GURUFOCUS.COM » STOCK LIST » USA » NYSE » Fortive Corp (NYSE:FTV) » Definitions » Altman Z-Score
Switch to:

Fortive Altman Z-Score

: 2.94 (As of Today)
View and export this data going back to 2016. Start your Free Trial

Warning Sign:

Altman Z-score of 2.94 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.

Fortive has a Altman Z-Score of 2.94, indicating it is in Grey Zones. This implies that Fortive 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 Fortive's Altman Z-Score or its related term are showing as below:

FTV' s Altman Z-Score Range Over the Past 10 Years
Min: 1.47   Med: 2.99   Max: 4.2
Current: 2.94

During the past 10 years, Fortive's highest Altman Z-Score was 4.20. The lowest was 1.47. And the median was 2.99.


Fortive Altman Z-Score Historical Data

The historical data trend for Fortive'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.

Fortive 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 3.13 2.74 1.98 3.26 3.27

Fortive 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 4.20 3.96 3.27 2.98 2.81

Competitive Comparison

For the Scientific & Technical Instruments subindustry, Fortive'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.

   

Fortive Altman Z-Score Distribution

For the Hardware industry and Technology sector, Fortive's Altman Z-Score distribution charts can be found below:

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



Fortive 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.

Fortive'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*-0.0103+1.4*0.3966+3.3*0.0523+0.6*3.1318+1.0*0.3432
=2.94

* 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 $16,071 Mil.
Total Current Assets was $2,445 Mil.
Total Current Liabilities was $2,611 Mil.
Retained Earnings was $6,375 Mil.
Pre-Tax Income was 208.2 + 190.8 + 177.2 + 174.1 = $750 Mil.
Interest Expense was -21 + -18.8 + -25.2 + -25.1 = $-90 Mil.
Revenue was 1463.3 + 1376.5 + 1376.3 + 1299.5 = $5,516 Mil.
Market Cap (Today) was $20,737 Mil.
Total Liabilities was $6,622 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
=(2445.3 - 2611.3)/16070.9
=-0.0103

X2=Retained Earnings/Total Assets
=6374.5/16070.9
=0.3966

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(750.3 - -90.1)/16070.9
=0.0523

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=20737.137/6621.5
=3.1318

X5=Revenue/Total Assets
=5515.6/16070.9
=0.3432

The zones of discrimination were as such:

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

Fortive has a Altman Z-Score of 2.94 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.


Fortive  (NYSE:FTV) 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.


Fortive Altman Z-Score Related Terms

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


Fortive Business Description

Fortive logo
Address
6920 Seaway Boulevard, Everett, WA, USA, 98203
Fortive Corp is a diversified industrial technology firm with a broad portfolio of mission-critical products and services that include field solutions, product realization, health, and sensing technologies. The company serves a wide range of end markets, including manufacturing, utilities, medical, and electronics. Fortive generated roughly $5.3 billion in revenue and $1.2 billion in adjusted operating income in 2021.
Executives
Newcombe Tamara S. officer: President & CEO of PT 6920 SEAWAY BLVD. EVERETT WA 98203
Lassiter Wright Iii director 500 PLAZA DRIVE C/O QUEST DIAGNOSTICS SECAUCUS NJ 07094
Soroye Olumide officer: President & CEO of IOS 6920 SEAWAY BLVD. EVERETT WA 98203
Simmons Edward Read officer: SVP - Strategy 6920 SEAWAY BLVD EVERETT WA 98203
Hayes Rejji P director ONE ENERGY PLAZA JACKSON MI 49201
Dubey Sharmistha director 8750 NORTH CENTRAL EXPRESSWAY SUITE 1400 DALLAS TX 75231
Mulhall Christopher M. officer: VP - Chief Accounting Officer C/O FORTIVE CORPORATION 6920 SEAWAY BLVD EVERETT WA 98203
Sargent Jeannine P director C/O VEECO INSTRUMENTS INC. 100 SUNNYSIDE BOULEVARD SUITE B WOODBURY NY 11797
Hulit Barbara B. officer: Senior Vice President C/O FORTIVE CORPORATION 6920 SEAWAY BLVD EVERETT WA 98203
Weaver Emily A. officer: VP-Chief Accounting Officer C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Mclaughlin Charles E officer: SVP - Chief Financial Officer C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Murphy Patrick K officer: Senior Vice President C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Schwarz Jonathan L officer: VP-Corporate Development C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Pringle William W officer: Senior Vice President C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203
Walker Stacey A. officer: SVP - Human Resources C/O FORTIVE CORPORATION 6920 SEAWAY BOULEVARD EVERETT WA 98203

Fortive Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)