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Snowflake Altman Z-Score

: 17.98 (As of Today)
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Good Sign:

Altman Z-score of 19.66 is strong.

Snowflake has a Altman Z-Score of 17.98, 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 Snowflake's Altman Z-Score or its related term are showing as below:

SNOW' s Altman Z-Score Range Over the Past 10 Years
Min: 19.66   Med: 44.96   Max: 57.52
Current: 19.66

During the past 4 years, Snowflake's highest Altman Z-Score was 57.52. The lowest was 19.66. And the median was 44.96.


Snowflake Altman Z-Score Historical Data

The historical data trend for Snowflake'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.

Snowflake Annual Data
Trend Jan19 Jan20 Jan21 Jan22
Altman Z-Score
- - 47.99 32.33

Snowflake Quarterly Data
Jan19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 42.46 44.96 56.16 32.33 20.87

Competitive Comparison

For the Software - Application subindustry, Snowflake'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.

   

Snowflake Altman Z-Score Distribution

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

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



Snowflake 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.

Snowflake'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*0.4241+1.4*-0.2969+3.3*-0.0948+0.6*29.9896+1.0*0.2012
=17.98

* 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 Apr. 2022:
Total Assets was $7,023 Mil.
Total Current Assets was $4,342 Mil.
Total Current Liabilities was $1,364 Mil.
Retained Earnings was $-2,085 Mil.
Pre-Tax Income was -192.488 + -130.607 + -153.677 + -189.205 = $-666 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0 Mil.
Revenue was 422.371 + 383.774 + 334.441 + 272.198 = $1,413 Mil.
Market Cap (Today) was $46,925 Mil.
Total Liabilities was $1,565 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
=(4341.733 - 1363.718)/7022.699
=0.4241

X2=Retained Earnings/Total Assets
=-2085.163/7022.699
=-0.2969

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-665.977 - 0)/7022.699
=-0.0948

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=46924.816/1564.705
=29.9896

X5=Revenue/Total Assets
=1412.784/7022.699
=0.2012

The zones of discrimination were as such:

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

Snowflake has a Altman Z-Score of 17.98 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.


Snowflake  (NYSE:SNOW) 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.


Snowflake Altman Z-Score Related Terms

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


Snowflake Business Description

Snowflake logo
Address
450 Concar Drive, San Mateo, CA, USA, 94402
Founded in 2012, Snowflake is a data lake, warehousing, and sharing company that came public in 2020. To date, the company has over 3,000 customers including nearly 30% of the Fortune 500 as its customers. Snowflake's data lake stores unstructured and semistructured data that can then be used in analytics to create insights stored in its data warehouse. Snowflake's data sharing capability allows enterprises to easily buy and ingest data almost instantaneously compared with a traditionally months-long process. Overall, the company is known for the fact that all of its data solutions that can be hosted on various public clouds.
Executives
Sequoia Grove Ii, Llc 10 percent owner SEQUOIA CAPITAL 2800 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Sequoia Grove Manager, Llc 10 percent owner SEQUOIA CAPITAL 2800 SAND HILL ROAD, SUITE 101 MENLO PARK CA 94025
Sequoia Capital Growth Fund Iii 10 percent owner 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET OMAHA NE 68131
Iconiq Strategic Partners V Tt Gp, Ltd. 10 percent owner 394 PACIFIC AVENUE SECOND FLOOR SAN FRANCISCO CA 94111
Iconiq Strategic Partners V Gp, L.p. 10 percent owner 394 PACIFIC AVENUE SECOND FLOOR SAN FRANCISCO CA 94111
Altimeter Capital Management General Partner, Llc 10 percent owner ONE INTERNATIONAL PLACE SUITE 4610 BOSTON MA 02110
Iconiq Strategic Partners V-b, L.p. 10 percent owner 394 PACIFIC AVENUE SECOND FLOOR SAN FRANCISCO CA 94111
Iconiq Strategic Partners V, L.p. 10 percent owner 394 PACIFIC AVENUE SECOND FLOOR SAN FRANCISCO CA 94111
Buffett Warren E 10 percent owner 3555 FARNAM ST STE 1440 OMAHA NE 68131
Iconiq Strategic Partners Iii, L.p. 10 percent owner 394 PACIFIC AVENUE, 2ND FLOOR SAN FRANCISCO CA 94111
Jacobson Matthew 10 percent owner C/O DATADOG, INC. 45TH FLOOR NEW YORK NY 10001
Iconiq Strategic Partners Iii-b, L.p. 10 percent owner 394 PACIFIC AVENUE, 2ND FLOOR SAN FRANCISCO CA 94111
Iconiq Strategic Partners Iii Gp, L.p. 10 percent owner 394 PACIFIC AVENUE SECOND FLOOR SAN FRANCISCO CA 94111
Iconiq Strategic Partners Iii Tt Gp, Ltd. 10 percent owner 394 PACIFIC AVENUE SECOND FLOOR SAN FRANCISCO CA 94111

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