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FLS (Flowserve) Altman Z-Score : 3.81 (As of Oct. 31, 2024)


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What is Flowserve 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 3.84 is strong.

Flowserve has a Altman Z-Score of 3.81, 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 Flowserve's Altman Z-Score or its related term are showing as below:

FLS' s Altman Z-Score Range Over the Past 10 Years
Min: 2.7   Med: 3.46   Max: 4.38
Current: 3.84

During the past 13 years, Flowserve's highest Altman Z-Score was 4.38. The lowest was 2.70. And the median was 3.46.


Flowserve Altman Z-Score Historical Data

The historical data trend for Flowserve'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.

Flowserve Altman Z-Score Chart

Flowserve 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 3.66 3.04 3.10 3.12 3.42

Flowserve 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 3.45 3.42 3.59 3.71 3.79

Competitive Comparison of Flowserve's Altman Z-Score

For the Specialty Industrial Machinery subindustry, Flowserve'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.


Flowserve's Altman Z-Score Distribution in the Industrial Products Industry

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

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



Flowserve 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.

Flowserve'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*0.271+1.4*0.7538+3.3*0.0792+0.6*2.1822+1.0*0.8612
=3.81

* 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 $5,275 Mil.
Total Current Assets was $2,870 Mil.
Total Current Liabilities was $1,440 Mil.
Retained Earnings was $3,976 Mil.
Pre-Tax Income was 82.088 + 100.298 + 98.057 + 71.435 = $352 Mil.
Interest Expense was -16.587 + -16.917 + -15.317 + -16.885 = $-66 Mil.
Revenue was 1133.087 + 1156.892 + 1087.479 + 1165.178 = $4,543 Mil.
Market Cap (Today) was $6,916 Mil.
Total Liabilities was $3,169 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
=(2869.787 - 1440.366)/5274.558
=0.271

X2=Retained Earnings/Total Assets
=3976.016/5274.558
=0.7538

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(351.878 - -65.706)/5274.558
=0.0792

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=6915.553/3169.037
=2.1822

X5=Revenue/Total Assets
=4542.636/5274.558
=0.8612

The zones of discrimination were as such:

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

Flowserve has a Altman Z-Score of 3.81 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.


Flowserve  (NYSE:FLS) 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.


Flowserve Altman Z-Score Related Terms

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


Flowserve Business Description

Traded in Other Exchanges
Address
5215 North O’Connor Boulevard, Suite 700, Irving, TX, USA, 75039
Flowserve Corp is a manufacturer and aftermarket service provider of comprehensive flow control systems. It develops precision-engineered flow control equipment to monitor movement and protect customers' materials and processes. It offers an extensive range of pumps, valves, seals, and services for several industries, including oil and gas, chemical, power generation, and water management. In addition, Flowserve has a network of Quick Response Centers to provide aftermarket equipment services. The aftermarket services help customers with installation, diagnostics, repair, and retrofitting. Sales are roughly split across many regions, with North America and Europe contributing the majority of total revenue.
Executives
Robert Scott Rowe officer: President & CEO 1333 WEST LOOP SOUTH, SUITE 1700, HOUSTON TX 77027
Kirk Wilson officer: President, AMSS 5215 NORTH O'CONNOR BLVD #2300, IRVING TX 75039
Thomas B Okray director 5008 AIRPORT ROAD NW, ROANOKE VA 24012
Kenneth I Siegel director 667 MADISON AVENUE, NEW YORK NY 10065
Susan Claire Hudson officer: Chief Legal Officer 5215 N O CONNOR BLVD, # 700, IRVING TX 75039
Lamar L. Duhon officer: President, AMSS 5215 N. O'CONNOR BLVD., SUITE 700, IRVING TX 75039
Tamara Morytko officer: President, FPD 1250 NE LOOP 410, SUITE 1000, SAN ANTONIO TX 78209
Carlyn R. Taylor director 5215 N. O'CONNOR BLVD., SUITE 2300, IRVING TX 75039
Scott K Vopni officer: Chief Accounting Officer 2711 NORTH HASKELL AVENUE, SUITE 3400, DALLAS TX 75204
Sanjay Chowbey officer: President, AMSS 525 WILLIAM PENN PLACE, SUITE 3300, PITTSBURGH PA 15219
Amy B Schwetz officer: Chief Financial Officer 701 MARKET STREET, ST. LOUIS MO 63101
Sujeet Chand director ROCKWELL AUTOMATION, INC., 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Lanesha Minnix officer: SVP, Chief Legal Officer TWO LAKESIDE COMMONS, BUILDING TWO, 980 HAMMOND DRIVE, SUITE 500, ATLANTA GA 30328
John Lenander officer: President, FCO 5215 NORTH O'CONNOR BLVD SUITE 2300, IRVING TX 75039
Garrison John L Jr director C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880

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