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ESP (Espey Manufacturing & Electronics) Altman Z-Score : 5.99 (As of Oct. 31, 2024)


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What is Espey Manufacturing & Electronics 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.

Good Sign:

Altman Z-score of 5.89 is strong.

Espey Manufacturing & Electronics has a Altman Z-Score of 5.99, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

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 Espey Manufacturing & Electronics's Altman Z-Score or its related term are showing as below:

ESP' s Altman Z-Score Range Over the Past 10 Years
Min: 4.67   Med: 8.8   Max: 21.08
Current: 5.89

During the past 13 years, Espey Manufacturing & Electronics's highest Altman Z-Score was 21.08. The lowest was 4.67. And the median was 8.80.


Espey Manufacturing & Electronics Altman Z-Score Historical Data

The historical data trend for Espey Manufacturing & Electronics'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.

Espey Manufacturing & Electronics Altman Z-Score Chart

Espey Manufacturing & Electronics Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.08 5.03 5.16 4.69 4.67

Espey Manufacturing & Electronics 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 4.69 4.39 4.88 5.28 4.67

Competitive Comparison of Espey Manufacturing & Electronics's Altman Z-Score

For the Electrical Equipment & Parts subindustry, Espey Manufacturing & Electronics'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.


Espey Manufacturing & Electronics's Altman Z-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Espey Manufacturing & Electronics's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Espey Manufacturing & Electronics's Altman Z-Score falls into.



Espey Manufacturing & Electronics 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.

Espey Manufacturing & Electronics'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*0.6715+1.4*0.4599+3.3*0.129+0.6*5.7174+1.0*0.6851
=5.99

* 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 $56.54 Mil.
Total Current Assets was $53.24 Mil.
Total Current Liabilities was $15.27 Mil.
Retained Earnings was $26.01 Mil.
Pre-Tax Income was 2.374 + 1.278 + 2.26 + 1.383 = $7.30 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 11.611 + 8.255 + 10.303 + 8.568 = $38.74 Mil.
Market Cap (Today) was $87.30 Mil.
Total Liabilities was $15.27 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
=(53.237 - 15.269)/56.543
=0.6715

X2=Retained Earnings/Total Assets
=26.005/56.543
=0.4599

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(7.295 - 0)/56.543
=0.129

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=87.299/15.269
=5.7174

X5=Revenue/Total Assets
=38.737/56.543
=0.6851

The zones of discrimination were as such:

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

Espey Manufacturing & Electronics has a Altman Z-Score of 5.99 indicating it is in Safe Zones.

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


Espey Manufacturing & Electronics  (AMEX:ESP) 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.


Espey Manufacturing & Electronics Altman Z-Score Related Terms

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Espey Manufacturing & Electronics Business Description

Traded in Other Exchanges
N/A
Address
233 Ballston Avenue, Saratoga Springs, NY, USA, 12866
Espey Manufacturing & Electronics Corp designs, develops, tests, and manufactures specialized military and rugged industrial power supplies and transformers for use in harsh or severe environment applications. Its products and solutions include power converters, power conditioning, high-voltage radar, contract manufacturing, custom engineering, and others. The applications of these products include AC and DC locomotives, shipboard power, shipboard radar, airborne power, ground-based radar, and ground mobile power.
Executives
Peggy A Murphy officer: Corporate Secretary 91 FEEDER DAM RD, S GLENSFALLS NY 12803
Nancy Koskey Patzwahl director 81 OLD LANE, CLAVERACK NY 12513
Katrina Leonore Sparano officer: Assistant Treasurer 670 ACLAND BLVD., BALLSTON SPA NY 12020
Howard M Pinsley director, officer: President/CEO, other: Chairman of the Board 233 BALLSTON AVE., SARATOGA SPRINGS NY 12866
Barry Pinsley director 6101 PELICAN BAY BLVD., NAPLES FL 34108
Alvin O Sabo director 51 ISLAND VIEW ROAD, COHOES NY 12047
Paul J Corr director 87 RAILROAD PLACE, UNIT 306, SARATOGA SPRINGS NY 12866
David A Oneil officer: Treasurer 14 BRIDGET CIRCLE, COHOES NY 12047
Sexauer Roger Nicholas Ii director 2820 BENNETT POINT RD., QUEENSTOWN MD 21658
Carl Helmetag director 330 SEA VIEW, RIVERSIDE RI 02915
Enright Patrick Thomas Jr. director, officer: President and CEO 3111 SQUAW CREEK TRAIL, BALLSTON SPA NY 12020
Michael W Wool director 131 HILLS POINT RD, CHARLOTTE VT 05402
St Pierre Mark Francis officer: President 13 SECLUDED RIDGE, SOUTHWICK MA 01077
Espey Mfg. & Electronics Corp. Employee Retirement Plan & Trust 10 percent owner, other: Retirement Plan Trust 233 BALLSTON AVE., SARATOGA SPRINGS NY 12866
Seymour Saslow director 199 CAROLINE ST, SARATOGA SPRINGS NY 12866