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Dominion Energy (Dominion Energy) Altman Z-Score

: 0.67 (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 0.67 is in distress zone. This implies bankruptcy possibility in the next two years.

Dominion Energy has a Altman Z-Score of 0.67, 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 Dominion Energy's Altman Z-Score or its related term are showing as below:

D' s Altman Z-Score Range Over the Past 10 Years
Min: 0.63   Med: 0.92   Max: 1.17
Current: 0.67

During the past 13 years, Dominion Energy's highest Altman Z-Score was 1.17. The lowest was 0.63. And the median was 0.92.


Dominion Energy Altman Z-Score Historical Data

The historical data trend for Dominion Energy'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.

Dominion Energy 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 0.90 0.78 0.81 0.63 0.65

Dominion Energy 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 0.63 0.64 0.63 0.68 0.65

Competitive Comparison

For the Utilities - Regulated Electric subindustry, Dominion Energy'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.


Dominion Energy Altman Z-Score Distribution

For the Utilities - Regulated industry and Utilities sector, Dominion Energy's Altman Z-Score distribution charts can be found below:

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



Dominion Energy 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.

Dominion Energy'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*0.0084+1.4*0.0323+3.3*0.0466+0.6*0.5122+1.0*0.1503
=0.67

* 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 $109,032 Mil.
Total Current Assets was $25,387 Mil.
Total Current Liabilities was $24,476 Mil.
Retained Earnings was $3,524 Mil.
Pre-Tax Income was 436 + 899 + 707 + 1223 = $3,265 Mil.
Interest Expense was -608 + -192 + -430 + -586 = $-1,816 Mil.
Revenue was 3534 + 3810 + 3794 + 5252 = $16,390 Mil.
Market Cap (Today) was $41,746 Mil.
Total Liabilities was $81,503 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
=(25387 - 24476)/109032
=0.0084

X2=Retained Earnings/Total Assets
=3524/109032
=0.0323

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(3265 - -1816)/109032
=0.0466

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=41745.650/81503
=0.5122

X5=Revenue/Total Assets
=16390/109032
=0.1503

The zones of discrimination were as such:

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

Dominion Energy has a Altman Z-Score of 0.67 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.


Dominion Energy  (NYSE:D) 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.


Dominion Energy Altman Z-Score Related Terms

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Dominion Energy (Dominion Energy) Business Description

Traded in Other Exchanges
Address
120 Tredegar Street, Richmond, VA, USA, 23219
Based in Richmond, Virginia, Dominion Energy is an integrated energy company with over 30 gigawatts of electric generation capacity and more than 90,000 miles of electric transmission and distribution lines. Dominion is constructing a rate-regulated 5.2 GW wind farm off the Virginia Beach coast.
Executives
Diane Leopold other: President - Dominion Energy 120 TREDEGAR STREET, RICHMOND VA 23219
Susan N Story director ONE ENERGY PLACE, PENSCOLA FL 32520
Steven D Ridge officer: SVP & CFO 120 TREDEGAR STREET, RICHMOND VA 23219
Kristin G Lovejoy director 120 TREDEGAR STREET, RICHMOND VA 23219
Robert M Blue officer: Senior Vice President 120 TREDEGAR STREET, RICHMOND VA 23219
William Keller Kissam officer: President - Dominion Energy SC DOMINION ENERGY, 120 TREDEGAR STREET, RICHMOND VA 23219
James R. Chapman officer: SVP, CFO & Treasurer 120 TREDEGAR STREET, RICHMOND VA 23219
Mark J Kington director 100 TREDEGAR STREET, RICHMOND VA 23219
Farrell Thomas F Ii officer: Executive Vice President P O BOX 26532, RICHOMOND VA 23261
Edward H Baine officer: President - Dominion Energy VA 600 CANAL PLACE, RICHMOND VA 23219
Donald R. Raikes officer: President - Gas Distribution 120 TREDEGAR STREET, RICHMOND VA 23219
Paul E Ruppert officer: President-Gas Trans & Storage 5000 DOMINION BOULEVARD, GLEN ALLEN VA 23060
Daniel G. Stoddard officer: SVP and Chief Nuclear Officer 5000 DOMINION BOULEVARD, GLEN ALLEN VA 23060
Michael E Szymanczyk director DOMINION RESOURCES, INC., 100 TREDEGAR STREET, RICHMOND VA 23219
Joseph M Rigby director SOUTH JERSEY INDUSTRIES, 1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037

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