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Skyline Champion (Skyline Champion) Altman Z-Score : 8.37 (As of Apr. 24, 2024)


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What is Skyline Champion Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 8.53 is strong.

Skyline Champion has a Altman Z-Score of 8.37, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

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 Skyline Champion's Altman Z-Score or its related term are showing as below:

SKY' s Altman Z-Score Range Over the Past 10 Years
Min: 3.2   Med: 7.2   Max: 11.88
Current: 8.53

During the past 13 years, Skyline Champion's highest Altman Z-Score was 11.88. The lowest was 3.20. And the median was 7.20.


Skyline Champion Altman Z-Score Historical Data

The historical data trend for Skyline Champion'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.

Skyline Champion Altman Z-Score Chart

Skyline Champion Annual Data
Trend May14 May15 May16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.09 4.19 6.80 8.04 11.88

Skyline Champion Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-Score Get a 7-Day Free Trial 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 9.49 11.88 10.52 9.68 8.26

Competitive Comparison of Skyline Champion's Altman Z-Score

For the Residential Construction subindustry, Skyline Champion'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.


Skyline Champion's Altman Z-Score Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Skyline Champion's Altman Z-Score distribution charts can be found below:

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



Skyline Champion 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.

Skyline Champion'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*0.284+1.4*0.4646+3.3*0.1435+0.6*9.7435+1.0*1.0591
=8.37

* 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 Dec. 2023:
Total Assets was $1,869 Mil.
Total Current Assets was $870 Mil.
Total Current Liabilities was $339 Mil.
Retained Earnings was $869 Mil.
Pre-Tax Income was 59.734 + 60.45 + 68.535 + 76.456 = $265 Mil.
Interest Expense was -1.927 + -0.362 + -0.377 + -0.383 = $-3 Mil.
Revenue was 559.455 + 464.236 + 464.769 + 491.532 = $1,980 Mil.
Market Cap (Today) was $4,360 Mil.
Total Liabilities was $447 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
=(870.165 - 339.297)/1869.419
=0.284

X2=Retained Earnings/Total Assets
=868.598/1869.419
=0.4646

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(265.175 - -3.049)/1869.419
=0.1435

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=4359.814/447.461
=9.7435

X5=Revenue/Total Assets
=1979.992/1869.419
=1.0591

The zones of discrimination were as such:

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

Skyline Champion has a Altman Z-Score of 8.37 indicating it is in Safe Zones.

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


Skyline Champion  (NYSE:SKY) 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.


Skyline Champion Altman Z-Score Related Terms

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


Skyline Champion (Skyline Champion) Business Description

Traded in Other Exchanges
N/A
Address
755 West Big Beaver Road, Suite 1000, Troy, MI, USA, 48084
Skyline Champion Corp is a factory-built housing company in North America. The company offers a portfolio of manufactured and modular homes, park model RVs, accessory dwelling units and modular buildings for the multi-family, hospitality, senior and workforce housing sectors. It designs and builds a range of manufactured and modular homes, park model RVs, ADUs, and commercial structures. It builds homes under brand names in the factory-built housing industry including Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. It generates maximum revenue from U.S. Factory-built Housing segment.
Executives
Keith A Anderson officer: Chief Executive Officer C/O CHAMPION ENTERPRISES HOLDINGS LLC, 755 W BIG BEAVER RD, #1000, TROY MI 48084
Heath Jenkins officer: President, Retail Operations 755 W BIG BEAVER ROAD, SUITE 1000, TROY MI 48084
Timothy A. Burkhardt officer: Vice President and Controller C/O CHAMPION ENTERPRISES HOLDINGS LLC, 755 W BIG BEAVER RD, #1000, TROY MI 48084
Tawn Kelley director 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Joseph A. Kimmell officer: EVP C/O SKYLINE CHAMPION CORPORATION, 755 WEST BIG BEAVER ROAD, SUITE 1000, TROY MI 48084
Mark J. Yost officer: Executive Vice President C/O CHAMPION ENTERPRISES HOLDINGS LLC, 755 W BIG BEAVER RD, #1000, TROY MI 48084
Michael B Berman director C/O GENERAL GROWTH PROPERTIES, 110 NORTH WACKER DRIVE, CHICAGO IL 60606
Gary E Robinette director 5020 WESTON PARKWAY, SUITE 400, CARY NC 27513
Nikul Patel director 11115 RUSHMORE DR, CHARLOTTE NC 28277-3442
Jonathan Wade Lyall officer: Executive Vice President C/O SKYLINE CHAMPION CORPORATION, 755 WEST BIG BEAVER ROAD, SUITE 1000, TROY MI 48084
Laurie M. Hough officer: EVP, CFO, Treasurer C/O CHAMPION ENTERPRISES HOLDINGS LLC, 755 W BIG BEAVER RD, #1000, TROY MI 48084
Timothy Mark Larson officer: Chief Growth Officer C/O SKYLINE CHAMPION CORPORATION, 755 W. BIG BEAVER RD., SUITE 1000, TROY MI 48084
Mak Capital One Llc 10 percent owner 590 MADISON AVENUE, 31ST FLOOR, NEW YORK NY 10022
Erin Mulligan Nelson director C/O SKYLINE CHAMPION CORPORATION, 755 WEST BIG BEAVER ROAD, SUITE 1000, TROY MI 48084
Eddie Capel director 2300 WINDY RIDGE PARKWAY, SUITE 1000, ATLANTA GA 30339