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Medallia Altman Z-Score

: 2.73 (As of Today)
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Warning Sign:

Altman Z-score of 2.73 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.

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

MDLA' s Altman Z-Score Range Over the Past 10 Years
Min: 2.44   Med: 4.99   Max: 13.39
Current: 2.73

During the past 4 years, Medallia's highest Altman Z-Score was 13.39. The lowest was 2.44. And the median was 4.99.


Medallia Altman Z-Score Historical Data

The historical data trend for Medallia'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.

Medallia Annual Data
Trend Jan18 Jan19 Jan20 Jan21
Altman Z-Score
- - 6.19 4.15

Medallia Quarterly Data
Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21
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 7.36 3.37 4.15 2.44 2.71

Competitive Comparison

For the Software - Application subindustry, Medallia'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.

   

Medallia Altman Z-Score Distribution

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

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



Medallia 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.

Medallia'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*0.2366+1.4*-0.5426+3.3*-0.1379+0.6*5.4593+1.0*0.386
=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 Jul. 2021:
Total Assets was $1,358.9 Mil.
Total Current Assets was $702.6 Mil.
Total Current Liabilities was $381.1 Mil.
Retained Earnings was $-737.3 Mil.
Pre-Tax Income was -61.553 + -51.647 + -48.233 + -32.792 = $-194.2 Mil.
Interest Expense was -1.863 + -1.754 + 0 + -3.247 = $-6.9 Mil.
Revenue was 144.108 + 131.374 + 128.047 + 120.958 = $524.5 Mil.
Market Cap (Today) was $5,470.9 Mil.
Total Liabilities was $1,002.1 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
=(702.584 - 381.141)/1358.853
=0.2366

X2=Retained Earnings/Total Assets
=-737.263/1358.853
=-0.5426

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-194.225 - -6.864)/1358.853
=-0.1379

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=5470.921/1002.123
=5.4593

X5=Revenue/Total Assets
=524.487/1358.853
=0.386

The zones of discrimination were as such:

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

Medallia 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.


Medallia  (NYSE:MDLA) 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.


Medallia Altman Z-Score Related Terms

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


Medallia Business Description

Medallia logo
Industry
Technology » Software NAICS : 511210 SIC : 7379
Traded in Other Exchanges
N/A
Address
575 Market Street, Suite 1850, San Francisco, CA, USA, 94105
Medallia Inc is a software company. Its SaaS platform, the Medallia Experience Cloud, captures experience data from signal fields emitted by customers and employees. It utilizes AI technology to analyze structured and unstructured data from these signal fields across human, digital and internet of things, or IoT, interactions. The company provides solutions to various industries including Automotive, Healthcare, Hospitality, Insurance, and Retail among others.
Executives
Stretch Leslie director, officer: President & CEO 4140 DUBLIN BLVD SUITE 400 DUBLIN CA 94568
Ottosson Mikael J officer: EVP & Chief Technology Officer C/O MEDALLIA INC 575 MARKET STREET SUITE 1850 SAN FRANCISCO CA 94105
Oulman Roxanne officer: CFO and EVP 4140 DUBLIN BOULEVARD SUITE 400 DUBLIN CA 94568
Duan Jimmy C. officer: EVP & Chief Customer Officer 4140 DUBLIN BLVD SUITE 400 DUBLIN CA 94568
Meresman Stanley J director 2071 HUNTINGTON LANE LOS ALTOS CA 94024
Hald Borge director C/O MEDALLIA INC 575 MARKET STREET SUITE 1850 SAN FRANCISCO CA 94105
Pressman Amy E director C/O MEDALLIA INC 575 MARKET STREET SUITE 1850 SAN FRANCISCO CA 94105
Walske Steven director C/O PARAMETRIC TECHNOLOGY CORP 128 TECHNOLOGY DR WALTHAM MA 02154
White James D director 500 W. MONROE ST., 28TH FLOOR ADTALEM GLOBAL EDUCATION CHICAGO IL 60661
Dauerman Mitchell K director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: DAUERMAN MITCHELL K 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;}
Bernshteyn Robert director C/O SUCCESSFACTORS, INC., 1500 FASHION ISLAND BLVD., SUITE 300 SAN MATEO CA 94404
Leone Douglas M director, 10 percent owner C/O SEQUOIA CAPITAL 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Kilgore Leslie J director 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Sc Us Ssf 2013 (ttgp), L.l.c. 10 percent owner 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Scggf Management, L.p. 10 percent owner 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025

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