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Mayville Engineering Co Altman Z-Score

: 1.63 (As of Today)
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Warning Sign:

Altman Z-score of 1.63 is in distress zone. This implies bankruptcy possibility in the next two years.

Mayville Engineering Co has a Altman Z-Score of 1.63, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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 Mayville Engineering Co's Altman Z-Score or its related term are showing as below:

MEC' s Altman Z-Score Range Over the Past 10 Years
Min: 1.72   Med: 2.33   Max: 3.05
Current: 1.63

During the past 5 years, Mayville Engineering Co's highest Altman Z-Score was 3.05. The lowest was 1.72. And the median was 2.33.


Mayville Engineering Co Altman Z-Score Historical Data

The historical data trend for Mayville Engineering Co'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.

Mayville Engineering Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
- - 2.31 2.36 2.34

Mayville Engineering Co Quarterly Data
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 3.05 2.88 2.34 1.72 1.68

Competitive Comparison

For the Metal Fabrication subindustry, Mayville Engineering Co'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.

   

Mayville Engineering Co Altman Z-Score Distribution

For the Industrial Products industry and Industrials sector, Mayville Engineering Co's Altman Z-Score distribution charts can be found below:

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



Mayville Engineering Co 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.

Mayville Engineering Co'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*0.1004+1.4*0.0388+3.3*-0.0049+0.6*0.6025+1.0*1.1127
=1.63

* 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 $446.3 Mil.
Total Current Assets was $155.3 Mil.
Total Current Liabilities was $110.5 Mil.
Retained Earnings was $17.3 Mil.
Pre-Tax Income was 7.727 + 4.997 + -17.565 + 0.338 = $-4.5 Mil.
Interest Expense was -0.765 + -0.567 + -0.441 + -0.526 = $-2.3 Mil.
Revenue was 138.337 + 136.252 + 112.975 + 109.018 = $496.6 Mil.
Market Cap (Today) was $142.1 Mil.
Total Liabilities was $235.8 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
=(155.328 - 110.507)/446.284
=0.1004

X2=Retained Earnings/Total Assets
=17.298/446.284
=0.0388

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-4.503 - -2.299)/446.284
=-0.0049

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=142.086/235.815
=0.6025

X5=Revenue/Total Assets
=496.582/446.284
=1.1127

The zones of discrimination were as such:

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

Mayville Engineering Co has a Altman Z-Score of 1.63 indicating it is in Distress Zones.

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


Mayville Engineering Co  (NYSE:MEC) 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.


Mayville Engineering Co Altman Z-Score Related Terms

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


Mayville Engineering Co Business Description

Mayville Engineering Co logo
Traded in Other Exchanges
N/A
Address
715 South Street, Mayville, WI, USA, 53050
Mayville Engineering Co Inc is involved in a manufacturing partner that provides a broad range of prototyping and tooling, production fabrication, coating, assembly, and aftermarket components. Its customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction, powersports, agriculture, military, and other end markets. Its services comprise stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly, and logistic services.
Executives
Kent Jennifer J. director QUAD/GRAPHICS, INC. N61 W23044 HARRY'S WAY SUSSEX WI 53089-3995
Stille Randall P officer: Chief Operating Officer 715 SOUTH STREET MAYVILLE WI 53050
Mance Stephen P. officer: Chief Operating Officer 715 SOUTH STREET MAYVILLE WI 53050
Fisher Steven L director 100 N.E. ADAMS STREET PEORIA IL 61629
Carlson Allen J director 1500 WEST UNIVERSITY PARKWAY SARASOTA FL 34243
Christen Timothy L director 715 SOUTH STREET MAYVILLE WI 53050
Rothman Jay O. director C/O QUAD/GRAPHICS, INC. N61 W23044 HARRY'S WAY SUSSEX WI 53089
Butz Todd M officer: Chief Financial Officer 715 SOUTH STREET MAYVILLE WI 53050
Kamphuis Robert D director, officer: Chairman, Pres. & CEO 715 SOUTH STREET MAYVILLE WI 53050
Raber Ryan F officer: EVP - Sales & Marketing 715 SOUTH STREET MAYVILLE WI 53050
Sanderson Clifford O officer: Vice President - HR 715 SOUTH STREET MAYVILLE WI 53050
Welak Eric J officer: EVP - Fabrication 715 SOUTH STREET MAYVILLE WI 53050
Michels Patrick D director 715 SOUTH STREET MAYVILLE WI 53050
St. Peter John A director 715 SOUTH STREET MAYVILLE WI 53050
Johnson Craig E director 715 SOUTH STREET MAYVILLE WI 53050

Mayville Engineering Co Headlines

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