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Essex Property Trust Altman Z-Score

: 1.89 (As of Today)
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Warning Sign:

Altman Z-score of 1.93 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Essex Property Trust has a Altman Z-Score of 1.89, indicating it is in Grey Zones. This implies that Essex Property Trust is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

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 Essex Property Trust's Altman Z-Score or its related term are showing as below:

ESS' s Altman Z-Score Range Over the Past 10 Years
Min: 0.41   Med: 1.12   Max: 2.23
Current: 1.93

During the past 13 years, Essex Property Trust's highest Altman Z-Score was 2.23. The lowest was 0.41. And the median was 1.12.


Essex Property Trust Altman Z-Score Historical Data

The historical data trend for Essex Property Trust'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.

Essex Property Trust 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 1.77 1.83 2.10 1.63 2.23

Essex Property Trust 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 1.97 2.08 2.23 2.23 1.74

Competitive Comparison

For the REIT - Residential subindustry, Essex Property Trust'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.

   

Essex Property Trust Altman Z-Score Distribution

For the REITs industry and Real Estate sector, Essex Property Trust's Altman Z-Score distribution charts can be found below:

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



Essex Property Trust 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.

Essex Property Trust'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*0.0024+1.4*-0.0855+3.3*0.0509+0.6*2.8664+1.0*0.1207
=1.89

* 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 $12,558 Mil.
Total Current Assets was $446 Mil.
Total Current Liabilities was $416 Mil.
Retained Earnings was $-1,074 Mil.
Pre-Tax Income was 54.826 + 75.621 + 154.402 + 128.043 = $413 Mil.
Interest Expense was -67.685 + -57.944 + -50.486 + -50.019 = $-226 Mil.
Revenue was 399.978 + 381.905 + 371.596 + 362.857 = $1,516 Mil.
Market Cap (Today) was $18,684 Mil.
Total Liabilities was $6,518 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
=(446.072 - 416.204)/12558.011
=0.0024

X2=Retained Earnings/Total Assets
=-1073.577/12558.011
=-0.0855

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(412.892 - -226.134)/12558.011
=0.0509

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=18683.865/6518.213
=2.8664

X5=Revenue/Total Assets
=1516.336/12558.011
=0.1207

The zones of discrimination were as such:

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

Essex Property Trust has a Altman Z-Score of 1.89 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Essex Property Trust  (NYSE:ESS) 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.


Essex Property Trust Altman Z-Score Related Terms

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


Essex Property Trust Business Description

Essex Property Trust logo
Address
1100 Park Place, Suite 200, San Mateo, CA, USA, 94403
Essex Property Trust owns a portfolio of 253 apartment communities with over 62,000 units and is developing three additional properties with 571 units. The company focuses on owning large, high-quality properties on the West Coast in the urban and suburban submarkets of Southern California, Northern California, and Seattle.
Executives
Pak Barbara officer: Executive Vice President & CFO C/O ESSEX PROPERTY TRUST, INC. 1100 PARK PLACE, SUITE 200 SAN MATEO CA 94403
Hawthorne Maria R director 701 WESTERN AVENUE GLENDALE CA 91201
Berry Adam W officer: Co-Chief Investment Officer C/O ESSEX PROPERTY TRUST, INC. 1100 PARK PLACE, SUITE 200 SAN MATEO CA 94403
Kasaris Mary director C/O ESSEX PROPERTY TRUST, INC. 1100 PARK PLACE, SUITE 200 SAN MATEO CA 94403
Johnson Amal M director C/O MELLANOX TECHNOLOGIES, INC. 350 OAKMEAD PARKWAY, SUITE 100 SUNNYVALE CA 94085
Farias John officer: Group Vice President and CAO C/O ESSEX PROPERTY TRUST, INC 1100 PARK PLACE, SUITE 200 SAN MATEO CA 94403
Kleiman Angela L. officer: Executive Vice President & CFO 1100 PARK PLACE SUITE 200 SAN MATEO CA 94403
Robinson Thomas E director 309 GARRISON FOREST ROAD OWNINGS MILLS MD 21117
Lyons Irving F Iii director C/O ESSEX PROPERTY TRUST, INC. 925 E. MEADOW DRIVE PALO ALTO CA 94303
Sullivan Thomas P. director 525 MARKET STREET, 4TH FLOOR SAN FRANCISCO CA 94133
Scordelis Byron A director
Zinngrabe Claude J. Jr. director 925 EAST MEADOW DRIVE PALO ALTO CA 94303
Sears Janice L. director 1100 PARK PLACE SUITE 200 SAN MATEO CA 94403
Alexander Erik J. officer: Senior Vice President 925 EAST MEADOW DRIVE PALO ALTO CA 94303
Burkart John F. officer: Executive Vice President C/O ESSEX PROPERTY TRUST INC. 1100 PARK PLACE, SUITE 200 SAN MATEO CA 94403

Essex Property Trust Headlines

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