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Workhorse Group Altman Z-Score

: 2.74 (As of Today)
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Warning Sign:

Altman Z-score of 2.74 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

Workhorse Group has a Altman Z-Score of 2.74, indicating it is in Grey Zones. This implies that Workhorse Group is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

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 Workhorse Group's Altman Z-Score or its related term are showing as below:

NAS:WKHS' s Altman Z-Score Range Over the Past 10 Years
Min: -204.36   Med: -9.52   Max: 17.98
Current: 2.74

-204.36
17.98

During the past 13 years, Workhorse Group's highest Altman Z-Score was 17.98. The lowest was -204.36. And the median was -9.52.


Workhorse Group Altman Z-Score Historical Data

The historical data trend for Workhorse Group'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.

Workhorse Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.86 -11.58 -26.84 -5.86 6.92

Workhorse Group Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 -9.61 2.72 6.92 5.19 6.17

Competitive Comparison

For the Auto Manufacturers subindustry, Workhorse Group'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.

   

Workhorse Group Altman Z-Score Distribution

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

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



Workhorse Group 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.

Workhorse Group'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*0.9291+1.4*-0.6146+3.3*0.1101+0.6*3.5177+1.0*0.0066
=2.74

* 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. 2021:
Total Assets was $444.47 Mil.
Total Current Assets was $430.58 Mil.
Total Current Liabilities was $17.60 Mil.
Retained Earnings was $-273.16 Mil.
Pre-Tax Income was -44.901 + -138.139 + 302.316 + -84.131 = $35.15 Mil.
Interest Expense was -1.978 + -2 + -8.27 + -1.542 = $-13.79 Mil.
Revenue was 1.203 + 0.521 + 0.652 + 0.565 = $2.94 Mil.
Market Cap (Today) was $779.64 Mil.
Total Liabilities was $221.63 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
=(430.581 - 17.604)/444.472
=0.9291

X2=Retained Earnings/Total Assets
=-273.156/444.472
=-0.6146

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(35.145 - -13.79)/444.472
=0.1101

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=779.636/221.631
=3.5177

X5=Revenue/Total Assets
=2.941/444.472
=0.0066

The zones of discrimination were as such:

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

Workhorse Group has a Altman Z-Score of 2.74 indicating it is in Grey Zones.

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


Workhorse Group  (NAS:WKHS) 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.


Workhorse Group Altman Z-Score Related Terms

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


Workhorse Group Business Description

Workhorse Group logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 336111 SIC : 3711
Traded in Other Exchanges
Address
100 Commerce Drive, Loveland, OH, USA, 45140
Workhorse Group Inc is a technology company. It designs, develops, manufactures and sells high-performance, medium-duty trucks with powertrain components under the Workhorse chassis brand. The company's products include trucks comprising powertrain and chassis. Its powertrain products include E-GEN and E-100. E-GEN is an electric drive, transmission-free system, which has a gasoline/propane or compressed natural gas (CNG) engine that functions as an auxiliary generator. E-100, an all-electric, medium-duty truck, is an electric power train. The company generates key revenue from the Automotive Revenue which consists of sales of any of its E-GEN or E-100 platforms.
Executives
Hughes Duane director, officer: CEO and President C/O WORKHORSE GROUP INC. 100 COMMERCE DRIVE LOVELAND OH 45140
Fleming Stephen M. officer: Vice President/General Counsel 49 FRONT STREET SUITE #206 ROCKVILLE CENTRE NY 11570
Furey Anthony Daly officer: Vice President-Finance 48 SOUTH MONTGOMERY AVE BAY SHORE NY 11706
Chess Raymond Joseph director 1084 ANDANTE CT OXFORD MI 48370
Demott Harry director C/O WORKHORSE GROUP INC., 100 COMMERCE DRIVE LOVELAND OH 45140
Ackerson Gregory T. officer: Controller 616 STOKES RESERVE CT. LEBANON OH 45036
Budde Gerald B. director 6146 COURT SIDE PLACE LOVELAND OH 45140
Samuels H. Benjamin director C/O WORKHORSE GROUP INC. 100 COMMERCE DRIVE LOVELAND OH 45140
Willison Robert Harry officer: Chief Operating Officer 100 COMMERCE DRIVE LOVELAND OH 45140
Clark Michael Laurence director 828 PRESIDENT STREET BROOKLYN NY 11215
Schrader Steve officer: Chief Financial Officer 100 COMMERCE DRIVE LOVELAND OH 45140
Marathon Asset Management Lp 10 percent owner ONE BRYANT PARK 38TH FLOOR NEW YORK NY 10036
Mader Pamela S. director 2522 N 600 E CRAIGVILLE IN 46731
Dedo Jacqueline A director 3939 TECHNOLOGY DRIVE MAUMEE OH 43537
Burns Stephen S. other: Consult, formerly CEO and Dir. C/O ADVANCED MECHANICAL PRODUCTS, INC. 4540 ALPINE ROAD BLUE ASH OH 45242

Workhorse Group Headlines

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