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S&P Global Altman Z-Score

: 4.42 (As of Today)
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Good Sign:

Altman Z-score of 4.48 is strong.

S&P Global has a Altman Z-Score of 4.42, 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 S&P Global's Altman Z-Score or its related term are showing as below:

SPGI' s Altman Z-Score Range Over the Past 10 Years
Min: 1.95   Med: 4.61   Max: 10.48
Current: 4.48

During the past 13 years, S&P Global's highest Altman Z-Score was 10.48. The lowest was 1.95. And the median was 4.61.


S&P Global Altman Z-Score Historical Data

The historical data trend for S&P Global'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.

S&P Global Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.72 7.00 7.84 8.38 10.48

S&P Global Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 9.91 10.16 10.48 4.42 3.96

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, S&P Global'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.

   

S&P Global Altman Z-Score Distribution

For the Capital Markets industry and Financial Services sector, S&P Global's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where S&P Global's Altman Z-Score falls into.



S&P Global 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.

S&P Global'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*0.0199+1.4*0.2689+3.3*0.0843+0.6*5.9837+1.0*0.1486
=4.42

* 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 Jun. 2022:
Total Assets was $64,323 Mil.
Total Current Assets was $6,235 Mil.
Total Current Liabilities was $4,958 Mil.
Retained Earnings was $17,298 Mil.
Pre-Tax Income was 1391 + 1867 + 890 + 1074 = $5,222 Mil.
Interest Expense was -90 + -57 + -25 + -31 = $-203 Mil.
Revenue was 2993 + 2389 + 2088 + 2087 = $9,557 Mil.
Market Cap (Today) was $128,788 Mil.
Total Liabilities was $21,523 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
=(6235 - 4958)/64323
=0.0199

X2=Retained Earnings/Total Assets
=17298/64323
=0.2689

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(5222 - -203)/64323
=0.0843

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=128787.695/21523
=5.9837

X5=Revenue/Total Assets
=9557/64323
=0.1486

The zones of discrimination were as such:

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

S&P Global has a Altman Z-Score of 4.42 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.


S&P Global  (NYSE:SPGI) 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.


S&P Global Altman Z-Score Related Terms

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


S&P Global Business Description

S&P Global logo
Address
55 Water Street, New York, NY, USA, 10041
S&P Global provides data and benchmarks to capital and commodity market participants. In 2021 and excluding IHS Markit, S&P Ratings was over 45% of the firm's revenue and over 55% of the firm's operating income. S&P Ratings is the largest credit rating agency in the world. The firm's other segments include Market Intelligence, Indices, and Platts. Market Intelligence provides desktop tools and other data solutions to investment banks, corporations, and other entities. Indices provides benchmarks for financial markets and is monetized through subscriptions, asset-based fees, and transaction-based royalties. Platts provides benchmarks to commodity markets, principally petroleum.
Executives
Evans Gay Huey director SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Esculier Jacques director C/O AMERICAN STANDARD COMPANIES INC ONE CENTENNIAL AVENUE PISCATAWAY NJ 08855
Moore Sally officer: EVP, Strategic Alliances 55 WATER STREET NEW YORK NY 10041
Kansler Adam Jason officer: President, Market Intelligence C/O MARKIT LTD, 4TH FL, ROPEMAKER PLACE 25 ROPEMAKER STREET LONDON X0 EC2Y 9LY
Tavernier Edouard officer: Head of Global Transportation C/O IHS MARKIT LTD., 4TH FLOOR ROPEMAKER PLACE, 25 ROPEMAKER STREET LONDON, ENGLAND X0 EC2Y 9LY
Kelly Robert P director ONE MELLON CENTER PITTSBURGH PA 15258-0001
Mcwhinney Deborah D director PO BOX 40 EAST BROADWAY BUTTE MT 59701
Washington Gregory N director 55 WATER STREET 45TH FLOOR NEW YORK NY 10041
Saha Saugata officer: President, S&P Global Platts 55 WATER STREET NEW YORK NY 10041
Livingston Ian Paul director 55 WATER STREET NEW YORK NY 10041
Draper Daniel E officer: CEO, S&P Dow Jones Indices 55 WATER STREET NEW YORK NY 10041
William Amelio J. director C/O CHC GROUP LTD. 190 ELGIN AVENUE, GEORGE TOWN GRAND CAYMAN E9 KY1-9005
Craig Christopher officer: SVP and Controller 55 WATER STREET LEGAL DEPARTMENT NEW YORK NY 10041
Manis Dimitra officer: Chief People Officer 55 WATER STREET S&P GLOBAL, 45TH FLOOR NEW YORK NY 10041
Leroux Monique F. director S&P GLOBAL INC. 55 WATER STREET NEW YORK NY 10041

S&P Global Headlines

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