>
GURUFOCUS.COM > STOCK LIST > Healthcare > Healthcare Providers & Services > Healthcare Services Group Inc (NAS:HCSG) > Definitions > Altman Z-Score
Switch to:

Healthcare Services Group Altman Z-Score

: 5.94 (As of Today)
View and export this data going back to 1983. Start your Free Trial

Good Sign:

Altman Z-score of 5.94 is strong.

Healthcare Services Group has a Altman Z-Score of 5.94, 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 Healthcare Services Group's Altman Z-Score or its related term are showing as below:

HCSG' s Altman Z-Score Range Over the Past 10 Years
Min: 3.66   Med: 9.72   Max: 29.55
Current: 5.94

During the past 13 years, Healthcare Services Group's highest Altman Z-Score was 29.55. The lowest was 3.66. And the median was 9.72.


Healthcare Services Group Altman Z-Score Historical Data

The historical data trend for Healthcare Services 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.

Healthcare Services Group 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 12.77 11.44 8.07 7.90 5.68

Healthcare Services Group Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 8.14 7.77 7.01 5.68 6.08

Competitive Comparison

For the Medical Care Facilities subindustry, Healthcare Services 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.

   

Healthcare Services Group Altman Z-Score Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Healthcare Services Group's Altman Z-Score distribution charts can be found below:

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



Healthcare Services 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.

Healthcare Services 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*0.4695+1.4*0.2404+3.3*0.0619+0.6*4.3452+1.0*2.225
=5.94

* 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 Mar. 2022:
Total Assets was $747 Mil.
Total Current Assets was $525 Mil.
Total Current Liabilities was $174 Mil.
Retained Earnings was $179 Mil.
Pre-Tax Income was 15.781 + 1.687 + 12.121 + 15.063 = $45 Mil.
Interest Expense was -0.509 + -0.368 + -0.329 + -0.33 = $-2 Mil.
Revenue was 426.811 + 420.447 + 415.59 + 398.171 = $1,661 Mil.
Market Cap (Today) was $1,303 Mil.
Total Liabilities was $300 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
=(524.827 - 174.304)/746.516
=0.4695

X2=Retained Earnings/Total Assets
=179.427/746.516
=0.2404

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(44.652 - -1.536)/746.516
=0.0619

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1303.034/299.879
=4.3452

X5=Revenue/Total Assets
=1661.019/746.516
=2.225

The zones of discrimination were as such:

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

Healthcare Services Group has a Altman Z-Score of 5.94 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.


Healthcare Services Group  (NAS:HCSG) 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.


Healthcare Services Group Altman Z-Score Related Terms

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


Healthcare Services Group Business Description

Healthcare Services Group logo
Industry
Traded in Other Exchanges
Address
3220 Tillman Drive, Suite 300, Bensalem, PA, USA, 19020
Healthcare Services Group Inc is a provider of housekeeping and facility-management services to the healthcare industry. The company operates two business segments, both contributing roughly equally to the company's revenue: Housekeeping, laundry, linen, and other services; and Dietary department services. Housekeeping includes management of clients' housekeeping departments, cleaning, disinfecting and sanitizing, laundry, and bed linen and uniform services. Dietary consists of food purchasing, meal preparation, and providing dietitian consulting services. Its clients are primarily nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States of America.
Executives
Grant Laura K director 3220 TILLMAN DRIVE BENSALEM PA 19020
Wahl Theodore director, officer: President & CEO 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Frome Robert L director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Moss Robert J director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Briggs John director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Ottaviano Dino D director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Casey Diane S director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Mcfadden John J Jr director 19 PURDUE DRIVE RICHBORO PA 18954
Visconto Jude director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Castagnino Daniela director 3220 TILLMAN DRIVE, SUITE 300 BENSALEM PA 19020
Bundick Jason J officer: General Counsel & Secretary 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Kush Andrew officer: Executive Vice President 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Mcbryan Michael E officer: Executive Vice President 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Shea John Christopher officer: Chief Financial Officer 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Hurlock David officer: Executive Vice President & COO 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020

Healthcare Services 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)