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NetApp Altman Z-Score

: 2.79 (As of Today)
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Warning Sign:

Altman Z-score of 2.79 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

NetApp has a Altman Z-Score of 2.79, indicating it is in Grey Zones. This implies that NetApp is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

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

NAS:NTAP' s Altman Z-Score Range Over the Past 10 Years
Min: 1.57   Med: 4.08   Max: 124.66
Current: 2.79

1.57
124.66

During the past 13 years, NetApp's highest Altman Z-Score was 124.66. The lowest was 1.57. And the median was 4.08.


NetApp Altman Z-Score Historical Data

The historical data trend for NetApp'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.

NetApp Annual Data
Trend Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.04 2.78 2.81 2.05 2.48

NetApp Quarterly Data
Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21
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 2.00 2.34 2.48 2.70 2.88

Competitive Comparison

For the Computer Hardware subindustry, NetApp'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.

   

NetApp Altman Z-Score Distribution

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

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



NetApp 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.

NetApp'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*0.2683+1.4*0.021+3.3*0.1381+0.6*2.2136+1.0*0.6559
=2.79

* 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 Oct. 2021:
Total Assets was $9,222 Mil.
Total Current Assets was $5,669 Mil.
Total Current Liabilities was $3,195 Mil.
Retained Earnings was $194 Mil.
Pre-Tax Income was 280 + 237 + 436 + 247 = $1,200 Mil.
Interest Expense was -18 + -18 + -19 + -19 = $-74 Mil.
Revenue was 1566 + 1458 + 1555 + 1470 = $6,049 Mil.
Market Cap (Today) was $18,734 Mil.
Total Liabilities was $8,463 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
=(5669 - 3195)/9222
=0.2683

X2=Retained Earnings/Total Assets
=194/9222
=0.021

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1200 - -74)/9222
=0.1381

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=18733.568/8463
=2.2136

X5=Revenue/Total Assets
=6049/9222
=0.6559

The zones of discrimination were as such:

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

NetApp has a Altman Z-Score of 2.79 indicating it is in Grey Zones.

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


NetApp  (NAS:NTAP) 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.


NetApp Altman Z-Score Related Terms

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


NetApp Business Description

NetApp logo
Industry
Technology » Hardware NAICS : 334112 SIC : 3572
Traded in Other Exchanges
Address
1395 Crossman Avenue, Sunnyvale, CA, USA, 94089
NetApp is a leading provider of enterprise data management and storage solutions. The company's three operating business units are products, software maintenance, and hardware maintenance. NetApp transitioned from a data center storage firm to a company with software data management solutions for multicloud environments. The California-headquartered company sells globally and has approximately 10,000 employees.
Executives
Allen Scott R. officer: SVP, Chief Accounting Officer 11690 N.W. 105TH STREET MIAMI FL 33178
Anderson Brad officer: EVP, SSSBU and CIBU ONE DELL WAY ROUND ROCK TX 78682
Hill Kathryn director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Ahuja Deepak director C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Schenkel Scott F. director C/O EBAY INC. 2025 HAMILTON AVE. SAN JOSE CA 95125
Kerr Deborah director 901 MARQUETTE AVENUE SUITE 3200 MINNEAPOLIS MN 55402
Nevens Thomas Michael director C/O BORLAND SOFTWARE CORPORATION 20450 STEVENS CREEK BLVD, SUITE 800 CUPERTINO CA 95014
Shaheen George T director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SHAHEEN GEORGE T 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;}
Held Gerald director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HELD GERALD 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;}
Cernuda Cesar officer: President 1395 CROSSMAN AVENUE SUNNYVALE CA 94089
Berry Michael J officer: EVP Finance & Operations, CFO C/O INFORMATICA CORPORATION 2100 SEAPORT BOULEVARD REDWOOD CITY CA 94063
Fawcett Matthew K officer: SVP, GC & Secretary 495 EAST JAVA DRIVE SUNNYVALE CA 94089
Kurian George director, officer: CEO C/O NETAPP 495 E. JAVA DRIVE SUNNYVALE CA 94089
Pasek Ronald J officer: EVP Finance & Operations, CFO 101 INNOVATION DRIVE SAN JOSE CA 95134
Richard Henri P officer: EVP, Go To Market FREESCALE SEMICONDUCTOR, INC. 2680 ZANKER RD, SUITE 200 SAN JOSE CA 95134

NetApp Headlines

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