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Patterson Altman Z-Score

: 4.55 (As of Today)
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Good Sign:

Altman Z-score of 4.54 is strong.

Patterson has a Altman Z-Score of 4.55, 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 Patterson's Altman Z-Score or its related term are showing as below:

PDCO' s Altman Z-Score Range Over the Past 10 Years
Min: 2.53   Med: 5.63   Max: 13.34
Current: 4.54

During the past 13 years, Patterson's highest Altman Z-Score was 13.34. The lowest was 2.53. And the median was 5.63.


Patterson Altman Z-Score Historical Data

The historical data trend for Patterson'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.

Patterson Annual Data
Trend Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.35 3.45 2.53 4.13 4.53

Patterson Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
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 4.13 4.27 4.10 4.17 4.53

Competitive Comparison

For the Medical Distribution subindustry, Patterson'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.

   

Patterson Altman Z-Score Distribution

For the Medical Distribution industry and Healthcare sector, Patterson's Altman Z-Score distribution charts can be found below:

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



Patterson 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.

Patterson'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*0.242+1.4*0.3362+3.3*0.1045+0.6*1.7972+1.0*2.3706
=4.55

* 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 Apr. 2022:
Total Assets was $2,742 Mil.
Total Current Assets was $1,679 Mil.
Total Current Liabilities was $1,016 Mil.
Retained Earnings was $922 Mil.
Pre-Tax Income was 82.353 + 75.232 + 64.143 + 44.526 = $266 Mil.
Interest Expense was -4.693 + -4.879 + -5.521 + -5.195 = $-20 Mil.
Revenue was 1638.772 + 1596.596 + 1649.161 + 1614.876 = $6,499 Mil.
Market Cap (Today) was $3,053 Mil.
Total Liabilities was $1,699 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
=(1679.022 - 1015.669)/2741.63
=0.242

X2=Retained Earnings/Total Assets
=921.704/2741.63
=0.3362

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(266.254 - -20.288)/2741.63
=0.1045

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=3053.402/1698.995
=1.7972

X5=Revenue/Total Assets
=6499.405/2741.63
=2.3706

The zones of discrimination were as such:

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

Patterson has a Altman Z-Score of 4.55 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.


Patterson  (NAS:PDCO) 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.


Patterson Altman Z-Score Related Terms

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


Patterson Business Description

Patterson logo
Traded in Other Exchanges
Address
1031 Mendota Heights Road, Saint Paul, MN, USA, 55120
Patterson is a leading dental distributor and wholesaler of consumable products and equipment operating through two business segments, Patterson Dental and Patterson Animal Health. The firm offers dental and veterinary practice management products, including office software products, technical, financial, and educational services, primarily to two highly fragmented market segments throughout the U.S. and Canada. The company began as a dental distributor in 1877 and expanded to become a major supplier of animal health products to vets and production companies through an acquisition of Animal Health International in 2015. Patterson also has a presence in the U.K. animal health market.
Executives
Mckoy Philip director 120 BROADWAY SUITE 200 SANTA MONICA CA 90401
Rogan Timothy E officer: President - Dental 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Shirley Eric R officer: President-Patterson Dental 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Zurbay Donald officer: Chief Financial Officer C/O ST. JUDE MEDICAL, INC. ONE ST JUDE MEDICAL DRIVE ST. PAUL MN 55117
Malecha Francis Joseph director 9900 WEST 109TH STREET, SUITE 100 OVERLAND PARK KS 66210
Frohning Andrea L. officer: Chief Human Resources Officer 13515 BALLANTYNE CORPORATE PLACE CHARLOTTE NC 28277
Frenzel Robert director 414 NICOLLET MALL MINNEAPOLIS MN 55401
Goedken Dennis W officer: Interim CFO 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Walchirk Mark S director, officer: President & CEO 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Pohlman Kevin M officer: President - Animal Health 822 7TH STREET, SUITE 740 GREELEY CO 80631
Blanco Alex N director ONE BAXTER PARKWAY DEERFIELD IL 60015
Misiak David G officer: President, Patterson Dental 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Baker Kelly A officer: CHRO 1031 MENDOTA HEIGHTS ST. PAUL MN 55120
Korsh Les B officer: VP, General Counsel 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55110
Adent John Edward officer: CEO - Subsidiary 822 7TH STREET, SUITE 740 GREELEY CO 80631

Patterson Headlines

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