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Value Line Altman Z-Score

: 5.79 (As of Today)
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Good Sign:

Altman Z-score of 5.79 is strong.

Value Line has a Altman Z-Score of 5.79, 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 Value Line's Altman Z-Score or its related term are showing as below:

NAS:VALU' s Altman Z-Score Range Over the Past 10 Years
Min: 2.27   Med: 4.91   Max: 9.65
Current: 5.79

2.27
9.65

During the past 13 years, Value Line's highest Altman Z-Score was 9.65. The lowest was 2.27. And the median was 4.91.


Value Line Altman Z-Score Historical Data

The historical data trend for Value Line'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.

Value Line Annual Data
Trend Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.72 4.23 4.83 5.05 5.47

Value Line Quarterly Data
Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21
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 4.59 5.11 5.47 5.47 5.74

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Value Line'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.

   

Value Line Altman Z-Score Distribution

For the Capital Markets industry and Financial Services sector, Value Line's Altman Z-Score distribution charts can be found below:

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



Value Line 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.

Value Line'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*0.2164+1.4*0.6173+3.3*0.2501+0.6*5.8664+1.0*0.3255
=5.79

* 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 Jul. 2021:
Total Assets was $123.60 Mil.
Total Current Assets was $54.11 Mil.
Total Current Liabilities was $27.36 Mil.
Retained Earnings was $76.30 Mil.
Pre-Tax Income was 7.464 + 9.282 + 7.441 + 6.725 = $30.91 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 10.166 + 9.724 + 10.13 + 10.21 = $40.23 Mil.
Market Cap (Today) was $310.70 Mil.
Total Liabilities was $52.96 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
=(54.108 - 27.364)/123.603
=0.2164

X2=Retained Earnings/Total Assets
=76.296/123.603
=0.6173

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(30.912 - 0)/123.603
=0.2501

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=310.703/52.963
=5.8664

X5=Revenue/Total Assets
=40.23/123.603
=0.3255

The zones of discrimination were as such:

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

Value Line has a Altman Z-Score of 5.79 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.


Value Line  (NAS:VALU) 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.


Value Line Altman Z-Score Related Terms

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


Value Line Business Description

Value Line logo
Industry
Financial Services » Capital Markets NAICS : 523210 SIC : 7323
Traded in Other Exchanges
N/A
Address
551 Fifth Avenue, 3rd Floor, New York, NY, USA, 10176-0001
Value Line Inc is a U.S based company. It produces investment periodicals based on underlying research and making available copyright data, including ranking system and other information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. The company markets under well-known brands including Value Line, the Value Line logo, The Value Line Investment Survey, Smart Research, Smarter Investing and The Most Trusted Name in Investment Research. Its only operating segment being Publishing.
Executives
Fiore Alfred R director 1 ANGORA ROAD WESTPORT CT 06880
Brecher Howard A director, officer: Chairman and CEO VALUE LINE 220 E 42ND ST SUITE 600 NEW YORK NY 10017
Anastasio Stephen director, officer: Vice President and Treasurer 220 E 42ND STREET NEW YORK NY 10017
Muenzer Glenn J. director 357 HARVARD COURT EAST MEADOW NY 11554
Reed William Edward director 12 KNORR STREET NORWALK CT 06854
Bernstein Mary director 220 E 42ND STREET NEW YORK NY 10017
Davis Stephen P director 57 EAST 95TH STREET NEW YORK NY 10128
Sarkany Thomas director, officer: Secretary 220 EAST 42ND STREET 6TH FLOOR NEW YORK NY 10017
Perkins, Robert M. director 220 EAST 42ND STREET, 6TH FLOOR NEW YORK CITY NY 10017
Legon, Ruth O. director 220 EAST 42ND STREET, 6TH FLOOR NEW YORK CITY NY 10017
Appel Mitchell Eric officer: Chief Financial Officer VALUE LINE INC 220 EAST 42ND STREET 6TH FLOOR NEW YORK NY 10017
Arnold Bernhard & Co Inc 10 percent owner 220 EAST 42ND STREET 6TH FLOOR NEW YORK NY 10017
Eakman Janet director 220 E 42ND STREET NEW YORK NY 10017
Shanahan Edward J director 220 EAST 42 STREET NEW YORK NY 10017
Asher Marianne B director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ASHER MARIANNE B 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;}
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