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Dana (DAN) Altman Z-Score : 1.81 (As of Oct. 31, 2024)


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What is Dana 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 1.86 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Dana has a Altman Z-Score of 1.81, indicating it is in Grey Zones. This implies that Dana is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

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 Dana's Altman Z-Score or its related term are showing as below:

DAN' s Altman Z-Score Range Over the Past 10 Years
Min: 1.56   Med: 2.01   Max: 2.5
Current: 1.86

During the past 13 years, Dana's highest Altman Z-Score was 2.50. The lowest was 1.56. And the median was 2.01.


Dana Altman Z-Score Historical Data

The historical data trend for Dana'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.

Dana Altman Z-Score Chart

Dana 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 1.98 1.65 2.04 1.91 1.95

Dana Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 2.00 1.95 1.96 1.91 -

Competitive Comparison of Dana's Altman Z-Score

For the Auto Parts subindustry, Dana'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.


Dana's Altman Z-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Dana's Altman Z-Score distribution charts can be found below:

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



Dana 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.

Dana'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*0.1703+1.4*0.036+3.3*0.0364+0.6*0.182+1.0*1.3288
=1.81

* 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 Sep. 2024:
Total Assets was $7,859 Mil.
Total Current Assets was $4,054 Mil.
Total Current Liabilities was $2,716 Mil.
Retained Earnings was $283 Mil.
Pre-Tax Income was 52 + 67 + 35 + -26 = $128 Mil.
Interest Expense was -40 + -39 + -39 + -40 = $-158 Mil.
Revenue was 2476 + 2738 + 2735 + 2494 = $10,443 Mil.
Market Cap (Today) was $1,112 Mil.
Total Liabilities was $6,111 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
=(4054 - 2716)/7859
=0.1703

X2=Retained Earnings/Total Assets
=283/7859
=0.036

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(128 - -158)/7859
=0.0364

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1111.988/6111
=0.182

X5=Revenue/Total Assets
=10443/7859
=1.3288

The zones of discrimination were as such:

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

Dana has a Altman Z-Score of 1.81 indicating it is in Grey Zones.

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


Dana  (NYSE:DAN) 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.


Dana Altman Z-Score Related Terms

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


Dana Business Description

Traded in Other Exchanges
Address
3939 Technology Drive, Maumee, OH, USA, 43537
Dana Inc is engaged in the designing and manufacturing of efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The company has four operating segments: Light Vehicles, Power Technologies, Commercial Vehicle, and Off-Highway. The Light Vehicles segment generates the majority portion of revenue by providing products to support light vehicle OEMs. Its products are designed for light trucks, SUVs, CUVs, vans, and passenger cars.
Executives
James D Kellett officer: VP & Chief Accounting Officer 3946 WRENS NEST BLVD, MAUMEE OH 43537
Jeroen Decleer officer: SVP & Pres Off-Highway Drive GEMENEWEIDEWEG-NOORD 18, BRUGGE C9 8310
Aziz Aghili officer: Pres Off-Hwy Technologies & AP 5706 KIRKRIDGE TRAIL, ROCHESTER HILLS MI 48306
James Kevin Kamsickas director, officer: President & CEO 44011 CYPRESS POINT DRIVE, NORTHVILLE MI 48168
Byron S Foster officer: Pres, Light Veh Drive Systems 30 ISABELLA ST., PITTSBURGH PA 15212
Brett Icahn director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Gaoxiang Hu director 16690 COLLINS AVE., SUITE PH-1, SUNNY ISLES BEACH FL 33160
Ernesto M Hernandez director C/O CONSTELLATION BRANDS, INC., 207 HIGH POINT DRIVE, BLDG. 100, VICTOR NY 14564
Timothy R Kraus officer: SVP & Chief Financial Officer 812, PILGRAM AVENUE, BIRMINGHAM MI 48009
Robert D Pyle officer: Pres, Light Vehicle Driveline 3939 TECHNOLOGY DRIVE, MAUMEE OH 43537
Jonathan Mark Collins officer: SVP & Chief Financial Officer 50196 VENICE COURT, NORTHVILLE MI 48168
Ryan Laskey officer: SVP - Commercial Veh Drive 9332 CRISTAL MARIE CT, TEMPERANCE MI 48182
Antonio Valencia officer: Pres. Power Technologies Group 3939 TECHNOLOGY DRIVE, MAUMEE OH 43537
Keith E Wandell director
Bridget E Karlin director 3 TALL TREE LANE, PLEASANTVILLE NY 10570