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USFD (US Foods Holding) Altman Z-Score : 4.23 (As of Oct. 31, 2024)


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What is US Foods Holding 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 4.23 is strong.

US Foods Holding has a Altman Z-Score of 4.23, 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 US Foods Holding's Altman Z-Score or its related term are showing as below:

USFD' s Altman Z-Score Range Over the Past 10 Years
Min: 2.34   Med: 3.33   Max: 4.23
Current: 4.23

During the past 12 years, US Foods Holding's highest Altman Z-Score was 4.23. The lowest was 2.34. And the median was 3.33.


US Foods Holding Altman Z-Score Historical Data

The historical data trend for US Foods Holding'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.

US Foods Holding Altman Z-Score Chart

US Foods Holding 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 3.44 2.57 3.22 3.59 3.99

US Foods Holding 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 3.93 3.79 3.99 4.12 4.09

Competitive Comparison of US Foods Holding's Altman Z-Score

For the Food Distribution subindustry, US Foods Holding'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.


US Foods Holding's Altman Z-Score Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, US Foods Holding's Altman Z-Score distribution charts can be found below:

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



US Foods Holding 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.

US Foods Holding'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*0.0706+1.4*0.1306+3.3*0.0734+0.6*1.7346+1.0*2.6782
=4.23

* 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 $13,703 Mil.
Total Current Assets was $4,334 Mil.
Total Current Liabilities was $3,366 Mil.
Retained Earnings was $1,789 Mil.
Pre-Tax Income was 269 + 87 + 200 + 129 = $685 Mil.
Interest Expense was -81 + -79 + -80 + -81 = $-321 Mil.
Revenue was 9709 + 8949 + 8936 + 9106 = $36,700 Mil.
Market Cap (Today) was $15,077 Mil.
Total Liabilities was $8,692 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
=(4334 - 3366)/13703
=0.0706

X2=Retained Earnings/Total Assets
=1789/13703
=0.1306

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(685 - -321)/13703
=0.0734

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=15077.033/8692
=1.7346

X5=Revenue/Total Assets
=36700/13703
=2.6782

The zones of discrimination were as such:

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

US Foods Holding has a Altman Z-Score of 4.23 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.


US Foods Holding  (NYSE:USFD) 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.


US Foods Holding Altman Z-Score Related Terms

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US Foods Holding Business Description

Traded in Other Exchanges
Address
9399 West Higgins Road, Suite 100, Rosemont, IL, USA, 60018
US Foods Holding Corp is the U.S. food service distributor. us Foods distributes food and nonfood products to the healthcare and hospitality industries, restaurants, and education, government facilities, and grocers. In addition to its delivery business, the firm has 80 cash-and- carry stores under the Chef'Store banner. The company generates majority of the revenue from Meats and seafood products.
Executives
Dirk J. Locascio officer: Chief Financial Officer C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., ROSEMONT IL 60018
David A Rickard officer: See Remarks C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
Scott D. Ferguson director 250 WEST 55TH STREET, 34TH FLOOR, NEW YORK NY 10019
Poe David L Jr officer: EVP, Chief Merchant 9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
Martha Ha officer: EVP, General Counsel 9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
James D Sturgell officer: EVP, Chief Commercial Officer 9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
Randy J Taylor officer: EVP, Field Operations 9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
Andrew E. Iacobucci officer: Chief Merchandising Officer C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., ROSEMONT IL 60018
Steven Guberman officer: Chief Merchandising Officer C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
Kkr Group Co. Inc. 10 percent owner 30 HUDSON YARDS, NEW YORK NY 10001
Kkr Fresh Holdings L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Kkr Group Partnership L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Sunil Gupta director C/O US FOODS HOLDING CORP., 9399 W HIGGINS RD, SUITE 100, ROSEMONT IL 60018
Jay Kvasnicka officer: See Remarks C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
David E Flitman officer: Chief Executive Officer C/O NALCO COMPANY, 1601 WEST DIEHL ROAD, NAPERVILLE IL 60563