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Steelcase Altman Z-Score

: 2.76 (As of Today)
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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.

Steelcase has a Altman Z-Score of 2.76, indicating it is in Grey Zones. This implies that Steelcase 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 Steelcase's Altman Z-Score or its related term are showing as below:

SCS' s Altman Z-Score Range Over the Past 10 Years
Min: 2.32   Med: 3.26   Max: 7.21
Current: 2.75

During the past 13 years, Steelcase's highest Altman Z-Score was 7.21. The lowest was 2.32. And the median was 3.26.


Steelcase Altman Z-Score Historical Data

The historical data trend for Steelcase'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.

Steelcase Annual Data
Trend Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.68 3.64 3.30 2.72 2.61

Steelcase Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
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 2.84 2.64 2.49 2.61 2.77

Competitive Comparison

For the Business Equipment & Supplies subindustry, Steelcase'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.

   

Steelcase Altman Z-Score Distribution

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

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



Steelcase 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.

Steelcase'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*0.151+1.4*0.3991+3.3*0.023+0.6*0.9788+1.0*1.3521
=2.76

* 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 May. 2022:
Total Assets was $2,187 Mil.
Total Current Assets was $918 Mil.
Total Current Liabilities was $587 Mil.
Retained Earnings was $873 Mil.
Pre-Tax Income was -15.8 + -1 + 12 + 29.4 = $25 Mil.
Interest Expense was -6.4 + -6.4 + -6.5 + -6.4 = $-26 Mil.
Revenue was 740.7 + 753.1 + 738.2 + 724.8 = $2,957 Mil.
Market Cap (Today) was $1,344 Mil.
Total Liabilities was $1,373 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
=(917.6 - 587.3)/2186.8
=0.151

X2=Retained Earnings/Total Assets
=872.8/2186.8
=0.3991

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(24.6 - -25.7)/2186.8
=0.023

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1343.553/1372.7
=0.9788

X5=Revenue/Total Assets
=2956.8/2186.8
=1.3521

The zones of discrimination were as such:

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

Steelcase has a Altman Z-Score of 2.76 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.


Steelcase  (NYSE:SCS) 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.


Steelcase Altman Z-Score Related Terms

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


Steelcase Business Description

Steelcase logo
Traded in Other Exchanges
Address
901 44th Street SE, Grand Rapids, MI, USA, 49508
Steelcase Inc is a furniture company primarily based in the United States and has operations in Europe, the Middle East, and Africa. Steelcase markets its products primarily through a network of independent and company-owned dealers. The company operates through the Americas segment, the EMEA segment and the Other category. The Americas segment offers architecture, furniture and technology products is marketed to corporate, government, healthcare, education and retail customers, EMEA segment provides furniture systems, storage and seating solutions.
Executives
Miller Steven Douglas officer: VP, Chief Technology Officer 901 44TH STREET SE GRAND RAPIDS MI 49508
Zondervan Robin L officer: Corporate Controller and CAO 901 44TH STREET SE GRAND RAPIDS MI 49508
Williams Linda K director 901 44TH STREET SE GRAND RAPIDS MI 49508
Flynn Donna K officer: VP, Global Talent Management 901 44TH STREET SE GRAND RAPIDS MI 49508
Schmelter Triona director 2021 SPRING ROAD SUITE 600 OAK BROOK IL 60523
Niemann Jennifer C director 901 44TH STREET SE GRAND RAPIDS MI 49508
Kelsey Todd P. director 55 JEWELERS PARK DRIVE NEENAH WI 54956
Brown Timothy C. E. director 901 44TH STREET SE GRAND RAPIDS MI 49508
Krestakos Robert G officer: VP, Global Operations 901 44TH STREET SE GRAND RAPIDS MI 49508
Lenhardt Terrence J officer: VP, Chief Information Officer 901 44TH STREET SE GRAND RAPIDS MI 49508
Moutrey Gale officer: VP, Communications 901 44TH STREET SE GRAND RAPIDS MI 49508
Khorramian Hamid officer: Senior VP, Global Operations 901 - 44TH STREET, SE GRAND RAPIDS MI 49508
Schmitt Eddy F officer: Senior VP, Americas 901 44TH STREET SE GRAND RAPIDS MI 49508
Alvarez Guillaume M officer: Senior VP, EMEA 901 44TH STREET SE GRAND RAPIDS MI 49508
Ludwig James N officer: VP, Global Design & Prod Eng 901 44TH STREET SE GRAND RAPIDS MI 49508

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