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VeriSign Altman Z-Score

: -5.09 (As of Today)
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Warning Sign:

Altman Z-score of -5.16 is in distress zone. This implies bankruptcy possibility in the next two years.

VeriSign has a Altman Z-Score of -5.09, 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 VeriSign's Altman Z-Score or its related term are showing as below:

VRSN' s Altman Z-Score Range Over the Past 10 Years
Min: -17.64   Med: -7.51   Max: 277.5
Current: -5.16

During the past 13 years, VeriSign's highest Altman Z-Score was 277.50. The lowest was -17.64. And the median was -7.51.


VeriSign Altman Z-Score Historical Data

The historical data trend for VeriSign'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.

VeriSign 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 -5.25 -6.95 -6.03 -5.30 -3.08

VeriSign 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 -5.05 -5.09 -3.08 -3.68 -5.72

Competitive Comparison

For the Software - Infrastructure subindustry, VeriSign'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.

   

VeriSign Altman Z-Score Distribution

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

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



VeriSign 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.

VeriSign'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*-0.0028+1.4*-8.257+3.3*0.5143+0.6*6.6601+1.0*0.7792
=-5.09

* 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 $1,763 Mil.
Total Current Assets was $1,062 Mil.
Total Current Liabilities was $1,067 Mil.
Retained Earnings was $-14,553 Mil.
Pre-Tax Income was 218.7 + 206.3 + 203.388 + 202.64 = $831 Mil.
Interest Expense was -18.9 + -18.8 + -18.828 + -18.829 = $-75 Mil.
Revenue was 351.9 + 346.9 + 340.308 + 334.242 = $1,373 Mil.
Market Cap (Today) was $21,429 Mil.
Total Liabilities was $3,218 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
=(1062.2 - 1067.2)/1762.5
=-0.0028

X2=Retained Earnings/Total Assets
=-14553/1762.5
=-8.257

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(831.028 - -75.357)/1762.5
=0.5143

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=21428.756/3217.5
=6.6601

X5=Revenue/Total Assets
=1373.35/1762.5
=0.7792

The zones of discrimination were as such:

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

VeriSign has a Altman Z-Score of -5.09 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.


VeriSign  (NAS:VRSN) 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.


VeriSign Altman Z-Score Related Terms

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


VeriSign Business Description

VeriSign logo
Address
12061 Bluemont Way, Reston, VA, USA, 20190
Verisign is the sole authorized registry for several generic top-level domains, including the widely utilized .com and .net top-level domains. The company operates critical Internet infrastructure to support the domain name system, including operating two of the world's 13 root servers that are used to route Internet traffic. In 2018, the firm sold off its Security Services business, signalling a renewed focus on the core registry business.
Executives
Armstrong Courtney D director 12061 BLUEMONT WAY RESTON VA 20190
Buchalter Yehuda Ari director 12061 BLUEMONT WAY RESTON VA 20190
Strubbe Todd B officer: EVP and COO VERISIGN 12061 BLUEMONT WAY RESTON VA 20190
Kilguss George E Iii officer: EVP and CFO C/O VERISIGN, INC. 12061 BLUEMONT WAY RESTON VA 20190
Frist Thomas F Iii director 3100 WEST END AVENUE SUITE 1225 NASHVILLE TN 37203
Indelicarto Thomas C officer: SVP, Gen Counsel & Secretary 12061 BLUEMONT WAY ATTN: GENERAL COUNSEL RESTON VA 20190
Gorelick Jamie S director 12061 BLUEMONT WAY RESTON VA 20190
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET OMAHA NE 68131
Buffett Warren E 10 percent owner 3555 FARNAM ST STE 1440 OMAHA NE 68131
Calys John officer: VP, Interim CFO 12061 BLUEMONT WAY ATTN: OFFICE OF GENERAL COUNSEL RESTON VA 20190
Kane Patrick S officer: Senior Vice President 12061 BLUEMONT WAY ATTN: OFFICE OF GENERAL COUNSEL RESTON VA 20190
Brennan Christine officer: SVP Global HR 21355 RIDGETOP CIRCLE ATTN: GENERAL COUNSEL DULLES VA 20166
Robins Brian G officer: ACTING CHIEF FINANCIAL OFFICER 21355 RIDGETOP CIRCLE ATTN: GENERAL COUNSEL DULLES VA 20166
Cote Kathleen A director 12061 BLUEMONT WAY RESTON VA 20190
Tomlinson Timothy director 12061 BLUEMONT WAY ATTN: GENERAL COUNSEL RESTON VA 20190

VeriSign Headlines

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