Royal Arc ElectrodesNSE:ROYALARC 19 Altman Z-Score is 12.19 as of Jul. 09, 2026, which is 14% below its 10-year median of 14.17. GuruFocus rates NSE:ROYALARC with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 3,006 Industrial Products companies, Royal Arc Electrodes ranks better than 90.39% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 12.19 is strong.
Royal Arc Electrodes has a Altman Z-Score of 12.19, 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 Royal Arc Electrodes's Altman Z-Score or its related term are showing as below:
NSE:ROYALARC'
s Altman Z-Score Range Over the Past 10 Years
Min: 12.19 Med: 14.17 Max: 14.62
Current: 12.19
During the past 5 years, Royal Arc Electrodes's highest Altman Z-Score was 14.62. The lowest was 12.19. And the median was 14.17.
Royal Arc Electrodes (NSE:ROYALARC) 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.
Altman Z-Score does not apply to financial companies.
Royal Arc Electrodes Altman Z-Score Related Terms
Royal Arc Electrodes Altman Z-Score Historical Data
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The historical data trend for Royal Arc Electrodes'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.
NSE:ROYALARC vs VRT, BE: Altman Z-Score Comparison
For the Electrical Equipment & Parts subindustry, Royal Arc Electrodes'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.
Royal Arc Electrodes Altman Z-Score vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Royal Arc Electrodes's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Royal Arc Electrodes's Altman Z-Score falls into.
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.
Royal Arc Electrodes'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
*
0.5483
+
1.4
*
0
+
3.3
*
0.1519
+
0.6
*
16.2685
+
1.0
*
1.2722
=
12.19
* 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.
Royal Arc Electrodes (NSE:ROYALARC) has a Altman Z-Score of 12.19 as of Jul. 09, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Royal Arc Electrodes and its competitors. This is 14% below median its historical median of 14.17. Over the past decade, Royal Arc Electrodes' Altman Z-Score has ranged from 12.19 to 14.62. According to the industry distribution chart, Royal Arc Electrodes ranks #289 out of 3006 companies in the Industrial Products industry, placing it in the top 9.6%.
Is Royal Arc Electrodes' Altman Z-Score too high?
Royal Arc Electrodes' current Altman Z-Score of 12.19 is 14% below median its 10-year median of 14.17. Over the past 10 years, this metric has ranged from a low of 12.19 to a high of 14.62. The Industrial Products industry median Altman Z-Score is 3.38. Royal Arc Electrodes' value of 12.19 is 260.7% above this industry median. Based on the distribution chart, Royal Arc Electrodes ranks #289 out of 3006 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Royal Arc Electrodes has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Royal Arc Electrodes' Altman Z-Score compare to VRT and BE?
According to the Industrial Products industry distribution chart, Royal Arc Electrodes ranks #289 out of 3006 companies for Altman Z-Score. This places Royal Arc Electrodes in the top 10% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.38. Royal Arc Electrodes' value of 12.19 is 260.7% above this benchmark. Historically, Royal Arc Electrodes' own Altman Z-Score has ranged from 12.19 to 14.62 over the past decade. While the company's 10-year median is 14.17 vs. the industry median of 3.38, Royal Arc Electrodes has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for an Industrial Products company?
The median Altman Z-Score among Industrial Products companies is 3.38, based on 3,006 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Arc Electrodes's current Altman Z-Score of 12.19 is 260.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Royal Arc Electrodes and its competitors. For the Industrial Products industry, the median Altman Z-Score is 3.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Arc Electrodes's current Altman Z-Score is 12.19, which is 14% below median its own 10-year median of 14.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Arc Electrodes stock overvalued right now?
Royal Arc Electrodes (NSE:ROYALARC) has a current Altman Z-Score of 12.19. The current Altman Z-Score is 12.19, which is 14% below median its 10-year median of 14.17 and 260.7% above the Industrial Products industry median of 3.38. Royal Arc Electrodes' overall GF Score™ is 19/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Royal Arc Electrodes (NSE:ROYALARC), the current Altman Z-Score is 12.19 as of Jul. 09, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Royal Arc Electrodes Ltd is engaged in the business of manufacturing welding consumables such as welding electrodes, flux cored wire, MIG/TIG wires, which finds its application in the welding of tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, etc. which are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, PEB sectors, etc. Further, the Company is also engaged in the business of trading ancillary/incidental products like wheels, electro slag, welding flux cored wire, electro slag strip cladding, saw flux, and TIG /MIG wires. It manufactures its products from copper coated wire, MS Strips, MS wire, SS strip, SS wire, nickel wire, ferro alloy powder, etc.
19GF Score
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