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.
Sirona Dental Systems has a Altman Z-Score of 9.50, 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 Sirona Dental Systems's Altman Z-Score or its related term are showing as below:
Sirona Dental Systems Altman Z-Score Historical Data
The historical data trend for Sirona Dental Systems'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.
Competitive Comparison of Sirona Dental Systems's Altman Z-Score
For the Medical Instruments & Supplies subindustry, Sirona Dental Systems'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.
Sirona Dental Systems's Altman Z-Score Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Sirona Dental Systems's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Sirona Dental Systems's Altman Z-Score falls into.
Sirona Dental Systems 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.
* 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.
Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones
Sirona Dental Systems has a Altman Z-Score of 9.50 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.
Sirona Dental Systems (NAS:SIRO) 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.
Altman Z-Score does not apply to financial companies.
Sirona Dental Systems Altman Z-Score Related Terms
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Sirona Dental Systems (Sirona Dental Systems) Business Description
Sirona Dental Systems Inc was founded in 1997 and completed an initial public offering of its common stock on July 1, 1997. The Company is a manufacturer of high-quality, dental equipment, and is engaged in developing, manufacturing and marketing solutions for dentists around the world. The Company provides products in each of its four product segments: Dental CAD/CAM Systems; Imaging Systems; Treatment Centers; and Instruments. The Company markets its products globally to dental practices, clinics and laboratories through an international network of distributors. The dental market encompasses the diagnosis, treatment and prevention of disease and ailments of the teeth, gums and supporting bone. Recent technological advancements in the dental equipment industry include 3D radiography, digital radiography, CAD/CAM technology, intra oral cameras and periodontal instruments. The market it serves comprises the whole working environment of a dentist or dental technician, including the dentist's chair, lights, imaging systems and dental CAD/CAM systems, instruments, as well as practice furniture and other dental or lab-based systems. Dental CAD/CAM Systems address the market for dental restorations, which includes several types of restorations, such as inlays, onlays, veneers, crowns, bridges, copings and bridge frameworks made from ceramic, metal or composite blocks. The Company has developed a range of imaging systems for 2D and 3D, panoramic and intra-oral applications that allow the dentist to accommodate the patient in a more efficient manner. Treatment Centers comprise products from basic dentist chairs to sophisticated chair-based units with integrated diagnostic, hygiene and ergonomic functionalities, as well as specialist centers used in preventative treatment and for training purposes. In July 2008, the Company launched its new TENEO Treatment Center, which combines technology with a timeless design that provides both patient and dentist with the ultimate in convenience and comfort. The Company offers a range of instruments, including handheld and power-operated handpieces for cavity preparation, endodontics, periodontology and prophylaxis. The instruments are supplemented by multi-function tips, supply and suction hoses, as well as care and hygiene systems for instrument preparation. Its product information is actively made available to business publications, dentists, journals, professional organizations and dental schools, and its website. Sirona distributes its products globally to dental practices, clinics and laboratories through an international network of more than 480 distributors. The Companys registered trademarks include, Sirona, CEREC, Orthophos, Heliodent, inLab, CDR, and Schick. It competes with different companies which include international companies as well as smaller companies that compete regionally or on a narrower product line. The Company is subject to government regulations applicable to all businesses
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