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APA (APA) Altman Z-Score : 1.17 (As of Oct. 31, 2024)


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What is APA 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 1.17 is in distress zone. This implies bankruptcy possibility in the next two years.

APA has a Altman Z-Score of 1.17, 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 APA's Altman Z-Score or its related term are showing as below:

APA' s Altman Z-Score Range Over the Past 10 Years
Min: -2.49   Med: 0.89   Max: 2.46
Current: 1.17

During the past 13 years, APA's highest Altman Z-Score was 2.46. The lowest was -2.49. And the median was 0.89.


APA Altman Z-Score Historical Data

The historical data trend for APA'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.

APA Altman Z-Score Chart

APA 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 -0.12 -1.65 0.60 2.46 1.54

APA Quarterly Data
Sep19 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 Premium Member Only 1.63 1.67 1.54 1.49 1.27

Competitive Comparison of APA's Altman Z-Score

For the Oil & Gas E&P subindustry, APA'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.


APA's Altman Z-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, APA's Altman Z-Score distribution charts can be found below:

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



APA 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.

APA'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*0.0014+1.4*-0.1132+3.3*0.1529+0.6*0.6371+1.0*0.4441
=1.17

* 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 $20,195 Mil.
Total Current Assets was $2,918 Mil.
Total Current Liabilities was $2,889 Mil.
Retained Earnings was $-2,286 Mil.
Pre-Tax Income was 928 + 447 + 540 + 833 = $2,748 Mil.
Interest Expense was -101 + -78 + -79 + -82 = $-340 Mil.
Revenue was 2543 + 1951 + 2167 + 2308 = $8,969 Mil.
Market Cap (Today) was $8,728 Mil.
Total Liabilities was $13,700 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
=(2918 - 2889)/20195
=0.0014

X2=Retained Earnings/Total Assets
=-2286/20195
=-0.1132

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2748 - -340)/20195
=0.1529

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=8727.904/13700
=0.6371

X5=Revenue/Total Assets
=8969/20195
=0.4441

The zones of discrimination were as such:

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

APA has a Altman Z-Score of 1.17 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.


APA  (NAS:APA) 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.


APA Altman Z-Score Related Terms

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


APA Business Description

Address
2000 Post Oak Boulevard, Suite 100, One Post Oak Central, Houston, TX, USA, 77056-4400
Based in Houston, APA is an independent exploration and production company. It operates primarily in the US, Egypt, the North Sea, and Suriname. At year-end 2023, proved reserves totaled 807 million barrels of oil equivalent, with net reported production of 405 thousand boe/day that year (64% of which was oil and natural gas liquids, with the remainder natural gas).
Executives
Tracey K Henderson officer: Executive VP Exploration C/O APA CORPORATION, 2000 POST OAK BLVD STE 100, HOUSTON TX 77056
Mark D Maddox officer: Executive VP - Administration C/O APA CORPORATION, 2000 POST OAK BLVD STE 100, HOUSTON TX 77056
P Anthony Lannie officer: Exec. Vice Pres & Gen Counsel C/O APACHE CORPORATION, 2000 POST OAK BLVD., SUITE 100, HOUSTON TX 77056
Chansoo Joung director C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
David L Stover director NOBLE ENERGY, INC., 1001 NOBLE ENERGY WAY, HOUSTON TX 77070
Charles W Hooper director C/O APA CORPORATION, 2000 POST OAK BLVD STE 100, HOUSTON TX 77056
D. Clay Bretches officer: Exec. VP, Operations C/O APACHE CORPORATION, 2000 POST OAK BLVD, STE 100, HOUSTON TX 77056
Rebecca A Hoyt officer: Sr. VP, Chief Acct Officer C/O APACHE CORPORATION, 2000 POST OAK BLVD., SUITE 100, HOUSTON TX 77056-4400
Annell R Bay director C/O MARATHON OIL CORPORATION, 5555 SAN FELIPE ST, HOUSTON TX 77056
Lamar Mckay director 2000 POST OAK BLVD STE 100, HOUSTON TX 77056
John E Lowe director 600 N DAIRY ASHFORD, HOUSTON TX 77079
Amy H Nelson director 2000 POST OAK BLVD., SUITE 100, HOUSTON TX 77056
Rene R Joyce director P.O. BOX 130430, HOUSTON TX 77219-0430
Daniel Wayne Rabun director 6 CHESTERFIELD GARDENS, 3RD FLOOR, LONDON X0 W1J 5BQ
Peter A Ragauss director 2929 ALLEN PARKWAY, SUITE 2100, HOUSTON TX 77019