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Emerald Holding (Emerald Holding) Altman Z-Score : -0.09 (As of Apr. 25, 2024)


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What is Emerald Holding Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of -0.09 is in distress zone. This implies bankruptcy possibility in the next two years.

Emerald Holding has a Altman Z-Score of -0.09, 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 Emerald Holding's Altman Z-Score or its related term are showing as below:

EEX' s Altman Z-Score Range Over the Past 10 Years
Min: -2.41   Med: 0.3   Max: 1.37
Current: -0.09

During the past 10 years, Emerald Holding's highest Altman Z-Score was 1.37. The lowest was -2.41. And the median was 0.30.


Emerald Holding Altman Z-Score Historical Data

The historical data trend for Emerald Holding'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.

Emerald Holding Altman Z-Score Chart

Emerald Holding Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.56 -2.41 -0.83 0.27 -0.09

Emerald Holding Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-Score Get a 7-Day Free Trial 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 0.27 0.28 0.27 -0.08 -0.09

Competitive Comparison of Emerald Holding's Altman Z-Score

For the Advertising Agencies subindustry, Emerald Holding'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.


Emerald Holding's Altman Z-Score Distribution in the Media - Diversified Industry

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

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



Emerald Holding 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.

Emerald Holding'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*0.0767+1.4*-0.6189+3.3*0.0383+0.6*0.3218+1.0*0.3632
=-0.09

* 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 Dec. 2023:
Total Assets was $1,053.9 Mil.
Total Current Assets was $310.9 Mil.
Total Current Liabilities was $230.1 Mil.
Retained Earnings was $-652.3 Mil.
Pre-Tax Income was 11.4 + -11.6 + -12.5 + 9.8 = $-2.9 Mil.
Interest Expense was -11.8 + -12.1 + -11.4 + -8 = $-43.3 Mil.
Revenue was 101.5 + 72.5 + 86.5 + 122.3 = $382.8 Mil.
Market Cap (Today) was $368.9 Mil.
Total Liabilities was $1,146.4 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
=(310.9 - 230.1)/1053.9
=0.0767

X2=Retained Earnings/Total Assets
=-652.3/1053.9
=-0.6189

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-2.9 - -43.3)/1053.9
=0.0383

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=368.874/1146.4
=0.3218

X5=Revenue/Total Assets
=382.8/1053.9
=0.3632

The zones of discrimination were as such:

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

Emerald Holding has a Altman Z-Score of -0.09 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.


Emerald Holding  (NYSE:EEX) 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.


Emerald Holding Altman Z-Score Related Terms

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Emerald Holding (Emerald Holding) Business Description

Traded in Other Exchanges
Address
100 Broadway, 14th Floor, New York, NY, USA, 10005
Emerald Holding Inc is an operator of B2B trade shows in the United States by NSF. It operates trade shows, which serve a large and broad set of global exhibitors and attendees, across multiple attractive, fragmented sectors that represent significant portions of the U.S. economy. The company operates trade shows in several broadly-defined industry sectors namely, Gift, Home and General Merchandise, Sports Design and Construction, Technology, Jewelry, Other Trade Shows, Other Events, and Other Marketing Services amongst other. It operates in three segments: Commerce; Design, Creative, and Technology; and All others.
Executives
Danielle Puceta officer: EVP, Content & Commerce 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
Issa Jouaneh officer: President, Connections 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
Brian Field officer: Chief Operating Officer EMERALD HOLDING, INC., 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
David Saul Levin director EMERALD HOLDING, INC., 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
William Charles officer: Chief Information Officer EMERALD EXPOSITIONS EVENTS, INC., 31910 DEL OBISPO STREET, SUITE 200, SAN JUAN CAPISTRANO CA 92675
Stacey Sayetta officer: General Counsel EMERALD HOLDING, INC., 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
Mitchell Gendel officer: General Counsel EMERALD HOLDING, INC., 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
David B. Doft officer: CFO & Treasurer EMERALD HOLDING, INC., 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
Herve Sedky officer: CEO & President EMERALD HOLDING, INC., 100 BROADWAY, 14TH FLOOR, NEW YORK NY 10005
Lynda M Clarizio director 200 N. MILWAUKEE AVENUE, VERNON HILLS IL 60061
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