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Motorcar Parts of America Altman Z-Score

: 1.30 (As of Today)
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Warning Sign:

Altman Z-score of 1.24 is in distress zone. This implies bankruptcy possibility in the next two years.

Motorcar Parts of America has a Altman Z-Score of 1.30, 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 Motorcar Parts of America's Altman Z-Score or its related term are showing as below:

MPAA' s Altman Z-Score Range Over the Past 10 Years
Min: 0.37   Med: 2.3   Max: 4.96
Current: 1.24

During the past 13 years, Motorcar Parts of America's highest Altman Z-Score was 4.96. The lowest was 0.37. And the median was 2.30.


Motorcar Parts of America Altman Z-Score Historical Data

The historical data trend for Motorcar Parts of America'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.

Motorcar Parts of America Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.39 1.73 1.30 1.57 1.28

Motorcar Parts of America 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 1.55 1.43 1.39 1.28 -

Competitive Comparison

For the Auto Parts subindustry, Motorcar Parts of America'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.

   

Motorcar Parts of America Altman Z-Score Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Motorcar Parts of America's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Motorcar Parts of America's Altman Z-Score falls into.



Motorcar Parts of America 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.

Motorcar Parts of America'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*0.115+1.4*0.0927+3.3*0.0303+0.6*0.4439+1.0*0.665
=1.30

* 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 $1,000.4 Mil.
Total Current Assets was $528.9 Mil.
Total Current Liabilities was $413.9 Mil.
Retained Earnings was $92.8 Mil.
Pre-Tax Income was 0.414 + 0.68 + 4.727 + 5.934 = $11.8 Mil.
Interest Expense was -6.921 + -4.045 + -3.949 + -3.62 = $-18.5 Mil.
Revenue was 163.985 + 163.916 + 161.81 + 175.548 = $665.3 Mil.
Market Cap (Today) was $304.4 Mil.
Total Liabilities was $685.7 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
=(528.935 - 413.858)/1000.426
=0.115

X2=Retained Earnings/Total Assets
=92.779/1000.426
=0.0927

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(11.755 - -18.535)/1000.426
=0.0303

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=304.365/685.66
=0.4439

X5=Revenue/Total Assets
=665.259/1000.426
=0.665

The zones of discrimination were as such:

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

Motorcar Parts of America has a Altman Z-Score of 1.30 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.


Motorcar Parts of America  (NAS:MPAA) 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.


Motorcar Parts of America Altman Z-Score Related Terms

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Motorcar Parts of America Business Description

Motorcar Parts of America logo
Traded in Other Exchanges
Address
2929 California Street, Torrance, CA, USA, 90503
Motorcar Parts of America Inc is a US-based manufacturer, remanufacturer, and distributor of aftermarket automotive and light truck applications. It manufactures and distributes heavy-duty truck and industrial and agricultural application parts. It produces starter engines, alternators, hub assemblies, bearings, and master cylinders. The company supplies its products to the automotive aftermarket either under its own brands, as part of a private-label service, or to warranty replacement programs of automobile manufacturers. It primarily sells rotating electrical products, wheel hub products, brake master cylinders products in the US, of which a majority of the revenue is derived from the sales of rotating electrical products.
Executives
Warfield Patricia W director 2929 CALIFORNIA STREET TORRANCE CA 90503
Rankin Jamy P. director C/O MOTOR CAR PARTS OF AMERICA, INC. 2929 CALIFORNIA STREET TORRANCE CA 90503
Shah Kamlesh officer: Chief Accounting Officer C/O MOTORCAR PARTS OF AMERICA, INC. 2929 CALIFORNIA STREET TORRANCE CA 90503
Stone Juliet Lynn officer: VP, Gen Counsel and Secretary C/O MOTORCAR PARTS OF AMERICA, INC. 2020 CALIFORNIA STREET TORRANCE CA 90503
Vargo Timothy D director 700 KEOUGH DRIVE PIPERTON TN 38017
Whittaker Barbara L director 1594 HERONWOOD COURT BLOOMFIELD HILLS MI 48302
Ferguson Joseph Edwin director 5103 SOUTH GARTH AVENUE LOS ANGELES CA 90056
Bryan David director 605 STAPP ROAD BOULDER CREEK CA 95006
Schooner Douglas Earl officer: Vice President, Manufacturing 2929 CALIFORNIA STREET TORRANCE CA 90503
Borneo Rudolph J director 50 O'FARRELL STREET SAN FRANCISCO CA 94108
Gay Philip director 6300 CANOGA AVENUE SUITE 1700 WOODLAND HILLS CA 91367
Lee David Sung officer: CFO 2929 CALIFORNIA STREET TORRANCE CA 90503
Selwyn Joffe director, officer: President, CEO & Chairman
Kratz Steven officer: Chief Operating Officer 2929 CALIFORNIA STREET C/O MORTORCAR PARTS OF AMERICA INC TORRANCE CA 90503
Daly Kevin Gerard officer: Chief Accounting Officer 2929 CALIFORNIA STREET TORRANCE CA 90503

Motorcar Parts of America Headlines

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