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Transphorm Altman Z-Score

: 5.76 (As of Today)
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Good Sign:

Altman Z-score of 6.92 is strong.

Transphorm has a Altman Z-Score of 5.76, 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 Transphorm's Altman Z-Score or its related term are showing as below:

TGAN' s Altman Z-Score Range Over the Past 10 Years
Min: -10.33   Med: -0.77   Max: 8.79
Current: 6.92

During the past 3 years, Transphorm's highest Altman Z-Score was 8.79. The lowest was -10.33. And the median was -0.77.


Transphorm Altman Z-Score Historical Data

The historical data trend for Transphorm'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.

Transphorm Annual Data
Trend Dec19 Dec20 Mar22
Altman Z-Score
- -10.33 8.79

Transphorm Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 -13.04 -20.57 -15.53 9.94 8.79

Competitive Comparison

For the Semiconductor Equipment & Materials subindustry, Transphorm'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.

   

Transphorm Altman Z-Score Distribution

For the Semiconductors industry and Technology sector, Transphorm's Altman Z-Score distribution charts can be found below:

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



Transphorm 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.

Transphorm'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*0.8122+1.4*-3.6722+3.3*-0.1941+0.6*16.7947+1.0*0.4944
=5.76

* 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 $48.65 Mil.
Total Current Assets was $44.79 Mil.
Total Current Liabilities was $5.29 Mil.
Retained Earnings was $-178.64 Mil.
Pre-Tax Income was -4.999 + -4.164 + 5.98 + -7.052 = $-10.24 Mil.
Interest Expense was -0.181 + -0.187 + -0.22 + -0.204 = $-0.79 Mil.
Revenue was 4.927 + 4.604 + 11.303 + 3.216 = $24.05 Mil.
Market Cap (Today) was $290.30 Mil.
Total Liabilities was $17.29 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
=(44.794 - 5.285)/48.646
=0.8122

X2=Retained Earnings/Total Assets
=-178.638/48.646
=-3.6722

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-10.235 - -0.792)/48.646
=-0.1941

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=290.297/17.285
=16.7947

X5=Revenue/Total Assets
=24.05/48.646
=0.4944

The zones of discrimination were as such:

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

Transphorm has a Altman Z-Score of 5.76 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.


Transphorm  (NAS:TGAN) 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.


Transphorm Altman Z-Score Related Terms

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


Transphorm Business Description

Transphorm logo
Traded in Other Exchanges
N/A
Address
75 Castilian Drive, Goleta, CA, USA, 93117
Transphorm Inc is a semiconductor company. It designs and manufactures GaN semiconductors for high-voltage power conversion applications. It produces JEDEC and AEC-Q101 qualified GaN FETs. Its vertically integrated device business model allows for innovation at every development stage: design, fabrication, device, and application support.
Executives
Kkr Group Co. Inc. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Moreland Cynthia J director 215 MOFFETT PARK DRIVE SUNNYVALE CA 94089
Smales Kelly director 75 CASTILIAN DRIVE GOLETA CA 93117
Mcfarland Katharina G. director 4803 STONECROFT BOULEVARD CHANTILLY VA 20151
Humphreys Michael Julian director 75 CASTILIAN DRIVE GOLETA CA 93117
Parikh Primit officer: Chief Operating Officer 75 CASTILIAN DRIVE GOLETA CA 93117
Kravis Henry R 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Roberts George R 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 2800 SAND HILL ROAD MENLO PARK CA 94025
Kkr & Co. Inc. 10 percent owner 30 HUDSON YARDS NEW YORK NY 10001
Kkr Phorm Investors Gp Llc 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Kkr Phorm Investors L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Wingtech Technology Co. Ltd. 10 percent owner 4F-6F, BUILDING 4 OF JUXIN YUAN, NO. 188 PINGFU ROAD, XUHUI DISTRICT SHANGHAI F4 200231
Nexperia B.v. 10 percent owner JONKERBOSPLEIN 52 AB NIJMEGEN P7 6534
Yatagawa Eiji director 75 CASTILIAN DRIVE GOLETA CA 93117
Mcaulay Cameron officer: Chief Financial Officer 75 CASTILIAN DRIVE GOLETA CA 93117

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