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Wynn Resorts (Wynn Resorts) Altman Z-Score

: 1.12 (As of Today)
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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 1.13 is in distress zone. This implies bankruptcy possibility in the next two years.

Wynn Resorts has a Altman Z-Score of 1.12, 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 Wynn Resorts's Altman Z-Score or its related term are showing as below:

WYNN' s Altman Z-Score Range Over the Past 10 Years
Min: 0.38   Med: 1.15   Max: 2.31
Current: 1.13

During the past 13 years, Wynn Resorts's highest Altman Z-Score was 2.31. The lowest was 0.38. And the median was 1.15.


Wynn Resorts Altman Z-Score Historical Data

The historical data trend for Wynn Resorts'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.

Wynn Resorts Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.56 0.38 0.53 0.56 1.08

Wynn Resorts Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 0.56 0.84 0.97 0.96 1.08

Competitive Comparison

For the Resorts & Casinos subindustry, Wynn Resorts'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.


Wynn Resorts Altman Z-Score Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Wynn Resorts's Altman Z-Score distribution charts can be found below:

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



Wynn Resorts 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.

Wynn Resorts'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*0.1458+1.4*-0.1477+3.3*0.0741+0.6*0.7381+1.0*0.4667
=1.12

* 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 Dec. 2023:
Total Assets was $13,996 Mil.
Total Current Assets was $4,242 Mil.
Total Current Liabilities was $2,200 Mil.
Retained Earnings was $-2,067 Mil.
Pre-Tax Income was 274.369 + -123.29 + 132.14 + 2.164 = $285 Mil.
Interest Expense was -184.955 + -188.571 + -190.243 + -187.74 = $-752 Mil.
Revenue was 1840.46 + 1671.936 + 1595.822 + 1423.679 = $6,532 Mil.
Market Cap (Today) was $11,143 Mil.
Total Liabilities was $15,097 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
=(4241.621 - 2200.454)/13996.223
=0.1458

X2=Retained Earnings/Total Assets
=-2066.953/13996.223
=-0.1477

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(285.383 - -751.509)/13996.223
=0.0741

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=11142.805/15097.157
=0.7381

X5=Revenue/Total Assets
=6531.897/13996.223
=0.4667

The zones of discrimination were as such:

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

Wynn Resorts has a Altman Z-Score of 1.12 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.


Wynn Resorts  (NAS:WYNN) 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.


Wynn Resorts Altman Z-Score Related Terms

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Wynn Resorts (Wynn Resorts) Business Description

Traded in Other Exchanges
Address
3131 Las Vegas Boulevard South, Las Vegas, NV, USA, 89109
Wynn Resorts operates luxury casinos and resorts. The company was founded in 2002 by Steve Wynn, the former CEO. The company operates four megaresorts: Wynn Macau and Encore in Macao and Wynn Las Vegas and Encore in Las Vegas. Cotai Palace opened in August 2016 in Macao, and Encore Boston Harbor in Massachusetts opened June 2019. We expect the company to open a new building next to its existing Wynn Palace resort in around 2028. The company also operates Wynn Interactive, a digital sports betting and iGaming platform. The company received 76% and 24% of its 2019 prepandemic EBITDA from Macao and Las Vegas, respectively.
Executives
Julie Cameron-doe officer: CFO C/O WYNN RESORTS, LIMITED, 3131 LAS VEGAS BOULEVARD S., LAS VEGAS NV 89109
Ellen F Whittemore officer: EVP and General Counsel C/O WYNN RESORTS, LIMITED, 3131 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109
Craig Scott Billings officer: CFO and Treasurer C/O WYNN RESORTS, LIMITED, 3131 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109
Patricia Mulroy director C/O WYNN RESORTS LIMITED, 3131 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109
Paul Albert Liu director C/O WYNN RESORTS, 3131 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109
Betsy S Atkins director
Matt Maddox officer: President C/O WYNN RESORTS LTD, 3145 LAS VEGAS BIVD SOUTH, LAS VEGAS NV 89109
Darnell O. Strom director C/O WYNN RESORTS, LIMITED, 3131 LAS VEGAS BOULEVARD S., LAS VEGAS NV 89109
Philip G Satre director
Richard J Byrne director 350 PARK AVENUE, 20TH FLOOR, NEW YORK NY 10022
Robert Jos Miller director 6363 SOUTH FIDDLERS GREEN CIRCLE, GREENWOOD VILLAGE CO 80111
Margaret Jane Myers director C/O WYNN RESORTS, LIMITED, 3131 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109
Winifred Markus Webb director 9330 BALBOA AVE, SAN DIEGO CA 92123
Stephen A Wynn 10 percent owner 3131 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109
Kimmarie Sinatra officer: EVP/General Counsel/Secretary C/O WYNN RESORTS LIMITED, 3131 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109

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