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Alphabet(Google) Altman Z-Score

: 12.31 (As of Today)
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Good Sign:

Altman Z-score of 12.09 is strong.

Alphabet(Google) has a Altman Z-Score of 12.31, 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 Alphabet(Google)'s Altman Z-Score or its related term are showing as below:

GOOGL' s Altman Z-Score Range Over the Past 10 Years
Min: 3.25   Med: 12.57   Max: 93.81
Current: 12.09

During the past 13 years, Alphabet(Google)'s highest Altman Z-Score was 93.81. The lowest was 3.25. And the median was 12.57.


Alphabet(Google) Altman Z-Score Historical Data

The historical data trend for Alphabet(Google)'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.

Alphabet(Google) Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.23 10.32 9.73 9.54 13.41

Alphabet(Google) Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 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 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 12.57 13.03 13.41 13.40 11.30

Competitive Comparison

For the Internet Content & Information subindustry, Alphabet(Google)'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.

   

Alphabet(Google) Altman Z-Score Distribution

For the Interactive Media industry and Communication Services sector, Alphabet(Google)'s Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Alphabet(Google)'s Altman Z-Score falls into.



Alphabet(Google) 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.

Alphabet(Google)'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*0.3126+1.4*0.5542+3.3*0.2415+0.6*15.9712+1.0*0.7831
=12.31

* 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 $355,185 Mil.
Total Current Assets was $172,371 Mil.
Total Current Liabilities was $61,354 Mil.
Retained Earnings was $196,845 Mil.
Pre-Tax Income was 19014 + 18934 + 24402 + 23064 = $85,414 Mil.
Interest Expense was -83 + -83 + -117 + -77 = $-360 Mil.
Revenue was 69685 + 68011 + 75325 + 65118 = $278,139 Mil.
Market Cap (Today) was $1,593,378 Mil.
Total Liabilities was $99,766 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
=(172371 - 61354)/355185
=0.3126

X2=Retained Earnings/Total Assets
=196845/355185
=0.5542

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(85414 - -360)/355185
=0.2415

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1593377.996/99766
=15.9712

X5=Revenue/Total Assets
=278139/355185
=0.7831

The zones of discrimination were as such:

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

Alphabet(Google) has a Altman Z-Score of 12.31 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.


Alphabet(Google)  (NAS:GOOGL) 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.


Alphabet(Google) Altman Z-Score Related Terms

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


Alphabet(Google) Business Description

Alphabet(Google) logo
Address
1600 Amphitheatre Parkway, Mountain View, CA, USA, 94043
Alphabet Inc is a holding company, with Google, the Internet media giant, as a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone, and smart homes products, which include Nest and Google Home, also contribute to other revenue. Alphabet's moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), faster Internet access to homes (Google Fiber), self-driving cars (Waymo), and more. Alphabet's operating margin has been 25%-30%, with Google at 30% and other bets operating at a loss.
Executives
Schindler Philipp officer: SVP, Chief Business Officer C/O ALPHABET INC. 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94568
Walker John Kent officer: SVP, Global Affairs and CLO 1600 AMPHITHEATRE PRKW MOUNTAIN VIEW CA 94043
Raghavan Prabhakar officer: Senior Vice President C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94043
Arnold Frances director 5200 ILLUMINA WAY SAN DIEGO CA 92122
Washington Robin L director 333 LAKESIDE DRIVE FOSTER CITY CA 94404
O'toole Amie Thuener officer: VP, Chief Accounting Officer C/O ALPHABET INC. 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94043
Lee Antonio 10 percent owner, other: Investor/Large Shareholder 4009 216TH STREET MATTESON IL 60443
Ferguson Roger W. Jr. director CORNING INCORPORATED ONE RIVERFRONT PLAZA CORNING NY 14831
Campbell James Grier officer: VP, Alphabet Corp. Controller 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94043
Hennessy John L director
Mulally Alan R director P.O. BOX 995 MERCER ISLAND WA 98040
Shriram Kavitark Ram director 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Mather Ann director
Tilghman Shirley M director GOOGLE INC. 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Otellini Paul S director 2200 MISSION COLLEGE BLVD RNB-4-151 SANTA CLARA CA 95054

Alphabet(Google) Headlines

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