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Nutanix (NAS:NTNX) Altman Z-Score

: -1.01 (As of Today)
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Warning Sign:

Altman Z-score of -1.02 is in distress zone. This implies bankruptcy possibility in the next two years.

Nutanix has a Altman Z-Score of -1.01, 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 Nutanix's Altman Z-Score or its related term are showing as below:

NTNX' s Altman Z-Score Range Over the Past 10 Years
Min: -2.01   Med: -0.45   Max: 4.51
Current: -1.02

During the past 10 years, Nutanix's highest Altman Z-Score was 4.51. The lowest was -2.01. And the median was -0.45.


Nutanix Altman Z-Score Historical Data

The historical data trend for Nutanix'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.

Nutanix Annual Data
Trend Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.81 0.33 -1.25 -1.23 -2.01

Nutanix Quarterly Data
Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22
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 -1.57 -1.69 -1.75 -2.01 -1.04

Competitive Comparison

For the Software - Infrastructure subindustry, Nutanix'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.

   

Nutanix Altman Z-Score Distribution

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

* The bar in red indicates where Nutanix's Altman Z-Score falls in comparison to its industry or sector. The grey bar indicates the Altman Z-Score's extreme value range as defined by GuruFocus.



Nutanix 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.

Nutanix'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*0.2224+1.4*-1.8949+3.3*-0.1673+0.6*2.0563+1.0*0.6939
=-1.01

* 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 Oct. 2022:
Total Assets was $2,357 Mil.
Total Current Assets was $1,672 Mil.
Total Current Liabilities was $1,148 Mil.
Retained Earnings was $-4,467 Mil.
Pre-Tax Income was -93.673 + -144.693 + -108.024 + -109.752 = $-456 Mil.
Interest Expense was -15.73 + -15.525 + -15.325 + -15.126 = $-62 Mil.
Revenue was 433.609 + 385.54 + 403.658 + 413.081 = $1,636 Mil.
Market Cap (Today) was $6,474 Mil.
Total Liabilities was $3,148 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
=(1672.095 - 1147.799)/2357.422
=0.2224

X2=Retained Earnings/Total Assets
=-4467.142/2357.422
=-1.8949

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-456.142 - -61.706)/2357.422
=-0.1673

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=6474.160/3148.471
=2.0563

X5=Revenue/Total Assets
=1635.888/2357.422
=0.6939

The zones of discrimination were as such:

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

Nutanix has a Altman Z-Score of -1.01 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.


Nutanix  (NAS:NTNX) 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.


Nutanix Altman Z-Score Related Terms

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


Nutanix (NAS:NTNX) Business Description

Nutanix logo
Traded in Other Exchanges
Address
1740 Technology Drive, Suite 150, San Jose, CA, USA, 95110
Nutanix Inc provides native hybrid cloud capabilities for businesses. The company offers Enterprise Cloud Platform to businesses for various uses such as web-scale engineering and consumer-grade design, virtualization, and storage into a resilient, and software-defined solution. Geographically, it derives a majority of revenue from the United States and also has a presence in Europe, the Middle East, Asia Pacific, Africa, and other regions.
Executives
Rukmini Sivaraman officer: Chief Financial Officer 1740 TECHNOLOGY DR., SUITE 150, SAN JOSE CA 95110
Teresa Gayle Sheppard director C/O ENVISTA HOLDINGS CORPORATION, 200 S. KRAEMER BLVD., BLDG. E, BREA CA 92821
Susan L Bostrom director
Craig Conway director SALESFORCE TOWER, 415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 94105
Brian Mark Stevens director 25 HOOPER HILL RD., NEW BOSTON NH 03070
Virginia Gambale director C/O JETBLUE AIRWAYS CORP., 27-01 QUEENS PLAZA NORTH, LONG ISLAND CITY NY 11101
Rajiv Ramaswami director, officer: President and CEO 5300 CALIFORNIA AVENUE, IRVINE CA 92617
Kaddaras Christopher Nicholas Jr officer: Chief Revenue Officer C/O NUTANIX, INC., 1740 TECHNOLOGY DR., STE 150, SAN JOSE CA 95110
Tyler Wall officer: Chief Legal Officer CHORDIANT SOFTWARE, INC., 20400 STEVENS CREEK BLVD., STE. 400, CUPERTINO CA 94014
Aaron Boynton officer: Chief Accounting Officer C/O NUTANIX, INC., 1740 TECHNOLOGY AVE., SUITE 150, SAN JOSE CA 95110
Tarkan Maner officer: Chief Commercial Officer C/O NUTANIX, INC., 1740 TECHNOLOGY AVE., SUITE 150, SAN JOSE CA 95110
David Humphrey director C/O BAIN CAPITAL PARTNERS, LLC, JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116
De Groen Max Pieter director 200 CLARENDON STREET, BOSTON MA 02116
Sohaib Abbasi director 100 EAST DAVIE STREET, RALEIGH NC 27601
Louis J Attanasio officer: Chief Revenue Officer 1740 TECHNOLOGY AVE., SUITE 150, SAN JOSE CA 95110

Nutanix (NAS:NTNX) Headlines

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