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Dell-VMWare Tracking Stock Altman Z-Score

: 1.52 (As of Today)
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Dell-VMWare Tracking Stock has a Altman Z-Score of 1.52, 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 Dell-VMWare Tracking Stock's Altman Z-Score or its related term are showing as below:


Dell-VMWare Tracking Stock Altman Z-Score Historical Data

The historical data trend for Dell-VMWare Tracking Stock'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.

Dell-VMWare Tracking Stock Annual Data
Trend Jan17 Jan18
Altman Z-Score
2.37 1.36

Dell-VMWare Tracking Stock Quarterly Data
Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.36 1.36 1.45 1.63 1.61

Competitive Comparison

For the Software - Infrastructure subindustry, Dell-VMWare Tracking Stock'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.

   

Dell-VMWare Tracking Stock Altman Z-Score Distribution

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

* The bar in red indicates where Dell-VMWare Tracking Stock's Altman Z-Score falls into.



Dell-VMWare Tracking Stock 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.

Dell-VMWare Tracking Stock'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+1.4*0+3.3*0.1275+0.6*1.222+1.0*0.3617
=1.52

* 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. 2018:
Total Assets was $23,962 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 Mil.
Retained Earnings was $0 Mil.
Pre-Tax Income was 345 + 772 + 1175 + 613 = $2,905 Mil.
Interest Expense was -150 + 0 + 0 + 0 = $-150 Mil.
Revenue was 2200 + 2174 + 2008 + 2286 = $8,668 Mil.
Market Cap (Today) was $15,949 Mil.
Total Liabilities was $13,051 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
=(0 - 0)/23962
=0

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2905 - -150)/23962
=0.1275

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=15948.530/13051
=1.222

X5=Revenue/Total Assets
=8668/23962
=0.3617

The zones of discrimination were as such:

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

Dell-VMWare Tracking Stock has a Altman Z-Score of 1.52 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.


Dell-VMWare Tracking Stock  (NYSE:DVMT) 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.


Dell-VMWare Tracking Stock Altman Z-Score Related Terms

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Dell-VMWare Tracking Stock Business Description

Dell-VMWare Tracking Stock logo
Traded in Other Exchanges
N/A
Address
Dell-VMWare Tracking Stock was incorporated in the state of Delaware on January 31, 2013 under the name of Denali Holding Inc. It changed its name to Dell Technologies Inc. on August 25, 2016. On September 7, 2016, a merger subsidiary of Dell Technologies merged with and into EMC Corporation, with EMC Corporation surviving the merger as a wholly-owned subsidiary of Dell Technologies. The company has issued a tracking stock to track the performance of a portion of Dell Technologies' economic interest in the VMware business. It is an information technology company. The company offers virtualization and cloud infrastructure solutions, which enable organizations to manage IT resources across complex multi-cloud, multi-device environments.
Executives
Rothberg Richard J officer: General Counsel & Secretary ONE DELL WAY ROUND ROCK TX 78682
Scannell William F officer: President, Global Sales EMC CORPORATION 176 SOUTH STREET HOPKINTON MA 01748
Sweet Thomas W officer: Chief Financial Officer ONE DELL WAY ROUND ROCK TX 78682
Elias Howard D officer: President, Services & Digital C/O EMC CORPORATION 176 SOUTH STREET HOPKINTON MA 01748
Kullman Ellen Jamison director UNITED TECHNOLOGIES CORP 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Green William D director C/O ACCENTURE 161 N CLARK STREET CHICAGO IL 60601
Vojvodich Lynn M director C/O THE PRICELINE GROUP INC. 800 CONNECTICUT AVENUE NORWALK CT 06854
Dorman David W director CVS HEALTH. ONE CVS DRIVE WOONSOCKET RI 02895
Clarke Jeffrey W officer: COO & Vice Chairman C/O DELL INC. ONE DELL WAY ROUND ROCK TX 78682
Dew Allison officer: Chief Marketing Officer C/O DELL TECHNOLOGIES INC. ONE DELL WAY ROUND ROCK TX 78682
Price Steven H officer: Chief Human Resources Officer ONE DELL WAY ROUND ROCK TX 78682
Quintos Karen H officer: Chief Customer Officer ONE DELL WAY ROUND ROCK TX 78682
Read Rory P officer: Chief Operating Executive ONE DELL WAY ROUND ROCK TX 78682
Dell Michael S director, 10 percent owner, officer: Chief Executive Officer C/O DELL INC. ONE DELL WAY ROUND ROCK TX 78682-2244
Rios Brunilda officer: Chief Accounting Officer C/O DELL TECHNOLOGIES INC. ONE DELL WAY ROUND ROCK TX 78682
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