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Qualcomm (NAS:QCOM) Altman Z-Score

: 5.42 (As of Today)
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Good Sign:

Altman Z-score of 5.46 is strong.

Qualcomm has a Altman Z-Score of 5.42, 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 Qualcomm's Altman Z-Score or its related term are showing as below:

QCOM' s Altman Z-Score Range Over the Past 10 Years
Min: 0.48   Med: 8.67   Max: 105.66
Current: 5.46

During the past 13 years, Qualcomm's highest Altman Z-Score was 105.66. The lowest was 0.48. And the median was 8.67.


Qualcomm Altman Z-Score Historical Data

The historical data trend for Qualcomm'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.

Qualcomm Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.70 3.89 4.49 5.03 5.12

Qualcomm Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 6.29 5.84 5.40 5.12 4.93

Competitive Comparison

For the Semiconductors subindustry, Qualcomm'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.

   

Qualcomm Altman Z-Score Distribution

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

* The bar in red indicates where Qualcomm's Altman Z-Score falls in comparison to its industry or sector. The grey bar indicates the Altman Z-Score's extreme value range as defined by GuruFocus.



Qualcomm 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.

Qualcomm'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*0.2203+1.4*0.3702+3.3*0.2804+0.6*4.7499+1.0*0.8589
=5.42

* 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 Dec. 2022:
Total Assets was $50,014 Mil.
Total Current Assets was $21,098 Mil.
Total Current Liabilities was $10,081 Mil.
Retained Earnings was $18,517 Mil.
Pre-Tax Income was 2371 + 3470 + 4239 + 3423 = $13,503 Mil.
Interest Expense was -170 + -145 + -70 + -137 = $-522 Mil.
Revenue was 9463 + 11395 + 10936 + 11164 = $42,958 Mil.
Market Cap (Today) was $148,217 Mil.
Total Liabilities was $31,204 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
=(21098 - 10081)/50014
=0.2203

X2=Retained Earnings/Total Assets
=18517/50014
=0.3702

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(13503 - -522)/50014
=0.2804

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=148216.950/31204
=4.7499

X5=Revenue/Total Assets
=42958/50014
=0.8589

The zones of discrimination were as such:

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

Qualcomm has a Altman Z-Score of 5.42 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.


Qualcomm  (NAS:QCOM) 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.


Qualcomm Altman Z-Score Related Terms

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


Qualcomm (NAS:QCOM) Business Description

Qualcomm logo
Address
5775 Morehouse Drive, San Diego, CA, USA, 92121-1714
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks. The firm is a leader in 5G network technology as well. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones and chips into automotive and Internet of Things markets.
Executives
Neil Martin officer: SVP, Finance and CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
James J Cathey officer: Chief Commercial Officer 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Ann C Chaplin officer: General Counsel&Corp Secretary 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Sylvia Acevedo director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Gregory N Johnson director C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Jean-pascal Tricoire director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Jamie S Miller director GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Heather S Ace officer: EVP, Human Resources 3721 VALLEY CENTRE DR SUITE 500, SAN DIEGO CA 92130
Akash J. Palkhiwala officer: SVP & Interim CFO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
David Wise officer: Interim CFO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Erin L Polek officer: SVP Corporate Controller & CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Martin B Anstice director 4650 CUSHING PARKWAY, FREMONT CA 94538
Irene B Rosenfeld director 999 VANDERBILT BEACH ROAD, SUITE 601, NAPLES FL 34108
Steven M Mollenkopf director, officer: Chief Executive Officer 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Neil Smit director C/O AMERICA ONLINE LATIN AMERICA, INC., 6600 N. ANDREWS AVE., SUITE 400, FT. LAUDERDALE FL 33309

Qualcomm (NAS:QCOM) Headlines

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