GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Seaboard Corp (AMEX:SEB) » Definitions » Altman Z-Score

Seaboard (Seaboard) Altman Z-Score : 3.24 (As of May. 22, 2024)


View and export this data going back to 1980. Start your Free Trial

What is Seaboard 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 3.24 is strong.

Seaboard has a Altman Z-Score of 3.24, 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 Seaboard's Altman Z-Score or its related term are showing as below:

SEB' s Altman Z-Score Range Over the Past 10 Years
Min: 3.15   Med: 3.97   Max: 6.92
Current: 3.24

During the past 13 years, Seaboard's highest Altman Z-Score was 6.92. The lowest was 3.15. And the median was 3.97.


Seaboard Altman Z-Score Historical Data

The historical data trend for Seaboard'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.

Seaboard Altman Z-Score Chart

Seaboard Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.64 3.46 3.72 3.93 3.30

Seaboard Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 3.91 3.80 4.00 3.30 3.21

Competitive Comparison of Seaboard's Altman Z-Score

For the Conglomerates subindustry, Seaboard'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.


Seaboard's Altman Z-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Seaboard's Altman Z-Score distribution charts can be found below:

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



Seaboard 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.

Seaboard'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*0.271+1.4*0.6658+3.3*0.0265+0.6*1.1265+1.0*1.2213
=3.24

* 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 Mar. 2024:
Total Assets was $7,577 Mil.
Total Current Assets was $3,387 Mil.
Total Current Liabilities was $1,334 Mil.
Retained Earnings was $5,045 Mil.
Pre-Tax Income was 23 + -21 + 93 + 48 = $143 Mil.
Interest Expense was -12 + -17 + -9 + -20 = $-58 Mil.
Revenue was 2191 + 2282 + 2388 + 2393 = $9,254 Mil.
Market Cap (Today) was $3,293 Mil.
Total Liabilities was $2,923 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
=(3387 - 1334)/7577
=0.271

X2=Retained Earnings/Total Assets
=5045/7577
=0.6658

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(143 - -58)/7577
=0.0265

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=3292.847/2923
=1.1265

X5=Revenue/Total Assets
=9254/7577
=1.2213

The zones of discrimination were as such:

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

Seaboard has a Altman Z-Score of 3.24 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.


Seaboard  (AMEX:SEB) 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.


Seaboard Altman Z-Score Related Terms

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


Seaboard (Seaboard) Business Description

Traded in Other Exchanges
Address
9000 West 67th Street, Merriam, KS, USA, 66202
Seaboard Corp is a diversified group of companies that operate in agricultural and ocean transport businesses. The company is engaged in hog production and pork processing in the United States; commodity trading and grain processing in Africa and South America; cargo shipping services in the U.S., Caribbean and Central and South America; sugar and alcohol production in Argentina; and electric power generation in the Dominican Republic. It also has an equity method investment in Butterball, LLC, a producer and processor of turkey products. The group operates six business segments: pork, commodity trading and milling, marine, sugar and alcohol, power, and turkey. It operates in 45 countries, with a concentration in the U.S. and countries in Central and South America and Africa.
Executives
Cerezo Baena Laura P officer: Assistant Secretary 9000 W 67TH STREET, SHAWNEE MISSION KS 66202
Barbara M Smith officer: Interim Controller and PAO 9000 W 67TH STREET, MERRIAM KS 66202
Frances B Shifman director 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Vacas Jacques Emma Alejandra officer: Assistant Treasurer 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
James T Hubler officer: Assoc. Gen Counsel & Asst. Sec 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Benjamin R Hodes officer: Vice President, Finance 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Elizabeth A Loudon officer: Vice President, Tax 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
John B Warner officer: Vice President-Human Resources 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Adriana N Hoskins officer: Vice President and Treasurer 9000 WEST 67TH STREET, MERRIAM KS 66202
Peter B Brown officer: Pres. & CEO, Seaboard Foods 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Jacob A. Bresky officer: Vice Pres-Business Development 9000 WEST 67TH STREET, 3RD FLOOR, SHAWNEE MISSION KS 66202
Ellen S. Bresky director, 10 percent owner 9000 WEST 67TH STREET, 3RD FLOOR, SHAWNEE MISSION KS 66202
Douglas W Baena director
Darwin E Sand officer: Pres. & CEO, Seaboard Foods 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Winfield Ivan J. Jr officer: VP-Information Technology 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202