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GreenSky Altman Z-Score

: 1.61 (As of Today)
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Warning Sign:

Altman Z-score of 1.61 is in distress zone. This implies bankrupcy possibility in the next two years.

GreenSky has a Altman Z-Score of 1.61, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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 GreenSky's Altman Z-Score or its related term are showing as below:

NAS:GSKY' s Altman Z-Score Range Over the Past 10 Years
Min: 1.21   Med: 2.6   Max: 4.78
Current: 1.61

1.21
4.78

During the past 6 years, GreenSky's highest Altman Z-Score was 4.78. The lowest was 1.21. And the median was 2.60.


GreenSky Altman Z-Score Historical Data

The historical data trend for GreenSky'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.

GreenSky Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only - 2.88 3.13 2.60 1.21

GreenSky Quarterly Data
Dec15 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 1.73 1.54 1.21 1.51 1.62

Competitive Comparison

For the Software - Infrastructure subindustry, GreenSky'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.

   

GreenSky Altman Z-Score Distribution

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

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



GreenSky 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.

GreenSky'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*0.3572+1.4*0.0411+3.3*0.091+0.6*0.6928+1.0*0.4062
=1.61

* 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 $1,311.0 Mil.
Total Current Assets was $796.5 Mil.
Total Current Liabilities was $328.3 Mil.
Retained Earnings was $53.8 Mil.
Pre-Tax Income was 51.293 + 13.997 + 24.213 + 3.008 = $92.5 Mil.
Interest Expense was -6.721 + -6.614 + -6.735 + -6.775 = $-26.8 Mil.
Revenue was 136.518 + 125.172 + 128.807 + 142.023 = $532.5 Mil.
Market Cap (Today) was $990.4 Mil.
Total Liabilities was $1,429.4 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
=(796.538 - 328.284)/1310.967
=0.3572

X2=Retained Earnings/Total Assets
=53.827/1310.967
=0.0411

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(92.511 - -26.845)/1310.967
=0.091

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=990.350/1429.433
=0.6928

X5=Revenue/Total Assets
=532.52/1310.967
=0.4062

The zones of discrimination were as such:

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

GreenSky has a Altman Z-Score of 1.61 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


GreenSky  (NAS:GSKY) 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.


GreenSky Altman Z-Score Related Terms

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


GreenSky Business Description

GreenSky logo
Industry
Technology » Software NAICS : 511210 SIC : 7379
Traded in Other Exchanges
N/A
Address
5565 Glenridge Connector, Suite 700, Atlanta, GA, USA, 30342
GreenSky Inc operates as a technology company. The company offers a proprietary technology infrastructure platform to supports the full transaction lifecycle, including credit application, underwriting, and real-time allocation. Its platform caters to merchants, consumers, and banks.
Executives
Kevin Goldstein officer: EVP - Chief Credit Officer 5565 GLENRIDGE CONNECTOR SUITE 700 ATLANTA 2Q 30342
Kang Andrew officer: EVP and CFO 5565 GLENRIDGE CONNECTOR SUITE 700 ATLANTA GA 30342
Nagy Angela M officer: SVP, Chief Accounting Officer 1155 PERIMETER CENTER WEST ATLANTA GA 30338
Freishtat Gregg Steven director 5860 WINTERTHUR DRIVE ATLANTA GA 30328
Sheft Robert director, 10 percent owner 623 FIFTH AVENUE 26TH FLOOR NEW YORK NY 10022
Babbit Joel M. director 3120 BRECKINRIDGE BLVD. DULUTH GA 30099
Bacci Arthur J director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BACCI ARTHUR J a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Coulter James G other: Former 10% Owner 301 COMMERCE STREET SUITE 3300 FORT WORTH TX 76102
Tpg Growth Ii Advisors, Inc. other: Former 10% Owner 301 COMMERCE STREET SUITE 3300 FORT WORTH TX 76102
Bonderman David other: Former 10% Owner 301 COMMERCE STREET SUITE 3300 FORT WORTH TX 76102
Rickard Lois Elizabeth officer: Chief Human Resources Officer 1230 PEACHTREE ST NE SUITE 1000 ATLANTA GA 30309
Fox Steven E officer: EVP - Chief Legal Officer 229 PEACHTREE ST NE 2700 INTERNATIONAL TOWER ATLANTA GA 303031603
Vastani Minaz officer: Chief Technology Officer 5565 GLENRIDGE CONNECTOR, SUITE 700 ATLANTA GA 30342
Gupta Ritesh officer: EVP, Operations 5565 GLENRIDGE CONNECTOR SUITE 700 ATLANTA GA 30342
Kelly Dennis I officer: President, Patient Solutions 10720 SIKES PL STE 300 CHARLOTTE NC 28277

GreenSky Headlines

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