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Altice USA Altman Z-Score

: 0.53 (As of Today)
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Warning Sign:

Altman Z-score of 0.52 is in distress zone. This implies bankrupcy possibility in the next two years.

Altice USA has a Altman Z-Score of 0.53, 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 Altice USA's Altman Z-Score or its related term are showing as below:

ATUS' s Altman Z-Score Range Over the Past 10 Years
Min: 0.16   Med: 0.64   Max: 0.8
Current: 0.52

During the past 6 years, Altice USA's highest Altman Z-Score was 0.80. The lowest was 0.16. And the median was 0.64.


Altice USA Altman Z-Score Historical Data

The historical data trend for Altice USA'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.

Altice USA Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only 0.59 0.64 0.77 0.68 0.58

Altice USA Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 0.65 0.66 0.58 0.58 0.55

Competitive Comparison

For the Telecom Services subindustry, Altice USA'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.

   

Altice USA Altman Z-Score Distribution

For the Telecommunication Services industry and Communication Services sector, Altice USA's Altman Z-Score distribution charts can be found below:

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



Altice USA 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.

Altice USA'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*-0.0602+1.4*-0.0197+3.3*0.074+0.6*0.1414+1.0*0.3027
=0.53

* 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 Mar. 2022:
Total Assets was $33,144 Mil.
Total Current Assets was $783 Mil.
Total Current Liabilities was $2,777 Mil.
Retained Earnings was $-652 Mil.
Pre-Tax Income was 284.987 + 276.632 + 375.975 + 262.754 = $1,200 Mil.
Interest Expense was -303.362 + -311.944 + -319.033 + -319.435 = $-1,254 Mil.
Revenue was 2421.897 + 2521.138 + 2574.882 + 2516.008 = $10,034 Mil.
Market Cap (Today) was $4,774 Mil.
Total Liabilities was $33,771 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
=(782.978 - 2777.38)/33144.103
=-0.0602

X2=Retained Earnings/Total Assets
=-652.285/33144.103
=-0.0197

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1200.348 - -1253.774)/33144.103
=0.074

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=4773.875/33770.669
=0.1414

X5=Revenue/Total Assets
=10033.925/33144.103
=0.3027

The zones of discrimination were as such:

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

Altice USA has a Altman Z-Score of 0.53 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.


Altice USA  (NYSE:ATUS) 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.


Altice USA Altman Z-Score Related Terms

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


Altice USA Business Description

Altice USA logo
Industry
Traded in Other Exchanges
Address
1 Court Square West, Long Island City, New York, NY, USA, 11101
Altice Europe acquired privately held U.S. cable company Suddenlink in 2015 and Cablevision in 2016. Suddenlink's networks provided television, internet access, and phone services to roughly 3.5 million U.S. homes and businesses located primarily in smaller markets, with major clusters in Texas, West Virginia, Idaho, Arizona, and Louisiana. Cablevision provided comparable services to about 5.5 million homes and business in the New York City metro area. Altice Europe spun off Altice USA, which includes both the Suddenlink and Cablevision operations, to shareholders in 2018. Altice USA also owns News 12 Networks, which broadcasts local 24-hour news networks in New York, i24News, a news operation focused on the Middle East and Israel, and Cheddar, a news upstart.
Executives
Next Alt S.a.r.l. director, 10 percent owner 5, RUE EUGENE RUPPERT GRAND DUCHY OF LUXEMBOURG N4 L-2453
A4 S.a. director 5, RUE EUGENE RUPPERT GRAND DUCHY OF LUXEMBOURG N4 L-2453
Drahi Patrick director, 10 percent owner WIESTISTRASSE 14 ZERMATT V8 3920
Boubazine Abdelhakim officer: President & COO 1111 STEWART AVENUE BETHPAGE NY 11714
Schmidt Colleen officer: EVP Human Resources 1 COURT SQUARE W LONG ISLAND CITY NY 11101
Olsen Michael officer: EVP, Gen. Counsel & Secy 1 COURT SQUARE W LONG ISLAND CITY NY 11101
Taki Layth officer: Chief Accounting Officer 1 COURT SQUARE WEST LONG ISLAND CITY NY 11101
Grau Michael officer: Chief Financial Officer 1 COURT SQUARE W LONG ISLAND CITY NY 11101
Goei Dexter director, officer: Chief Executive Officer 1111 STEWART AVENUE BETHPAGE NY 11714
Stewart Charles director 1111 STEWART AVENUE BETHPAGE NY 11714
Bakker Gerrit Jan director 15 RUE PIERRE FATIO 6TH FLOOR GENEVA V8 1204
Mullen Mark director 1111 STEWART AVENUE BETHPAGE NY 11714
Okhuijsen Dennis director 1111 STEWART AVENUE BETHPAGE NY 11714
Connolly David other: Former EVP & General Counsel 1111 STEWART AVENUE BETHPAGE NY 11714
Cie Management Ix Ltd 10 percent owner HERITAGE HALL LE MARCHANT STREET ST. PETER PORT Y7 GY14HY

Altice USA Headlines

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