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Patrick Industries Altman Z-Score

: 3.27 (As of Today)
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Good Sign:

Altman Z-score of 3.26 is strong.

Patrick Industries has a Altman Z-Score of 3.27, 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 Patrick Industries's Altman Z-Score or its related term are showing as below:

PATK' s Altman Z-Score Range Over the Past 10 Years
Min: -1.1   Med: 4.74   Max: 7.28
Current: 3.26

During the past 13 years, Patrick Industries's highest Altman Z-Score was 7.28. The lowest was -1.10. And the median was 4.74.


Patrick Industries Altman Z-Score Historical Data

The historical data trend for Patrick Industries'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.

Patrick Industries 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 4.99 3.30 3.26 3.04 3.10

Patrick Industries 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 3.10 3.24 3.10 2.98 3.19

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, Patrick Industries'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.

   

Patrick Industries Altman Z-Score Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Patrick Industries's Altman Z-Score distribution charts can be found below:

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



Patrick Industries 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.

Patrick Industries'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*0.2479+1.4*0.234+3.3*0.1731+0.6*0.6814+1.0*1.6614
=3.27

* 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 $3,025 Mil.
Total Current Assets was $1,223 Mil.
Total Current Liabilities was $473 Mil.
Retained Earnings was $708 Mil.
Pre-Tax Income was 159.225 + 146.869 + 77.997 + 77.837 = $462 Mil.
Interest Expense was -14.802 + -14.886 + -16.695 + -15.436 = $-62 Mil.
Revenue was 1475.693 + 1342.175 + 1147.479 + 1060.177 = $5,026 Mil.
Market Cap (Today) was $1,450 Mil.
Total Liabilities was $2,127 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
=(1223.372 - 473.411)/3024.831
=0.2479

X2=Retained Earnings/Total Assets
=707.812/3024.831
=0.234

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(461.928 - -61.819)/3024.831
=0.1731

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1449.594/2127.241
=0.6814

X5=Revenue/Total Assets
=5025.524/3024.831
=1.6614

The zones of discrimination were as such:

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

Patrick Industries has a Altman Z-Score of 3.27 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.


Patrick Industries  (NAS:PATK) 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.


Patrick Industries Altman Z-Score Related Terms

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


Patrick Industries Business Description

Patrick Industries logo
Traded in Other Exchanges
Address
107 W. Franklin Street, P.O. Box 638, Elkhart, IN, USA, 46515
Patrick Industries Inc makes and sells building products and materials for recreational vehicles and manufactured housing. The company is organized into two segments based on product type: manufacturing and distribution. The manufacturing segment, which generates the majority of revenue, sells laminated and vinyl products that include furniture, shelving, cabinets, bath fixtures, and countertops. The distribution segment sells prefinished wall and ceiling panels, as well as electrical and plumbing products for the RV and manufactured-housing industries. One of the firm's RV customers makes up a significant portion of revenue. Nearly all of Patrick Industries' revenue comes from North America.
Executives
Duthie Joel D officer: Chief Legal Officer/Secretary 107 W. FRANKLIN STREET PO BOX 638 ELKHART IN 46515
Petkovich Jacob R officer: EVP Finance, CFO & Treasurer 107 W. FRANKLIN STREET PO BOX 638 ELKHART IN 46515
Rose James E other: Principal Accounting Officer 107 W. FRANKLIN STREET PO BOX 638 ELKHART IN 46515
Mayes Derrick B director 107 W. FRANKLIN STREET PO BOX 638 ELKHART IN 46515
Klyn Pamela R director 107 W. FRANKLIN STREET PO BOX 638 ELKHART IN 46515
Suggs Denis director 7701 FORSYTH BOULEVARD, SUITE 800 ST. LOUIS MO 63105
Forbes John A director 107 W. FRANKLIN STREET, P.O. BOX 638 ELKHART IN 46515
Welch M Scott director 6 LONGWOOD COURT ELKHART IN 46516
Wells Walter E director 221 US 20 WEST P 0 BOX 151 MIDDLEBURY IN 46540
Ellis Kip B officer: EVP Operations & COO 107 W. FRANKLIN STREET, P.O. BOX 638 ELKHART IN 46515
Boone Joshua A officer: VP - Finance & CFO 107 W. FRANKLIN STREET P.O. BOX 638 ELKHART IN 46515
Rodino Jeff officer: EVP-Sales, Chief Sales Officer 107 W. FRANKLIN STREET P.O.BOX 638 ELKHART IN 46515
Blosser Courtney officer: Chief Human Resource Officer 107 W. FRANKLIN STREET P.O.BOX 638 ELKHART IN 46515
Kitson Michael A director 107 W. FRANKLIN STREET P.O. BOX 638 ELKHART IN 46515
Hassler Paul E director

Patrick Industries Headlines

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