C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Friscia Anthony J director C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Galford Robert director C/O FORRESTER RESEARCH 400 TECHNOLOGY SQUARE CAMBRIDGE MA 02139

Forrester Research Headlines

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