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Resources Connection Altman Z-Score

: 4.83 (As of Today)
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Good Sign:

Altman Z-score of 4.83 is strong.

Resources Connection has a Altman Z-Score of 4.83, 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 Resources Connection's Altman Z-Score or its related term are showing as below:

NAS:RGP' s Altman Z-Score Range Over the Past 10 Years
Min: 1.99   Med: 8.16   Max: 23.03
Current: 4.83

1.99
23.03

During the past 13 years, Resources Connection's highest Altman Z-Score was 23.03. The lowest was 1.99. And the median was 8.16.


Resources Connection Altman Z-Score Historical Data

The historical data trend for Resources Connection'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.

Resources Connection Annual Data
Trend May12 May13 May14 May15 May16 May17 May18 May19 May20 May21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.28 5.04 5.51 3.76 4.17

Resources Connection Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 3.86 3.79 3.90 4.17 4.69

Competitive Comparison

For the Consulting Services subindustry, Resources Connection'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.

   

Resources Connection Altman Z-Score Distribution

For the Business Services industry and Industrials sector, Resources Connection's Altman Z-Score distribution charts can be found below:

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



Resources Connection 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.

Resources Connection'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*0.2679+1.4*0.7295+3.3*0.0736+0.6*3.2482+1.0*1.2928
=4.83

* 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 Aug. 2021:
Total Assets was $514.6 Mil.
Total Current Assets was $233.3 Mil.
Total Current Liabilities was $95.4 Mil.
Retained Earnings was $375.4 Mil.
Pre-Tax Income was 18.109 + 15.433 + 1.747 + 1.264 = $36.6 Mil.
Interest Expense was -0.215 + -0.284 + -0.361 + -0.46 = $-1.3 Mil.
Revenue was 183.14 + 172.317 + 156.631 + 153.222 = $665.3 Mil.
Market Cap (Today) was $564.5 Mil.
Total Liabilities was $173.8 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
=(233.252 - 95.38)/514.635
=0.2679

X2=Retained Earnings/Total Assets
=375.426/514.635
=0.7295

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(36.553 - -1.32)/514.635
=0.0736

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=564.506/173.79
=3.2482

X5=Revenue/Total Assets
=665.31/514.635
=1.2928

The zones of discrimination were as such:

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

Resources Connection has a Altman Z-Score of 4.83 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.


Resources Connection  (NAS:RGP) 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.


Resources Connection Altman Z-Score Related Terms

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


Resources Connection Business Description

Resources Connection logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
17101 Armstrong Avenue, Suite 100, Irvine, CA, USA, 92614
Resources Connection Inc provides consulting and business initiative support services primarily through its operative subsidiary, Resources Global Professionals. The company offers transformation and improvement, financial reporting and analysis, strategy development, and program and project management services and support. Its clients operate in the accounting, finance, corporate governance, risk and compliance management, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, and legal and regulatory sectors.
Executives
Duchene Kate W director, officer: President & CEO C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Ryu Jennifer Y officer: CFO 17101 ARMSTRONG AVENUE IRVINE CA 92614
Pisano A Robert director C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Von Maltzan Marco director 17101 ARMSTRONG AVE #100 RGP IRVINE CA 92614
Crawford Susan J director 17101 ARMSTRONG AVE IRVINE CA 92614
Shih Anne director 17101 ARMSTRONG AVENUE IRVINE CA 92614
Wargotz Michael H director AXCESS WORLDWIDE 515 MADISON AVE., 15TH FLOOR NEW YORK NY 10022
Cherbak Anthony director 695 TOWN CENTER DRIVE SUITE 600 COSTA MESA CA 92626
Kistinger Robert F director 17101 ARMSTRONG AVE IRVINE CA 92614
Sykes Jolene director 695 TOWN CENTER DRIVE SUITE 606 COSTA MESA CA 92626
Dimick Neil F director BUILDING 4, TRIDENT PLACE MOSQUITO WAY HATFIELD, HERTFORDSHIRE X0 AL10 9UL
Brackney Timothy L officer: President and COO 12 ANDERSON WAY MENLO PARK CA 94025
Bower John D officer: Chief Accounting Officer C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Murray Donald B director RESOURCES CONNECTION 695 TOWN CTR DR STE 600 COSTA MESA CA 92626
Mueller Herbert M officer: CFO & EVP PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MUELLER HERBERT M 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;}

Resources Connection Headlines

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