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Global Water Resources (Global Water Resources) Altman Z-Score : 0.88 (As of May. 06, 2024)


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What is Global Water Resources Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of 0.88 is in distress zone. This implies bankruptcy possibility in the next two years.

Global Water Resources has a Altman Z-Score of 0.88, 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 Global Water Resources's Altman Z-Score or its related term are showing as below:

GWRS' s Altman Z-Score Range Over the Past 10 Years
Min: 0.75   Med: 0.89   Max: 1.14
Current: 0.88

During the past 10 years, Global Water Resources's highest Altman Z-Score was 1.14. The lowest was 0.75. And the median was 0.89.


Global Water Resources Altman Z-Score Historical Data

The historical data trend for Global Water Resources'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.

Global Water Resources Altman Z-Score Chart

Global Water Resources Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.96 1.04 1.14 0.93 0.89

Global Water Resources Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-Score Get a 7-Day Free Trial 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 0.93 0.84 0.86 0.74 0.89

Competitive Comparison of Global Water Resources's Altman Z-Score

For the Utilities - Regulated Water subindustry, Global Water Resources'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.


Global Water Resources's Altman Z-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Global Water Resources's Altman Z-Score distribution charts can be found below:

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



Global Water Resources 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.

Global Water Resources'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*-0.0069+1.4*0.0022+3.3*0.0436+0.6*0.9872+1.0*0.1469
=0.88

* 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 Dec. 2023:
Total Assets was $361.10 Mil.
Total Current Assets was $11.72 Mil.
Total Current Liabilities was $14.22 Mil.
Retained Earnings was $0.80 Mil.
Pre-Tax Income was 1.531 + 3.522 + 2.47 + 3.331 = $10.85 Mil.
Interest Expense was -1.173 + -1.26 + -1.281 + -1.168 = $-4.88 Mil.
Revenue was 12.368 + 14.532 + 13 + 13.128 = $53.03 Mil.
Market Cap (Today) was $308.49 Mil.
Total Liabilities was $312.48 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
=(11.724 - 14.217)/361.095
=-0.0069

X2=Retained Earnings/Total Assets
=0.797/361.095
=0.0022

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(10.854 - -4.882)/361.095
=0.0436

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=308.485/312.475
=0.9872

X5=Revenue/Total Assets
=53.028/361.095
=0.1469

The zones of discrimination were as such:

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

Global Water Resources has a Altman Z-Score of 0.88 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.


Global Water Resources  (NAS:GWRS) 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.


Global Water Resources Altman Z-Score Related Terms

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Global Water Resources (Global Water Resources) Business Description

Traded in Other Exchanges
N/A
Address
21410 N. 19th Avenue, Suite 220, Phoenix, AZ, USA, 85027
Global Water Resources Inc operates as a water resource management company that owns, operates, and manages water, wastewater, and recycled water utilities in strategically located communities, principally in metropolitan Phoenix, Arizona. It operate within the State of Arizona.
Executives
Andrew M. Cohn director C/O GARY GOTTO, KELLER ROHRBACK LLP, 3101 NORTH CENTRAL AVENUE, #1400, PHOENIX AZ 85012
Suzanne Michelle Kitts officer: Vice President and Controller C/O GLOBAL WATER RESOURCES, INC., 21410 N 19TH AVE, SUITE 220, PHOENIX AZ 85027
William S Levine director, 10 percent owner GLOBAL WATER RESOURCES, INC., 21410 N 19TH AVENUE #220, PHOENIX AZ 85027
Jonathan L Levine director 21410 N. 19TH AVENUE, SUITE 220, PHOENIX AZ 85027
Debra Coy director 2401 EAST KATELLA AVENUE, SUITE 300, ANAHEIM CA 92806
Christopher D Krygier officer: Chief Strategy Officer C/O GLOBAL WATER RESOURCES, INC., 21410 N. 19TH AVE, SUITE 220, PHOENIX AZ 85027
Brett Huckelbridge director C/O GLOBAL WATER RESOURCES, INC., 21410 N 19TH AVENUE, SUITE 220, PHOENIX AZ 85027
John Carroll Lenderking officer: VP, Water Resources C/O GLOBAL WATER RESOURCES, INC., 21410 N 19TH AVENUE, SUITE 220, PHOENIX AZ 85027
Heather M Krupa officer: Vice President and Controller C/O GLOBAL WATER RESOURCES, INC.,, 21410 N. 19TH AVENUE, SUITE 220, PHOENIX AZ 85027
Cindy M Bowers director 21410 N 19TH AVENUE #220, PHOENIX AZ 85027
David Rousseau director C/O GLOBAL WATER RESOURCES, 21410 N 19TH AVENUE, SUITE 220, PHOENIX AZ 85027
Jason Thuneman officer: Vice President C/O GLOBAL WATER RESOURCES, INC., 21410 N 19TH AVENUE, SUITE 220, PHOENIX AZ 85027
Trevor T Hill director, 10 percent owner 21410 N 19TH AVENUE #220, PHOENIX AZ 85027
Michael J Liebman officer: See Remarks C/O GLOBAL WATER RESOURCES, INC., 21410 N 19TH AVENUE, SUITE 220, PHOENIX AZ 85027
Jonathan C. Corwin officer: Vice President C/O GLOBAL WATER RESOURCES, INC., 21410 N 19TH AVENUE, SUITE 220, PHOENIX AZ 85027