GURUFOCUS.COM » STOCK LIST » USA » NYSE » Corning Inc (NYSE:GLW) » Definitions » Altman Z-Score
Switch to:

Corning Altman Z-Score

: 2.73 (As of Today)
View and export this data going back to 1945. Start your Free Trial

Warning Sign:

Altman Z-score of 2.75 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.

Corning has a Altman Z-Score of 2.73, indicating it is in Grey Zones. This implies that Corning 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 Corning's Altman Z-Score or its related term are showing as below:

GLW' s Altman Z-Score Range Over the Past 10 Years
Min: -0.93   Med: 3.06   Max: 13.79
Current: 2.75

During the past 13 years, Corning's highest Altman Z-Score was 13.79. The lowest was -0.93. And the median was 3.06.


Corning Altman Z-Score Historical Data

The historical data trend for Corning'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.

Corning 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 3.05 2.65 2.36 2.32 2.69

Corning 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 2.73 2.69 2.69 2.69 2.57

Competitive Comparison

For the Electronic Components subindustry, Corning'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.

   

Corning Altman Z-Score Distribution

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

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



Corning 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.

Corning'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*0.0792+1.4*0.5666+3.3*0.0961+0.6*1.7249+1.0*0.4908
=2.73

* 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 $29,718 Mil.
Total Current Assets was $7,883 Mil.
Total Current Liabilities was $5,530 Mil.
Retained Earnings was $16,837 Mil.
Pre-Tax Income was 750 + 761 + 576 + 480 = $2,567 Mil.
Interest Expense was -72 + -71 + -73 + -72 = $-288 Mil.
Revenue was 3615 + 3680 + 3676 + 3615 = $14,586 Mil.
Market Cap (Today) was $30,592 Mil.
Total Liabilities was $17,736 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
=(7883 - 5530)/29718
=0.0792

X2=Retained Earnings/Total Assets
=16837/29718
=0.5666

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2567 - -288)/29718
=0.0961

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=30592.064/17736
=1.7249

X5=Revenue/Total Assets
=14586/29718
=0.4908

The zones of discrimination were as such:

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

Corning has a Altman Z-Score of 2.73 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.


Corning  (NYSE:GLW) 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.


Corning Altman Z-Score Related Terms

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


Corning Business Description

Corning logo
Address
One Riverfront Plaza, Corning, NY, USA, 14831
Corning Inc is a leader in materials science, specializing in the production of glass, ceramics and optical fiber. The firm supplies its products for a wide range of applications, from flat-panel displays in televisions to gasoline particulate filters in automobiles to optical fiber for broadband access, with a leading share in many of its end markets.
Executives
Amin Jaymin officer: SVP and Chief Tech. Officer ONE RIVERFRONT PLAZA CORNING NY 14831
Capps Cheryl C officer: SVP & Chief Supply Chain Off. 5830 GRANITE PARKWAY SUITE 1150 PLANO TX 75024
Craig Pamela director C/O ACCENTURE 161 N CLARK STREET CHICAGO IL 60601
Ferguson Roger W. Jr. director CORNING INCORPORATED ONE RIVERFRONT PLAZA CORNING NY 14831
Samsung Display Co., Ltd. 10 percent owner 1, SAMSUNG-RO, GIHEUNG-GU, YONGIN-SI GYEONGGI-DO M5 17113
Bell Michael Alan officer: Senior VP &.GM, Optical Comm. ONE RIVERFRONT PLAZA CORNING NY 14831
Becker Stefan officer: SVP & Operations Controller ONE RIVERFRONT PLAZA CORNING NY 14831
Zhang John Z officer: Senior VP & GM, Display ONE RIVERFRONT PLAZA CORNING NY 14831
Verkleeren Ronald L officer: Senior VP & GM, Life Sciences ONE RIVERFRONT PLAZA CORNING NY 14831
Nelson Avery H Iii officer: Senior VP & GM, Automotive ONE RIVERFRONT PLAZA CORNING NY 14831
Bayne John P Jr officer: SVP & GM Mobile Consumer Elec. ONE RIVERFRONT PLAZA CORNING NY 14831
Fang Li officer: Pres.&GM Corning Greater China ONE RIVERFRONT PLAZA CORNING NY 14831
Mullins Anne officer: Senior Vice President & CDIO ONE RIVERFRONT PLAZA CORNING NY 14831
France Robert P. officer: Senior VP, Human Resources ONE RIVERFRONT PLAZA CORNING NY 14831
Brun Leslie A director 435 DEVON PARK DRIVE 700 BUILDING WAYNE PA 19087

Corning Headlines

Other Sources

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)