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FTI Consulting Altman Z-Score

: 4.32 (As of Today)
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Good Sign:

Altman Z-score of 4.31 is strong.

FTI Consulting has a Altman Z-Score of 4.32, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

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 FTI Consulting's Altman Z-Score or its related term are showing as below:

NYSE:FCN' s Altman Z-Score Range Over the Past 10 Years
Min: 1.05   Med: 2.91   Max: 11.89
Current: 4.31

1.05
11.89

During the past 13 years, FTI Consulting's highest Altman Z-Score was 11.89. The lowest was 1.05. And the median was 2.91.


FTI Consulting Altman Z-Score Historical Data

The historical data trend for FTI Consulting'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.

FTI Consulting Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.97 2.73 3.61 4.08 3.86

FTI Consulting Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.34 3.95 3.86 4.43 4.22

Competitive Comparison

For the Consulting Services subindustry, FTI Consulting'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.

   

FTI Consulting Altman Z-Score Distribution

For the Business Services industry and Industrials sector, FTI Consulting's Altman Z-Score distribution charts can be found below:

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



FTI Consulting 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.

FTI Consulting'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*0.2215+1.4*0.5413+3.3*0.1066+0.6*3.3982+1.0*0.9007
=4.32

* 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 $2,938 Mil.
Total Current Assets was $1,213 Mil.
Total Current Liabilities was $563 Mil.
Retained Earnings was $1,590 Mil.
Pre-Tax Income was 77.774 + 84.743 + 62.011 + 64.579 = $289 Mil.
Interest Expense was -6.206 + -4.797 + -4.636 + -8.491 = $-24 Mil.
Revenue was 711.486 + 686.277 + 626.581 + 622.249 = $2,647 Mil.
Market Cap (Today) was $4,925 Mil.
Total Liabilities was $1,449 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
=(1213.462 - 562.562)/2938.427
=0.2215

X2=Retained Earnings/Total Assets
=1590.467/2938.427
=0.5413

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(289.107 - -24.13)/2938.427
=0.1066

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=4924.784/1449.217
=3.3982

X5=Revenue/Total Assets
=2646.593/2938.427
=0.9007

The zones of discrimination were as such:

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

FTI Consulting has a Altman Z-Score of 4.32 indicating it is in Safe Zones.

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


FTI Consulting  (NYSE:FCN) 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.


FTI Consulting Altman Z-Score Related Terms

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


FTI Consulting Business Description

FTI Consulting logo
Industry
Industrials » Business Services NAICS : 541611 SIC : 8742
Traded in Other Exchanges
Address
555 12th Street North West, Suite 700, Washington, DC, USA, 20004
FTI Consulting Inc is a firm that generates its sales by providing professional business advisory services to customers. The company operates through five segments, namely corporate finance and restructuring, forensic and litigation consulting, economic consulting, technology, and strategic communications. Customers of the company come from a wide array of sectors, including construction, energy and power, environmental, financial institutions, healthcare and life science, insurance, real estate and infrastructure, retail and consumer products, telecom, media, and technology. The majority of the company's revenue is derived from serving customers in the United States.
Executives
Bacon Brenda J director 909 COMMERCE ROAD ANNAPOLIS MD 21403
Costamagna Claudio director VIA SEBETO 4 MILANO L6 20123
Seeger Laureen director C/O MCKESSON CORPORATION ONE POST STREET - 33RD FLOOR SAN FRANCISCO CA 94104
Bartlett Mark S. director 4701 WEST GREENFIELD AVENUE MILWAUKEE WI 53214
Fanandakis Nicholas C director 1007 MARKET STREET WILMINGTON DE 19898
Ellis Vernon James director 49 QUEENS GATE TERRACE LONDON X0 SW7 5PN
Holthaus Gerard E director 3129 BLENDON ROAD OWINGS MILLS MD 21117
Paul Holly officer: Chief Human Resources Officer 6016 KINGSFORD ROAD BETHESDA MD 20817
Keating Brendan J officer: CAO and Controller C/O FTI CONSULTING INC 555 12TH STREET NW WASHINGTON DC 20004
Sabherwal Ajay officer: Chief Financial Officer C/O FAIRPOINT COMMUNICATIONS, INC. 521 E. MOREHEAD STREET, SUITE 500 CHARLOTTE NC 28202
Linton Paul Alderman officer: Chief Strategy/Transf. Officer 5915 SONOMA ROAD BETHESDA MD 20817
Lu Curtis P officer: General Counsel 1203 STONNELL PLACE ALEXANDRIA VA 22302
Gunby Steven Henry director, officer: President & CEO 9508 HEMSWELL PLACE POTOMAC MD 20854
Pachman Matthew officer: VP, Chief Risk/Ethics Officer 4807 JAMESTOWN ROAD BETHESDA MD 20816
Freeman Catherine M officer: SVP, Controller and CAO 909 COMMERCE ROAD ANNAPOLIS MD 21401

FTI Consulting Headlines

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