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Syneos Health Altman Z-Score

: 1.74 (As of Today)
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Warning Sign:

Altman Z-score of 1.75 is in distress zone. This implies bankruptcy possibility in the next two years.

Syneos Health has a Altman Z-Score of 1.74, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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

SYNH' s Altman Z-Score Range Over the Past 10 Years
Min: 0.82   Med: 1.61   Max: 3.25
Current: 1.75

During the past 11 years, Syneos Health's highest Altman Z-Score was 3.25. The lowest was 0.82. And the median was 1.61.


Syneos Health Altman Z-Score Historical Data

The historical data trend for Syneos Health'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.

Syneos Health 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 0.96 1.15 1.51 1.54 2.13

Syneos Health 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 1.89 1.86 2.13 1.81 1.77

Competitive Comparison

For the Diagnostics & Research subindustry, Syneos Health'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.

   

Syneos Health Altman Z-Score Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Syneos Health's Altman Z-Score distribution charts can be found below:

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



Syneos Health 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.

Syneos Health'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*0.0212+1.4*0.0031+3.3*0.0537+0.6*1.4588+1.0*0.6595
=1.74

* 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 $8,217 Mil.
Total Current Assets was $1,882 Mil.
Total Current Liabilities was $1,707 Mil.
Retained Earnings was $25 Mil.
Pre-Tax Income was 103.684 + 53.492 + 116.701 + 100.409 = $374 Mil.
Interest Expense was -18.102 + -15.765 + -16.602 + -16.774 = $-67 Mil.
Revenue was 1360.739 + 1336.253 + 1373.384 + 1348.23 = $5,419 Mil.
Market Cap (Today) was $7,130 Mil.
Total Liabilities was $4,888 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
=(1881.871 - 1707.459)/8216.672
=0.0212

X2=Retained Earnings/Total Assets
=25.117/8216.672
=0.0031

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(374.286 - -67.243)/8216.672
=0.0537

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=7130.279/4887.607
=1.4588

X5=Revenue/Total Assets
=5418.606/8216.672
=0.6595

The zones of discrimination were as such:

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

Syneos Health has a Altman Z-Score of 1.74 indicating it is in Distress Zones.

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


Syneos Health  (NAS:SYNH) 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.


Syneos Health Altman Z-Score Related Terms

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


Syneos Health Business Description

Syneos Health logo
Traded in Other Exchanges
Address
1030 Sync Street, Morrisville, NC, USA, 27560-5468
Syneos is a global contract research and outsourced commercialization organization that provides services to pharmaceutical and biotechnology firms. Its clinical solutions segment offers early- to late-stage clinical trial support that ranges from specialized staffing models to strategic partnerships that oversee nearly all aspects of a drug program, while the company's commercialization solutions includes outsourced sales, consulting, public relations, and advertising services.
Executives
Zulueta Alfonso G director LILLY CORPORATE CENTER INDIANAPOLIS IN 46285
Bodem Barbara W. director C/O DENTSPLY SIRONA INC 13320 BALLANTYNE CORPORATE PLACE CHARLOTTE NC 28277
Brooks Michael Lee officer: See remarks C/O SYNEOS HEALTH, INC. 1030 SYNC STREET MORRISVILLE NC 27560
Wilkes David S. director ONE BAXTER PARKWAY DEERFIELD IL 60015
Connaughton Bernadette director C/O VISTERRA, INC. ONE KENDALL SQUARE, #B3301 CAMBRIDGE MA 02139
Klitgaard William E director 210 CARNEGIE CENTER PRINCETON NJ 08540
Meyers Kenneth F director 275 NORTH FIELD DRIVE LAKE FOREST IL 60045
Monaghan Matthew E. director ONE INVACARE WAY ELYRIA OH 44035
Harty Linda S director MEDTRONIC PLC 710 MEDTRONIC PARKWAY NE, LC-150 MINNEAPOLIS MN 55432
Kralowetz Donna Hildebrand officer: SVP, Chief Accounting Officer C/O SYNEOS HEALTH, INC. 1030 SYNC STREET MORRISVILLE NC 27560
Colvin Paul officer: Pres., Clinical Solutions C/O SYNEOS HEALTH, INC. 1030 SYNC STREET MORRISVILLE NC 27560
Parks Robert officer: EVP, Chief Accounting Officer C/O SYNEOS HEALTH, INC. 1030 SYNC STREET MORRISVILLE NC 27560
Olefson Jonathan officer: General Counsel & Corp Secty C/O SYNEOS HEALTH, INC. 1030 SYNC STREET MORRISVILLE NC 27560
Meggs Jason M. officer: Chief Financial Officer C/O SYNEOS HEALTH, INC. 1030 SYNC STREET MORRISVILLE NC 27560
Gpe Vii Gp S.a.r.l. 10 percent owner CO ADVENT INTERNATIONAL 800 BOYLSTON STREET BOSTON MA 02199

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