GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Treace Medical Concepts Inc (NAS:TMCI) » Definitions » Altman Z-Score

TMCI (Treace Medical Concepts) Altman Z-Score : 1.40 (As of Sep. 22, 2024)


View and export this data going back to 2021. Start your Free Trial

What is Treace Medical Concepts 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.

Warning Sign:

Altman Z-score of 1.4 is in distress zone. This implies bankruptcy possibility in the next two years.

Treace Medical Concepts has a Altman Z-Score of 1.40, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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 Treace Medical Concepts's Altman Z-Score or its related term are showing as below:

TMCI' s Altman Z-Score Range Over the Past 10 Years
Min: 1.4   Med: 7.92   Max: 26.45
Current: 1.4

During the past 5 years, Treace Medical Concepts's highest Altman Z-Score was 26.45. The lowest was 1.40. And the median was 7.92.


Treace Medical Concepts Altman Z-Score Historical Data

The historical data trend for Treace Medical Concepts'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.

Treace Medical Concepts Altman Z-Score Chart

Treace Medical Concepts Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
- - 13.58 7.92 4.29

Treace Medical Concepts Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 9.84 4.89 4.29 4.11 1.80

Competitive Comparison of Treace Medical Concepts's Altman Z-Score

For the Medical Devices subindustry, Treace Medical Concepts'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.


Treace Medical Concepts's Altman Z-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Treace Medical Concepts's Altman Z-Score distribution charts can be found below:

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



Treace Medical Concepts 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.

Treace Medical Concepts'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*0.5622+1.4*-0.7702+3.3*-0.2586+0.6*2.9692+1.0*0.8781
=1.40

* 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 Jun. 2024:
Total Assets was $226.1 Mil.
Total Current Assets was $171.6 Mil.
Total Current Liabilities was $44.4 Mil.
Retained Earnings was $-174.1 Mil.
Pre-Tax Income was -21.206 + -18.676 + -6.281 + -17.521 = $-63.7 Mil.
Interest Expense was -1.312 + -1.317 + -1.304 + -1.296 = $-5.2 Mil.
Revenue was 44.455 + 51.108 + 62.212 + 40.758 = $198.5 Mil.
Market Cap (Today) was $338.3 Mil.
Total Liabilities was $113.9 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
=(171.552 - 44.446)/226.083
=0.5622

X2=Retained Earnings/Total Assets
=-174.129/226.083
=-0.7702

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-63.684 - -5.229)/226.083
=-0.2586

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=338.316/113.942
=2.9692

X5=Revenue/Total Assets
=198.533/226.083
=0.8781

The zones of discrimination were as such:

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

Treace Medical Concepts has a Altman Z-Score of 1.40 indicating it is in Distress Zones.

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


Treace Medical Concepts  (NAS:TMCI) 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.


Treace Medical Concepts Altman Z-Score Related Terms

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


Treace Medical Concepts Business Description

Traded in Other Exchanges
N/A
Address
100 Palmetto Park Place, Ponte Vedra, FL, USA, 32081
Treace Medical Concepts Inc is a commercial-stage orthopaedic medical device company. It is focused on advancing the standard of care for the surgical management of bunion deformities. The company's patented Lapiplasty 3D Bunion Correction procedure is designed to reproducibly correct all planes of the bunion deformity and address the root cause of the bunion, while allowing patients to return to their active lives quickly. The Company operates and manages its business as one segment, which is the business of designing, manufacturing, and marketing medical devices for physicians, surgeons, ambulatory surgery centers, and hospitals.
Executives
F Barry Bays director
Betsy Hanna director C/O TREACE MEDICAL CONCEPTS, INC., 203 FORT WADE RD #150, PONTE VEDRA BEACH FL 32081
Deepti Jain director 3701 WAYZATA BLVD, MINNEAPOLIS MN 55416
Sean F. Scanlan officer: See Remarks C/O TREACE MEDICAL CONCEPTS, INC., 203 FORT WADE ROAD, SUITE 150, PONTE VEDRA FL 32081
James T Treace director 117 BRISTOL PLACE, PONTE VEDRA BEACH FL 32082
Richard W Mott director 1221 CROSSMAN AVENUE, SUNNYVALE CA 94089
Thomas E Timbie director
Daniel E. Owens officer: Chief HR Officer C/O TREACE MEDICAL CONCEPTS, INC., 203 FORT WADE ROAD, SUITE 150, PONTE VEDRA FL 32081
Scot Michael Elder officer: *See "Remarks" C/O TREACE MEDICAL CONCEPTS, INC., 203 FORT WADE ROAD, SUITE 150, PONTE VEDRA FL 32081
Mark Hair officer: Chief Financial Officer C/O RESTORATION ROBOTICS, INC., 128 BAYTECH DRIVE, SAN JOSE CA 95134
Aaron Berutti officer: Sr. VP, Sales C/O TREACE MEDICAL CONCEPTS, INC., 203 FORT WADE ROAD, SUITE 150, PONTE VEDRA FL 32081
John T. Treace director, 10 percent owner, officer: Chief Executive Officer C/O TREACE MEDICAL CONCEPTS, INC., 203 FORT WADE ROAD, SUITE 150, PONTE VEDRA FL 32081
Lance A Berry director 5677 AIRLINE ROAD, ARLINGTON TN 38002
Jane E Kiernan director 525 W ROSCOE, CHICAGO IL 60657
John R Treace director 5677 AIRLINE RD, ARLINGTON VA 38002

Treace Medical Concepts Headlines

From GuruFocus