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APLE (Apple Hospitality REIT) Altman Z-Score : 1.23 (As of Oct. 31, 2024)


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What is Apple Hospitality REIT 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 1.27 is in distress zone. This implies bankruptcy possibility in the next two years.

Apple Hospitality REIT has a Altman Z-Score of 1.23, 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 Apple Hospitality REIT's Altman Z-Score or its related term are showing as below:

APLE' s Altman Z-Score Range Over the Past 10 Years
Min: -0.04   Med: 1.37   Max: 2.3
Current: 1.27

During the past 13 years, Apple Hospitality REIT's highest Altman Z-Score was 2.30. The lowest was -0.04. And the median was 1.37.


Apple Hospitality REIT Altman Z-Score Historical Data

The historical data trend for Apple Hospitality REIT'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.

Apple Hospitality REIT Altman Z-Score Chart

Apple Hospitality REIT 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 1.37 0.57 1.17 1.33 1.50

Apple Hospitality REIT 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 1.30 1.34 1.50 1.41 1.22

Competitive Comparison of Apple Hospitality REIT's Altman Z-Score

For the REIT - Hotel & Motel subindustry, Apple Hospitality REIT'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.


Apple Hospitality REIT's Altman Z-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Apple Hospitality REIT's Altman Z-Score distribution charts can be found below:

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



Apple Hospitality REIT 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.

Apple Hospitality REIT'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*-0.0318+1.4*-0.2915+3.3*0.0552+0.6*2.0407+1.0*0.2739
=1.23

* 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 $5,075 Mil.
Total Current Assets was $101 Mil.
Total Current Liabilities was $263 Mil.
Retained Earnings was $-1,479 Mil.
Pre-Tax Income was 74.145 + 54.306 + 21.026 + 58.825 = $208 Mil.
Interest Expense was -19.37 + -17.309 + -17.884 + -17.47 = $-72 Mil.
Revenue was 390.077 + 329.512 + 312.456 + 358.26 = $1,390 Mil.
Market Cap (Today) was $3,556 Mil.
Total Liabilities was $1,742 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
=(101.413 - 262.763)/5075.4
=-0.0318

X2=Retained Earnings/Total Assets
=-1479.359/5075.4
=-0.2915

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(208.302 - -72.033)/5075.4
=0.0552

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=3555.774/1742.43
=2.0407

X5=Revenue/Total Assets
=1390.305/5075.4
=0.2739

The zones of discrimination were as such:

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

Apple Hospitality REIT has a Altman Z-Score of 1.23 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.


Apple Hospitality REIT  (NYSE:APLE) 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.


Apple Hospitality REIT Altman Z-Score Related Terms

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Apple Hospitality REIT Business Description

Traded in Other Exchanges
Address
814 East Main Street, Richmond, VA, USA, 23219
Apple Hospitality REIT Inc is a real estate investment trust that invests in income-producing real estate, majorly in the lodging sector, in the United States. It chiefly invests in upscale service hotels. All of the company's hotels operate under the Marriott or Hilton brands. Apple Hospitality has wholly-owned taxable REIT subsidiaries, which lease all of the company's hotels from wholly-owned qualified REIT subsidiaries. These hotels are managed under separate agreements with various hotel management companies that are unaffiliated with Apple Hospitality. The company derives its income from hotel revenue, its sole segment.
Executives
Redd Hugh director C/O GENERAL DYNAMICS CORPORATION, 2941 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Glade M Knight director, officer: Executive Chairman 306 E MAINS T, RICHMOND VA 23219
Bunting Glenn W Jr director 1551 NORTH TUSTIN AVENUE, SUITE 200, SANTA ANA CA 92705
Howard E. Woolley director C/O APPLE HOSPITALITY REIT, INC., 814 EAST MAIN STREET, RICHMOND VA 23219
Elizabeth Perkins officer: SVP & Chief Financial Officer C/O APPLE HOSPITALITY REIT, INC., 814 EAST MAIN STREET, RICHMOND VA 23219
Justin G Knight director, officer: CEO 10 S THIRD ST, RICHMOND VA 23219
Nelson Knight officer: President Real Estate & Invest 814 E MAIN STREET, RICHMOND VA 23219
Blythe J Mcgarvie director HANNAFORD BROS CO, 145 PLEASANT HILL RD, SCARBOROUGH ME 04074
Kristian M Gathright director 10 S THIRD ST, RICHMOND VA 23219
Carolyn B Handlon director 1555 PEACHTREE ST. NE, SUITE 1800, ATLANTA GA 30309
Jon A Fosheim director DIGITALBRIDGE GROUP, INC., 750 PARK OF COMMERCE DRIVE, SUITE 210, BOCA RATON FL 33487
Matthew Rash officer: SVP & Chief Legal Officer C/O APPLE HOSPITALITY REIT, INC., 814 EAST MAIN STREET, RICHMOND VA 23219
Rachel Labrecque officer: SVP & Chief Accounting Officer C/O APPLE HOSPITALITY REIT, INC., 814 EAST MAIN STREET, RICHMOND VA 23219
Jeanette Clarke officer: SVP Chief Cap. Invest. Officer C/O APPLE HOSPITALITY REIT, INC., 814 EAST MAIN STREET, RICHMOND VA 23219
Karen Catherine Gallagher officer: SVP & Chief Operating Officer C/O APPLE HOSPITALITY REIT, INC., 814 EAST MAIN STREET, RICHMOND VA 23219