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EQT Altman Z-Score

: 0.89 (As of Today)
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Warning Sign:

Altman Z-score of 0.89 is in distress zone. This implies bankruptcy possibility in the next two years.

EQT has a Altman Z-Score of 0.89, 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 EQT's Altman Z-Score or its related term are showing as below:

EQT' s Altman Z-Score Range Over the Past 10 Years
Min: -0.31   Med: 1.4   Max: 2.05
Current: 0.89

During the past 13 years, EQT's highest Altman Z-Score was 2.05. The lowest was -0.31. And the median was 1.40.


EQT Altman Z-Score Historical Data

The historical data trend for EQT'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.

EQT 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 0.76 0.26 0.32 0.25 0.38

EQT 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 0.14 -0.31 0.38 0.09 0.70

Competitive Comparison

For the Oil & Gas E&P subindustry, EQT'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.

   

EQT Altman Z-Score Distribution

For the Oil & Gas industry and Energy sector, EQT's Altman Z-Score distribution charts can be found below:

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



EQT 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.

EQT'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*-0.1372+1.4*-0.0389+3.3*-0.0325+0.6*1.2522+1.0*0.4636
=0.89

* 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 $22,622 Mil.
Total Current Assets was $4,086 Mil.
Total Current Liabilities was $7,190 Mil.
Retained Earnings was $-880 Mil.
Pre-Tax Income was 1202.458 + -1980.28 + 2393.634 + -2642.431 = $-1,027 Mil.
Interest Expense was -65.985 + -67.902 + -76.469 + -80.349 = $-291 Mil.
Revenue was 3372.603 + 2498.527 + 2823.154 + 1792.399 = $10,487 Mil.
Market Cap (Today) was $16,944 Mil.
Total Liabilities was $13,532 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
=(4085.629 - 7189.747)/22621.664
=-0.1372

X2=Retained Earnings/Total Assets
=-880.127/22621.664
=-0.0389

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-1026.619 - -290.705)/22621.664
=-0.0325

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=16944.021/13531.574
=1.2522

X5=Revenue/Total Assets
=10486.683/22621.664
=0.4636

The zones of discrimination were as such:

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

EQT has a Altman Z-Score of 0.89 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.


EQT  (NYSE:EQT) 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.


EQT Altman Z-Score Related Terms

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


EQT Business Description

EQT logo
Address
625 Liberty Avenue, EQT Plaza, Suite 1700, Pittsburgh, PA, USA, 15222
EQT Corp is an independent natural gas production company with operations focused in the cores of the Marcellus and Utica shales in the Appalachian Basin, located in the Eastern United States. The firm focuses on executing combo-development projects for developing multiwell pads to meet supply needs, with a focus on maximizing operational efficiency, technology, and sustainability. Its main customers include marketers, utilities, and industrial operators in the Appalachian Basin. The company has one reportable segment and its revenue stems from three types of gas reserves: natural gas, natural gas liquids, and crude oil. All of the firm's operating revenue is generated in the U.S., with most revenue flowing from the Marcellus Shale field and through the sale of natural gas.
Executives
Hu Frank C. director 625 LIBERTY AVE. SUITE 1700 PITTSBURGH PA 15222
Khani David M. officer: Chief Financial Officer 625 LIBERTY AVE. SUITE 1700 PITTSBURGH PA 15222
James Todd officer: Chief Accounting Officer 625 LIBERTY AVENUE SUITE 1700 PITTSBURGH PA 15222
Derham Kyle officer: Interim Chf Financial Officer 625 LIBERTY AVENUE SUITE 1700 PITTSBURGH PA 15222
Evancho Lesley officer: Chief Human Resources Officer 625 LIBERTY AVENUE SUITE 1700 PITTSBURGH PA 15222
Duran Richard A officer: Chief Information Officer 625 LIBERTY AVENUE SUITE 1700 PITTSBURGH PA 15222
Carrig Janet director ONE SOUTH WACKER DRIVE SUITE 3200 CHICAGO IL 60606
Rice Toby Z. director, officer: President & CEO 400 WOODCLIFF DRIVE CANONSBURG PA 15317
Jackson Kathryn Jean director 121 SW SALMON STREET PORTLAND OR 97204
Vanderhider Hallie A. director 600 TRAVIS STREET, SUITE 3250 HOUSTON TX 77002
Mcmanus J T director 605 RICHARD ARRINGTON JR BLVD N BIRMINGHAM AL 35203-2707
Canaan Lee M director 20101 HOOVER RD DETROIT MI 48205
Jordan William E. officer: EVP and General Counsel 400 WOODCLIFF DRIVE CANONSBURG PA 15317
Mccartney John director US ROBOTICS INC 8100 MCCORMICK BLVD SKOKIE IL 60076
Beebe Lydia I director 13403 NORTHWEST FREEWAY HOUSTON TX 77040

EQT Headlines

Other Sources

EQT Corp. Updates 1 Key New Risk Factor

By tipranks.com 2022-02-21

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