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REX American Resources (NYSE:REX) Altman Z-Score

: 11.98 (As of Today)
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Good Sign:

Altman Z-score of 11.98 is strong.

REX American Resources has a Altman Z-Score of 11.98, 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 REX American Resources's Altman Z-Score or its related term are showing as below:

REX' s Altman Z-Score Range Over the Past 10 Years
Min: 5.24   Med: 9.38   Max: 13.96
Current: 11.98

During the past 13 years, REX American Resources's highest Altman Z-Score was 13.96. The lowest was 5.24. And the median was 9.38.


REX American Resources Altman Z-Score Historical Data

The historical data trend for REX American Resources'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.

REX American Resources Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.96 9.16 9.60 9.52 8.93

REX American Resources Quarterly Data
Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23
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 8.38 8.93 10.11 10.45 10.43

Competitive Comparison

For the Chemicals subindustry, REX American Resources'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.


REX American Resources Altman Z-Score Distribution

For the Chemicals industry and Basic Materials sector, REX American Resources's Altman Z-Score distribution charts can be found below:

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



REX American Resources 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.

REX American Resources'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*0.5886+1.4*1.0855+3.3*0.1265+0.6*13.3107+1.0*1.348
=11.98

* 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 Oct. 2023:
Total Assets was $627.6 Mil.
Total Current Assets was $418.1 Mil.
Total Current Liabilities was $48.7 Mil.
Retained Earnings was $681.2 Mil.
Pre-Tax Income was 41.282 + 16.052 + 8.688 + 13.336 = $79.4 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.0 Mil.
Revenue was 221.079 + 211.977 + 212.714 + 200.167 = $845.9 Mil.
Market Cap (Today) was $825.5 Mil.
Total Liabilities was $62.0 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
=(418.085 - 48.69)/627.564
=0.5886

X2=Retained Earnings/Total Assets
=681.193/627.564
=1.0855

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(79.358 - 0)/627.564
=0.1265

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=825.477/62.016
=13.3107

X5=Revenue/Total Assets
=845.937/627.564
=1.348

The zones of discrimination were as such:

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

REX American Resources has a Altman Z-Score of 11.98 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.


REX American Resources  (NYSE:REX) 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.


REX American Resources Altman Z-Score Related Terms

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


REX American Resources (NYSE:REX) Business Description

Traded in Other Exchanges
Address
7720 Paragon Road, Dayton, OH, USA, 45459
REX American Resources Corp operates as a holding company, which engages in investment in alternative energy and ethanol production entities. Its operating segments include Ethanol and By-Products. Its products include dried distillers grains, modified distillers grains, and non-food grade corn oil.
Executives
Douglas Bruggeman officer: CFO, VP-Finance, Treasurer 7720 PARAGON ROAD, DAYTON OH 45459
Cheryl Lea Bustos director 43 SUGARCREEK TRAIL, GALENA IL 61036
Anne Macmillan director 7720 PARAGON ROAD, DAYTON OH 45459
J. Dennis Hastert director 20 S. WACKER DRIVE, CHICAGO IL 60606
Lawrence Tomchin director 7720 PARAGON ROAD, DAYTON OH 45459
Mervyn L Alphonso director 7720 PARAGON ROAD, DAYTON OH 45459
David L Bearden officer: President;COO 1517 WOODS DRIVE - UNIT 209, ARLINGTON HEIGHTS IL 60004
Zafar A Rizvi officer: VP Loss Prevention 7720 PARAGON ROAD, DAYTON OH 45459
David Fuchs officer: VP Mgmt Information Systems 1366 HOLLOWCREEK DRIVE, MIAMISBURG OH 45342
Keith B Magby officer: VP Operations 1947 FOUNTAINVIEW DRIVE, DAYTON OH 45414
Philip J Kellar officer: VP Store Operations P O BOX 6592, KINGSPORT TN 37663
Edward M Kress director, officer: Secretary 6505 LANDSEND COURT, DAYTON OH 45414
Lee Fisher director 3605 WARRENSVILLE CENTER ROAD, SHAKER HEIGHTS OH 44122
David Harris director 237 PARK AVENUE - SUITE 900, NEW YORK NY 10017
Robert George Davidoff director 7720 PARAGON ROAD, DAYTON OH 45459