GURUFOCUS.COM » STOCK LIST » USA » NAS » Rivian Automotive Inc (NAS:RIVN) » Definitions » Altman Z-Score
Switch to:

Rivian Automotive Altman Z-Score

: 6.23 (As of Today)
View and export this data going back to 2021. Start your Free Trial

Good Sign:

Altman Z-score of 5.8 is strong.

Rivian Automotive has a Altman Z-Score of 6.23, 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 Rivian Automotive's Altman Z-Score or its related term are showing as below:

RIVN' s Altman Z-Score Range Over the Past 10 Years
Min: 5.8   Med: 14.19   Max: 19.98
Current: 5.8

During the past 3 years, Rivian Automotive's highest Altman Z-Score was 19.98. The lowest was 5.80. And the median was 14.19.


Rivian Automotive Altman Z-Score Historical Data

The historical data trend for Rivian Automotive'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.

Rivian Automotive Annual Data
Trend Dec19 Dec20 Dec21
Altman Z-Score
- - 19.98

Rivian Automotive Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only - - - 19.98 8.40

Competitive Comparison

For the Auto Manufacturers subindustry, Rivian Automotive'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.

   

Rivian Automotive Altman Z-Score Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Rivian Automotive's Altman Z-Score distribution charts can be found below:

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



Rivian Automotive 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.

Rivian Automotive'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*0.7288+1.4*-0.3741+3.3*-0.2733+0.6*11.296+1.0*0.007
=6.23

* 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 Mar. 2022:
Total Assets was $21,297.0 Mil.
Total Current Assets was $17,046.0 Mil.
Total Current Liabilities was $1,524.0 Mil.
Retained Earnings was $-7,967.0 Mil.
Pre-Tax Income was -1593 + -2461 + -1233 + -580 = $-5,867.0 Mil.
Interest Expense was -22 + -22 + -1 + -1 = $-46.0 Mil.
Revenue was 95 + 54 + 1 + 0 = $150.0 Mil.
Market Cap (Today) was $34,306.1 Mil.
Total Liabilities was $3,037.0 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
=(17046 - 1524)/21297
=0.7288

X2=Retained Earnings/Total Assets
=-7967/21297
=-0.3741

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-5867 - -46)/21297
=-0.2733

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=34306.050/3037
=11.296

X5=Revenue/Total Assets
=150/21297
=0.007

The zones of discrimination were as such:

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

Rivian Automotive has a Altman Z-Score of 6.23 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.


Rivian Automotive  (NAS:RIVN) 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.


Rivian Automotive Altman Z-Score Related Terms

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


Rivian Automotive Business Description

Rivian Automotive logo
Traded in Other Exchanges
Address
14600 Myford Road, Irvine, CA, USA, 92606
Rivian Automotive Inc designs, develops and manufactures category-defining electric vehicles and accessories.
Executives
Flatley Jay T director 9885 TOWNE CENTRE DR SAN DIEGO CA 92121
Thomas-graham Pamela director C/O IDENIX PHARMACEUTICALS, INC. 60 HAMPSHIRE STREET CAMBRIDGE MA 02139
Baker Jeff officer: Chief Accounting Officer 1221 BROADWAY OAKLAND CA 94612
Boone Karen director 15 KOCH ROAD SUITE J CORTE MADERA CA 94925
Amazon Com Inc director, 10 percent owner 410 TERRY AVENUE NORTH SEATTLE WA 98109
Ford Motor Co 10 percent owner ONE AMERICAN RD DEARBORN MI 48126
Marcario Rose M director 21101 OXNARD STREET WOODLAND HILLS CA 91367
Mcdonough Claire officer: Chief Financial Officer C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Krawiec Peter director C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Scaringe Robert J director, officer: Chief Executive Officer C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Behl Jiten officer: Chief Growth Officer C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Schwartz Sanford Harold director C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Global Oryx Group Holding Co Ltd 10 percent owner 15 ESPLANADE ST. HELIER Y9 JE1 1RB

Rivian Automotive Headlines

From GuruFocus

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)