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Select Medical Holdings Altman Z-Score

: 1.64 (As of Today)
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Warning Sign:

Altman Z-score of 1.65 is in distress zone. This implies bankrupcy possibility in the next two years.

Select Medical Holdings has a Altman Z-Score of 1.64, 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 Select Medical Holdings's Altman Z-Score or its related term are showing as below:

NYSE:SEM' s Altman Z-Score Range Over the Past 10 Years
Min: 1.13   Med: 1.58   Max: 2.21
Current: 1.65

1.13
2.21

During the past 13 years, Select Medical Holdings's highest Altman Z-Score was 2.21. The lowest was 1.13. And the median was 1.58.


Select Medical Holdings Altman Z-Score Historical Data

The historical data trend for Select Medical 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.

Select Medical Holdings Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.51 1.59 1.47 1.35 1.46

Select Medical 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 1.35 1.46 1.58 1.83 1.75

Competitive Comparison

For the Medical Care Facilities subindustry, Select Medical 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.

   

Select Medical Holdings Altman Z-Score Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Select Medical Holdings's Altman Z-Score distribution charts can be found below:

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



Select Medical 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.

Select Medical 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*0.0573+1.4*0.0809+3.3*0.1072+0.6*0.5511+1.0*0.7729
=1.64

* 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 $7,899 Mil.
Total Current Assets was $1,779 Mil.
Total Current Liabilities was $1,326 Mil.
Retained Earnings was $639 Mil.
Pre-Tax Income was 127.882 + 261.889 + 182.278 + 137.277 = $709 Mil.
Interest Expense was -33.825 + -33.888 + -34.402 + -35.512 = $-138 Mil.
Revenue was 1534.221 + 1564.02 + 1546.463 + 1460.494 = $6,105 Mil.
Market Cap (Today) was $3,602 Mil.
Total Liabilities was $6,536 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
=(1779.341 - 1326.373)/7899.473
=0.0573

X2=Retained Earnings/Total Assets
=639.451/7899.473
=0.0809

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(709.326 - -137.627)/7899.473
=0.1072

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=3601.793/6535.861
=0.5511

X5=Revenue/Total Assets
=6105.198/7899.473
=0.7729

The zones of discrimination were as such:

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

Select Medical Holdings has a Altman Z-Score of 1.64 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.


Select Medical Holdings  (NYSE:SEM) 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.


Select Medical Holdings Altman Z-Score Related Terms

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


Select Medical Holdings Business Description

Select Medical Holdings logo
Industry
Traded in Other Exchanges
Address
4714 Gettysburg Road, P.O. Box 2034, Mechanicsburg, PA, USA, 17055
Select Medical Holdings Corp is a healthcare company that operates through four main segments: critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and Concentra institutions. Critical illness recovery hospitals and rehabilitation centers are designed for patients requiring extended recovery time with medical services. These two sectors combined compose roughly half of the total revenue and include over 100 critical illness recovery hospitals and inpatient rehab facilities. The outpatient rehabilitation segment includes over 1,700 rehabilitation clinics. The Concentra segment includes over 500 institutions. The company is headquartered in Pennsylvania, and it operates across the United States.
Executives
Ortenzio Rocco A director, officer: Vice Chairman and Co-Founder SELECT MEDICAL CORP 4716 OLD GETTYSBURG RD PO BOX 2034 MECHANICSBURG PA 17055
Romberger Scott A officer: Senior Vice President 4716 OLD GETTYSBURG ROAD PO BOX 2034 MECHANICSBURG PA 17055
Tarvin Michael E officer: Executive Vice President 4716 OLD GETTYSBURG ROAD PO BOX 2034 MECHANICSBURG PA 17055
Saich John A. officer: Executive Vice President C/O SELECT MEDICAL HOLDINGS CORPORATION 4714 GETTYSBURG ROAD MECHANICSBURG PA 17055
Chernow David S officer: President and CEO C/O JUNIOR ACHIEVEMENT INC ONE EDUCATION WAY COLORADO SPRINGS CO 80906
Jackson Martin F officer: Executive Vice President 4716 OLD GETTYSBURG ROAD PO BOX 2034 MECHANICSBURG PA 17055
Thomas Daniel director C/O SELECT MEDICAL CORPORATION 4714 GETTYSBURG ROAD P.O. BOX 2034 MECHANICSBURG PA 17055
Cressey Bryan C director C/O CLARION TECHNOLOGIES INC 235 CENTRAL AVE HOLLAND MI 49423
Scully Thomas director 320 PARK AVENUE, SUITE # 2500 NEW YORK NM 10022
Carson Russell L director 320 PARK AVENUE STE 2500 NEW YORK NY 10022
Frist William H. director 600 MONTGOMERY STREET SAN FRANCISCO CA 94111
Ely James S. Iii director 4000 MERIDIAN BLVD FRANKLIN TN 37067
Ortenzio Robert A director, officer: Exec. Chairman and Co-Founder 4718 OLD GETTYSBURG RD POST OFFICE BOX 2034 MECHANICSBURG PA 30309
Tavenner Marilyn B director BOULDERS III 7800 BEAUFORT SPRING DR RICHMOND VA 23235
Breighner Robert G. Jr officer: Vice President, Compliance C/O SELECT MEDICAL HOLDINGS CORPORATION 4714 GETTYSBURG ROAD MACHANICSBURG PA 17055

Select Medical Holdings Headlines

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