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New Fortress Energy (New Fortress Energy) Altman Z-Score : 0.90 (As of Apr. 24, 2024)


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What is New Fortress Energy 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 0.9 is in distress zone. This implies bankruptcy possibility in the next two years.

New Fortress Energy has a Altman Z-Score of 0.90, 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 New Fortress Energy's Altman Z-Score or its related term are showing as below:

NFE' s Altman Z-Score Range Over the Past 10 Years
Min: -0.9   Med: 0.97   Max: 3.73
Current: 0.9

During the past 8 years, New Fortress Energy's highest Altman Z-Score was 3.73. The lowest was -0.90. And the median was 0.97.


New Fortress Energy Altman Z-Score Historical Data

The historical data trend for New Fortress Energy'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.

New Fortress Energy Altman Z-Score Chart

New Fortress Energy Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial -0.05 3.73 0.90 1.29 1.04

New Fortress Energy 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 1.29 0.95 0.83 0.88 1.04

Competitive Comparison of New Fortress Energy's Altman Z-Score

For the Utilities - Regulated Gas subindustry, New Fortress Energy'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.


New Fortress Energy's Altman Z-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, New Fortress Energy's Altman Z-Score distribution charts can be found below:

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



New Fortress Energy 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.

New Fortress Energy'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*-0.0692+1.4*0.0503+3.3*0.088+0.6*0.6487+1.0*0.2298
=0.90

* 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 $10,501 Mil.
Total Current Assets was $980 Mil.
Total Current Liabilities was $1,706 Mil.
Retained Earnings was $528 Mil.
Pre-Tax Income was 260.909 + 87.532 + 135.422 + 180.526 = $664 Mil.
Interest Expense was -69.902 + -60.045 + -61.246 + -68.081 = $-259 Mil.
Revenue was 758.358 + 514.462 + 561.345 + 579.131 = $2,413 Mil.
Market Cap (Today) was $5,659 Mil.
Total Liabilities was $8,723 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
=(979.973 - 1706.288)/10501.245
=-0.0692

X2=Retained Earnings/Total Assets
=527.986/10501.245
=0.0503

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(664.389 - -259.274)/10501.245
=0.088

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=5659.154/8723.376
=0.6487

X5=Revenue/Total Assets
=2413.296/10501.245
=0.2298

The zones of discrimination were as such:

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

New Fortress Energy has a Altman Z-Score of 0.90 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.


New Fortress Energy  (NAS:NFE) 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.


New Fortress Energy Altman Z-Score Related Terms

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New Fortress Energy (New Fortress Energy) Business Description

Traded in Other Exchanges
Address
111 W. 19th Street, 8th Floor, New York, NY, USA, 10011
New Fortress Energy is an integrated gas-to-power company. Its business model spans the entire production and delivery chain from natural gas procurement and liquefaction to logistics, shipping, terminals, and conversion or development of a natural gas-fired generation. It has invested in floating, liquefied natural gas vessels to both lower the cost of acquiring gas while securing a long-term supply for its terminals. Its segments include terminals and infrastructure, or T&I, and ships.
Executives
Desmond Iain Catterall director C/O NEW FORTRESS ENERGY HOLDINGS, 111 WEST 19TH STREET 8TH FLOOR, NEW YORK NY 10011
Timothy W. Jay director 111 W 19TH STREET, 8TH FLOOR, NEW YORK NY 10011
Matthew Wilkinson director C/O NEW FORTRESS ENERGY HOLDINGS, 111 WEST 19TH STREET 8TH FLOOR, NEW YORK NY 10011
C. William Griffin director C/O NEW FORTRESS ENERGY HOLDINGS, 111 WEST 19TH STREET 8TH FLOOR, NEW YORK NY 10011
Katherine Wanner director C/O NEW FORTRESS ENERGY HOLDINGS, 111 WEST 19TH STREET 8TH FLOOR, NEW YORK NY 10011
Nfe Smrs Holdings Llc 10 percent owner 10 STATION PLACE, P.O. BOX 233, NORFOLK CT 06058
Yunyoung Shin officer: Chief Accounting Officer C/O NEW FORTRESS ENERGY, 111 WEST 19TH STREET, 8TH FLOOR, NEW YORK NY 10011
John J Mack director C/O MORGAN STANLEY 1585 BROADWAY, NEW YORK NY 10036
Lynn Edens 10 percent owner C/O FORTRESS INVESTMENT GROUP LLC, 1345 AVENUE OF THE AMERICAS, 46TH FLOOR, NEW YORK NY 10105
Edens Family Holdings Llc 10 percent owner C/O FORTRESS INVESTMENT GROUP LLC, 1345 AVENUE OF THE AMERICAS, 46TH FLOOR, NEW YORK NY 10105
Alexander Thomson 10 percent owner 10 STATION PLACE, P.O. BOX 233, NORFOLK CT 06058
Jonathan Rotolo 10 percent owner 10 STATION PLACE, P.O. BOX 233, NORFOLK CT 06058
Great Mountain Partners Llc 10 percent owner 157 CHURCH STREET, 20TH FLOOR, NEW HAVEN CT 06510
David J Grain director C/O MOTIENT CORPORATION, 300 KNIGHTSBRIDGE PARKWAY, LINCOLNSHIRE IL 60069
Wesley R Edens director, officer: Chief Executive Officer 1345 AVENUE OF THE AMERICAS, 45TH FLOOR, NEW YORK NY 10105