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Patterson-UTI Energy (Patterson-UTI Energy) Altman Z-Score : 1.85 (As of Apr. 27, 2024)


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What is Patterson-UTI Energy 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 1.85 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.

Patterson-UTI Energy has a Altman Z-Score of 1.85, indicating it is in Grey Zones. This implies that Patterson-UTI Energy 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 Patterson-UTI Energy's Altman Z-Score or its related term are showing as below:

PTEN' s Altman Z-Score Range Over the Past 10 Years
Min: 0.19   Med: 1.73   Max: 2.59
Current: 1.85

During the past 13 years, Patterson-UTI Energy's highest Altman Z-Score was 2.59. The lowest was 0.19. And the median was 1.73.


Patterson-UTI Energy Altman Z-Score Historical Data

The historical data trend for Patterson-UTI 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.

Patterson-UTI Energy Altman Z-Score Chart

Patterson-UTI Energy 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 1.44 0.19 0.48 2.59 1.83

Patterson-UTI 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 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 2.59 2.47 2.67 2.03 1.83

Competitive Comparison of Patterson-UTI Energy's Altman Z-Score

For the Oil & Gas Drilling subindustry, Patterson-UTI 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.


Patterson-UTI Energy's Altman Z-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Patterson-UTI Energy's Altman Z-Score distribution charts can be found below:

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



Patterson-UTI 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.

Patterson-UTI 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*0.0587+1.4*0.0077+3.3*0.0485+0.6*1.7453+1.0*0.5588
=1.85

* 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 $7,420 Mil.
Total Current Assets was $1,486 Mil.
Total Current Liabilities was $1,050 Mil.
Retained Earnings was $57 Mil.
Pre-Tax Income was 93.27 + -4.408 + 98.379 + 119.863 = $307 Mil.
Interest Expense was -18.681 + -15.625 + -9.738 + -8.826 = $-53 Mil.
Revenue was 1584.317 + 1011.452 + 758.885 + 791.802 = $4,146 Mil.
Market Cap (Today) was $4,537 Mil.
Total Liabilities was $2,599 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
=(1485.698 - 1050.435)/7420.031
=0.0587

X2=Retained Earnings/Total Assets
=57.035/7420.031
=0.0077

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(307.104 - -52.87)/7420.031
=0.0485

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=4536.584/2599.35
=1.7453

X5=Revenue/Total Assets
=4146.456/7420.031
=0.5588

The zones of discrimination were as such:

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

Patterson-UTI Energy has a Altman Z-Score of 1.85 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.


Patterson-UTI Energy  (NAS:PTEN) 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.


Patterson-UTI Energy Altman Z-Score Related Terms

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Patterson-UTI Energy (Patterson-UTI Energy) Business Description

Traded in Other Exchanges
Address
10713 West Sam Houston Parkway North, Suite 800, Houston, TX, USA, 77064
Patterson-UTI Energy is one of the largest land rig drilling contractors in the United States and maintains moderately sized pressure-pumping operations primarily in Texas and the Appalachian region, plus some modest operations in Colombia. It also provides directional drilling services and tool rental services in most U.S. onshore oil and gas basins.
Executives
Tiffany Thom Cepak director C/O PATTERSON-UTI ENERGY, INC., 10713 WEST SAM HOUSTON PARKWAY NORTH, SU, HOUSTON TX 77064
Charles Andrew Smith officer: EVP & Chief Financial Officer 13627 COMELY LANE, HOUSTON TX 77079
Seth David Wexler officer: GENERAL COUNSEL AND SECRETARY 450 GEARS ROAD, SUITE 500, HOUSTON TX 77067
James Carl Stewart director 1800 POST OAK BLVD., SUITE 450, HOUSTON TX 77056
James Michael Holcomb officer: President-Drilling Subsidiary 450 GEARS ROAD, SUITE 500, HOUSTON TX 77067
Amy H Nelson director 2000 POST OAK BLVD., SUITE 100, HOUSTON TX 77056
Drummond Robert Wayne Jr director 1301 MCKINNEY ST, STE 1800, HOUSTON TX 77010
Leslie Ann Beyer director C/O NATURAL GAS SERVICES GROUP., INC., 404 VETERANS AIRPARK LANE, SUITE 300, MIDLAND TX 79705
Gary M. Halverson director 1333 WEST LOOP SOUTH, SUITE 1700, HOUSTON TX 77027
Matthew Gillard officer: President-Completions 3990 ROGERDALE RD., HOUSTON TX 77042
Blackstone Management Associates Vii L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Bcp Vii/bep Ii Holdings Manager L.l.c. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Blackstone Energy Management Associates Ii L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Bep Diamond Aggregator L.p. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Blackstone Ema Ii L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154