Switch to:
Stanley Furniture Co Inc  (NAS:STLY) Altman Z-Score: 2.51 (As of Today)

Stanley Furniture Co Inc has a Z-score of 2.51, indicating it is in Grey Zones. This implies that Stanley Furniture Co Inc is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

NAS:STLY' s Altman Z-Score Range Over the Past 10 Years
Min: 2.01   Max: 7.51
Current: 2.54

2.01
7.51

During the past 13 years, Stanley Furniture Co Inc's highest Altman Z-Score was 7.51. The lowest was 2.01. And the median was 3.87.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Stanley Furniture Co Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.05 3.70 3.26 4.17 2.26

Stanley Furniture Co Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 3.23 2.26 2.39 2.56 2.70

Competitive Comparison
* 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.


Calculation

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.

Stanley Furniture Co Inc'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*0.6352+1.4*0.1263+3.3*-0.0279+0.6*0.7906+1.0*1.1933
=2.51

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Trailing Twelve Months (TTM) ended in Sep. 2017:
Total Assets was $36.06 Mil.
Total Current Assets was $31.92 Mil.
Total Current Liabilities was $9.01 Mil.
Retained Earnings was $4.56 Mil.
Pre-Tax Income was -0.337 + 0.012 + -0.417 + -0.265 = $-1.01 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 10.427 + 11.615 + 11.19 + 9.802 = $43.03 Mil.
Market Cap (M) (Today) was $13.12 Mil.
Total Liabilities was $16.60 Mil.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(31.919 - 9.012)/36.063
=0.6352

X2=Retained Earnings/Total Assets
=4.556/36.063
=0.1263

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income + Interest Expense)/Total Assets
=(-1.007 + 0)/36.063
=-0.0279

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap (M)/Total Liabilities
=13.120/16.596
=0.7906

X5=Revenue/Total Assets
=43.034/36.063
=1.1933

The zones of discrimination were as such:

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

Stanley Furniture Co Inc has a Z-score of 2.51 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


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

Z score does not apply to financial companies.


Related Terms


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK