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Albemarle Altman Z-Score

: 4.20 (As of Today)
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Good Sign:

Altman Z-score of 4.16 is strong.

Albemarle has a Altman Z-Score of 4.20, 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 Albemarle's Altman Z-Score or its related term are showing as below:

ALB' s Altman Z-Score Range Over the Past 10 Years
Min: 1.1   Med: 3.19   Max: 5
Current: 4.16

During the past 13 years, Albemarle's highest Altman Z-Score was 5.00. The lowest was 1.10. And the median was 3.19.


Albemarle Altman Z-Score Historical Data

The historical data trend for Albemarle'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.

Albemarle 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 3.36 2.69 1.89 2.49 3.95

Albemarle 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 3.84 3.96 3.95 3.74 3.33

Competitive Comparison

For the Specialty Chemicals subindustry, Albemarle'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.

   

Albemarle Altman Z-Score Distribution

For the Chemicals industry and Basic Materials sector, Albemarle's Altman Z-Score distribution charts can be found below:

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



Albemarle 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.

Albemarle'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*0.1253+1.4*0.2927+3.3*0.0204+0.6*5.3848+1.0*0.346
=4.20

* 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 $12,520 Mil.
Total Current Assets was $3,350 Mil.
Total Current Liabilities was $1,782 Mil.
Retained Earnings was $3,664 Mil.
Pre-Tax Income was 401.454 + 299.641 + -8.062 + -516.809 = $176 Mil.
Interest Expense was -41.409 + -27.834 + -5.306 + -5.136 = $-80 Mil.
Revenue was 1479.593 + 1127.728 + 894.204 + 830.566 = $4,332 Mil.
Market Cap (Today) was $33,491 Mil.
Total Liabilities was $6,219 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
=(3350.104 - 1781.762)/12520.405
=0.1253

X2=Retained Earnings/Total Assets
=3664.172/12520.405
=0.2927

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(176.224 - -79.685)/12520.405
=0.0204

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=33490.627/6219.43
=5.3848

X5=Revenue/Total Assets
=4332.091/12520.405
=0.346

The zones of discrimination were as such:

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

Albemarle has a Altman Z-Score of 4.20 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.


Albemarle  (NYSE:ALB) 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.


Albemarle Altman Z-Score Related Terms

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


Albemarle Business Description

Albemarle logo
Address
4250 Congress Street, Suite 900, Charlotte, NC, USA, 28209
Albemarle is the world's largest lithium producer. Our outlook for robust lithium demand is predicated upon increased demand for electric vehicle batteries. Albemarle produces lithium from its salt brine deposits in Chile and the U.S. and its hard rock joint venture mines in Australia. Albemarle is also a global leader in the production of bromine, used in flame retardants. The company is also a major producer of oil refining catalysts.
Executives
Cramer Ralf Hans director MIERENDORSFSTRASSE 26 BENSHEIM 2M 64625
Anderson Melissa H. officer: SVP, Chief HR Officer ALBEMARLE CORPORATION 4250 CONGRESS ST. SUITE 900 CHARLOTTE NC 28209
Barichivich John Clarence Iii officer: VP, Controller & CAO 4250 CONGRESS ST. SUITE 900 CHARLOTTE NC 28209
Minor Glenda J director 17000 ROTUNDA DRIVE DEARBORN MI 48120
Van Deursen Holly director 21211 NORDHOFF STREET CHATSWORTH CA 91311
Johnson Netha N. officer: President, Bromine Specialties 3489 CRESTMOOR DRIVE WOODBURY MN 55125
Crawford Raphael Goszcz officer: President, Catalysts 4311 GREENBRIAR HILLS PLANTATION RD CHARLOTTE NC 28277
Marlow Deeanne J officer: SVP, Chief HR Officer 4250 CONGRESS STREET SUITE 900 CHARLOTTE NC 28209
Norris Eric officer: President, Lithium 1519 AUDUBON ROAD CHARLOTTE NC 28211
Ryan David Terrence officer: VP, Corp. Strategy & IR 8904 HIGHFIELD ROAD RICHMOND VA 23229
Maine Douglas L director ALBEMARLE CORP 451 FLORIDA ST BATON ROUGE LA 70801
Hernandez William H director 5500 WAYZATA BLVD. SUITE 800 GOLDEN VALLEY MN 55416
Wolff Alejandro Daniel director ALBEMARLE CORP. 451 FLORIDA ST BATON ROUGE LA 70801
Masters J Kent director ALBEMARLE CORP. 451 FLORIDA ST BATON ROUGE LA 70801
Brlas Laurie director C/O ALBEMARLE CORPORATION 4250 CONGRESS ST STE 900 CHARLOTTE NC 28209

Albemarle Headlines

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