>
Switch to:

Youdao Altman Z-Score

: 0.41 (As of Today)
View and export this data going back to 2019. Start your Free Trial

Warning Sign:

Altman Z-score of 0.46 is in distress zone. This implies bankrupcy possibility in the next two years.

Youdao has a Altman Z-Score of 0.41, 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 Youdao's Altman Z-Score or its related term are showing as below:

NYSE:DAO' s Altman Z-Score Range Over the Past 10 Years
Min: -1.05   Med: 2.29   Max: 6.95
Current: 0.46

-1.05
6.95

During the past 4 years, Youdao's highest Altman Z-Score was 6.95. The lowest was -1.05. And the median was 2.29.


Youdao Altman Z-Score Historical Data

The historical data trend for Youdao'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.

Youdao Annual Data
Trend Dec17 Dec18 Dec19 Dec20
Altman Z-Score
- - 2.29 -1.05

Youdao Quarterly Data
Dec17 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 6.95 -0.12 -1.05 2.71 1.88

Competitive Comparison

For the Internet Content & Information subindustry, Youdao'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.

   

Youdao Altman Z-Score Distribution

For the Interactive Media industry and Communication Services sector, Youdao's Altman Z-Score distribution charts can be found below:

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



Youdao 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.

Youdao'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*-0.3087+1.4*0+3.3*-0.7002+0.6*2.6149+1.0*1.5263
=0.41

* 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 $463.8 Mil.
Total Current Assets was $416.5 Mil.
Total Current Liabilities was $559.6 Mil.
Retained Earnings was $0.0 Mil.
Pre-Tax Income was -81.250583657588 + -49.922898524014 + -68.423072805958 + -128.89745396881 = $-328.5 Mil.
Interest Expense was -1.2084046692607 + -1.169884347786 + -1.1998226109828 + -0.17869203888057 = $-3.8 Mil.
Revenue was 201.30848249027 + 205.78829347709 + 169.25297814751 + 131.56564766687 = $707.9 Mil.
Market Cap (Today) was $1,502.8 Mil.
Total Liabilities was $574.7 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
=(416.47688715953 - 559.64155642023)/463.80513618677
=-0.3087

X2=Retained Earnings/Total Assets
=0/463.80513618677
=0

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-328.49400895637 - -3.7568036669101)/463.80513618677
=-0.7002

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1502.822/574.72
=2.6149

X5=Revenue/Total Assets
=707.91540178174/463.80513618677
=1.5263

The zones of discrimination were as such:

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

Youdao has a Altman Z-Score of 0.41 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.


Youdao  (NYSE:DAO) 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.


Youdao Altman Z-Score Related Terms

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


Youdao Business Description

Youdao logo
Industry
Traded in Other Exchanges
Address
No. 399, Wangshang Road, Binjiang District, Hangzhou, CHN, 310051
Youdao Inc develops and markets software applications. It engages in developing technologies to provide learning content, applications, and solutions. The firm operates in three segments: Learning services, Learning products, and Online marketing services. Nearly half of its revenues come from the Learning services segment, which generates revenues from online courses, mainly including Youdao Premium Courses, NetEase Cloud Classroom, and China University MOOC. The learning products segment includes sales of smart devices such as Youdao Dictionary Pen and Youdao Pocket Translator. It generates revenues from the online marketing services through the provision of different formats of advertisement, including but not limited to banners, text links, videos, logos, buttons, and rich media.

Youdao Headlines

Other Sources

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)