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ON24 Altman Z-Score

: 2.58 (As of Today)
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Warning Sign:

Altman Z-score of 2.58 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.

ON24 has a Altman Z-Score of 2.58, indicating it is in Grey Zones. This implies that ON24 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 ON24's Altman Z-Score or its related term are showing as below:

ONTF' s Altman Z-Score Range Over the Past 10 Years
Min: 2.58   Med: 5.26   Max: 11.38
Current: 2.58

During the past 4 years, ON24's highest Altman Z-Score was 11.38. The lowest was 2.58. And the median was 5.26.


ON24 Altman Z-Score Historical Data

The historical data trend for ON24'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.

ON24 Annual Data
Trend Dec18 Dec19 Dec20 Dec21
Altman Z-Score
- - - 4.47

ON24 Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.38 8.67 5.26 4.47 3.22

Competitive Comparison

For the Software - Application subindustry, ON24'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.

   

ON24 Altman Z-Score Distribution

For the Software industry and Technology sector, ON24's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where ON24's Altman Z-Score falls into.



ON24 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.

ON24'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*0.6646+1.4*-0.4566+3.3*-0.0802+0.6*3.7456+1.0*0.4371
=2.58

* 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 Mar. 2022:
Total Assets was $462.1 Mil.
Total Current Assets was $427.2 Mil.
Total Current Liabilities was $120.1 Mil.
Retained Earnings was $-211.0 Mil.
Pre-Tax Income was -15.397 + -9.729 + -9.432 + -2.799 = $-37.4 Mil.
Interest Expense was -0.054 + -0.062 + -0.065 + -0.106 = $-0.3 Mil.
Revenue was 48.492 + 52.034 + 49.362 + 52.118 = $202.0 Mil.
Market Cap (Today) was $485.4 Mil.
Total Liabilities was $129.6 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
=(427.209 - 120.082)/462.128
=0.6646

X2=Retained Earnings/Total Assets
=-210.998/462.128
=-0.4566

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-37.357 - -0.287)/462.128
=-0.0802

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=485.359/129.582
=3.7456

X5=Revenue/Total Assets
=202.006/462.128
=0.4371

The zones of discrimination were as such:

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

ON24 has a Altman Z-Score of 2.58 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.


ON24  (NYSE:ONTF) 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.


ON24 Altman Z-Score Related Terms

Thank you for viewing the detailed overview of ON24's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


ON24 Business Description

ON24 logo
Traded in Other Exchanges
N/A
Address
50 Beale Street, 8th Floor, San Francisco, CA, USA, 94105
ON24 Inc provides a cloud-based digital experience platform that enables businesses to convert customer engagement into revenue through interactive webinar experiences, virtual event experiences, and multimedia content experiences. The company derives revenue from subscription agreements with customers for accessing the platform and related services. Geographically, it derives a majority of revenue from the United States.
Executives
Arora Anil director C/O YODLEE, INC., 3600 BRIDGE PARKWAY 2ND FLOOR REDWOOD CITY CA 94065
Zingale Anthony director C/O SERVICEMAX, INC. 4450 ROSEWOOD DR., #200 PLEASANTON CA 94588
Presidio Management Group Vii L L C 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
Federman Irwin director, 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
Tansey Casey M 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
Usvp Entrepreneur Partners Vii B L P 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
Usvp Entrepreneur Partners Vii A L P 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
2180 Associates Fund Vii L P 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
Us Venture Partners Vii L P 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET NEW YORK NY 10282
Gssg Holdings Llc 10 percent owner 200 WEST STREET NEW YORK NY 10282
Special Situations Investing Group Ii, Llc 10 percent owner 200 WEST STREET NEW YORK NY 10282
Goldman Sachs & Co. Llc 10 percent owner 200 WEST STREET NEW YORK NY 10282
Rho Ventures Iii Holdings Llc 10 percent owner 152 W. 57TH STREET 23RD FLOOR NEW YORK NY 10019
Canaan Equity Aggregator Llc 10 percent owner 1624 MARKET STREET, SUITE 226 PMB 29471 DENVER CO 80202

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