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Leidos Holdings Altman Z-Score

: 2.33 (As of Today)
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Warning Sign:

Altman Z-score of 2.34 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

Leidos Holdings has a Altman Z-Score of 2.33, indicating it is in Grey Zones. This implies that Leidos Holdings 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 Leidos Holdings's Altman Z-Score or its related term are showing as below:

NYSE:LDOS' s Altman Z-Score Range Over the Past 10 Years
Min: 0.79   Med: 2.55   Max: 3.97
Current: 2.34

0.79
3.97

During the past 13 years, Leidos Holdings's highest Altman Z-Score was 3.97. The lowest was 0.79. And the median was 2.55.


Leidos Holdings Altman Z-Score Historical Data

The historical data trend for Leidos Holdings'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.

Leidos Holdings Annual Data
Trend Jan11 Jan12 Jan13 Jan14 Jan15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.71 2.44 2.46 3.13 2.47

Leidos Holdings Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 2.23 2.47 2.43 2.46 2.40

Competitive Comparison

For the Information Technology Services subindustry, Leidos Holdings'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.

   

Leidos Holdings Altman Z-Score Distribution

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

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



Leidos Holdings 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.

Leidos Holdings'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*0.0167+1.4*0.1324+3.3*0.0886+0.6*1.3641+1.0*1.0163
=2.33

* 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 Sep. 2021:
Total Assets was $13,281 Mil.
Total Current Assets was $3,569 Mil.
Total Current Liabilities was $3,347 Mil.
Retained Earnings was $1,758 Mil.
Pre-Tax Income was 260 + 223 + 262 + 245 = $990 Mil.
Interest Expense was -47 + -46 + -45 + -49 = $-187 Mil.
Revenue was 3483 + 3448 + 3315 + 3252 = $13,498 Mil.
Market Cap (Today) was $12,434 Mil.
Total Liabilities was $9,115 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
=(3569 - 3347)/13281
=0.0167

X2=Retained Earnings/Total Assets
=1758/13281
=0.1324

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(990 - -187)/13281
=0.0886

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=12434.069/9115
=1.3641

X5=Revenue/Total Assets
=13498/13281
=1.0163

The zones of discrimination were as such:

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

Leidos Holdings has a Altman Z-Score of 2.33 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.


Leidos Holdings  (NYSE:LDOS) 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.


Leidos Holdings Altman Z-Score Related Terms

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


Leidos Holdings Business Description

Leidos Holdings logo
Industry
Technology » Software NAICS : 541513 SIC : 7373
Traded in Other Exchanges
Address
11951 Freedom Drive, Reston, VA, USA, 20190
Leidos Holdings Inc is engaged in scientific, engineering, system integration, technical services, and solutions to various government entities and highly regulated industries, including the U.S. Department of Defense, Intelligence Community and the British Ministry of Defense. Areas of focus include intelligence and surveillance, cybersecurity, complex logistics, energy, and health.
Executives
John Miriam E director 7011 EAST AVENUE LIVERMORE CA 94550
Moos James Robert officer: Group President 11951 FREEDOM DRIVE RESTON VA 20190
Kraemer Harry M Jansen Jr director DENTSPLY SIRONA INC. 13320 BALLANTYNE CORPORATE PLACE CHARLOTTE NC 28277
Krone Roger A director, officer: CEO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: KRONE ROGER A a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Cage Christopher R officer: SVP and Corporate Controller 11951 FREEDOM DRIVE RESTON VA 20190
Kendall Frank Iii director 11951 FREEDOM DRIVE RESTON VA 20190
Reagan James officer: EVP, Chief Financial Officer C/O DELTEK 13880 DULLES CORNER LANE HERNDON VA 20171
Howe Jerald S Jr officer: Executive VP & General Counsel PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HOWE JERALD S JR a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Williams Noel B director ONE PARK PLAZA NASHVILLE TN 37203
Schmanske Mary Vicki officer: Group President 11951 FREEDOM DRIVE RESTON VA 20190
Porter Elizabeth A officer: Group President 1750 PRESIDENTS STREET RESTON VA 20190
Stevens Roy E officer: Chief of Business Development 11951 FREEDOM DRIVE RESTON VA 20190
May Gary Stephen director 11951 FREEDOM DRIVE RESTON VA 20190
Fubini David G director D.G. FUBINI CONSULTANTS, LLC 80 SEARS ROAD BROOKLINE MA 02445
Stalnecker Susan M director TWO N NINTHST ALLENTOWN PA 18101

Leidos Holdings Headlines

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