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Vital Farms (Vital Farms) Altman Z-Score : 13.62 (As of May. 12, 2024)


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What is Vital Farms 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 13.62 is strong.

Vital Farms has a Altman Z-Score of 13.62, 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 Vital Farms's Altman Z-Score or its related term are showing as below:

VITL' s Altman Z-Score Range Over the Past 10 Years
Min: 6.44   Med: 9.43   Max: 29.17
Current: 13.62

During the past 7 years, Vital Farms's highest Altman Z-Score was 29.17. The lowest was 6.44. And the median was 9.43.


Vital Farms Altman Z-Score Historical Data

The historical data trend for Vital Farms'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.

Vital Farms Altman Z-Score Chart

Vital Farms Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial - 23.04 13.55 8.80 7.59

Vital Farms Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 9.01 7.78 7.16 7.59 9.76

Competitive Comparison of Vital Farms's Altman Z-Score

For the Farm Products subindustry, Vital Farms'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.


Vital Farms's Altman Z-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Vital Farms's Altman Z-Score distribution charts can be found below:

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



Vital Farms 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.

Vital Farms'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*0.4924+1.4*0.1624+3.3*0.1604+0.6*17.6809+1.0*1.6678
=13.62

* 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 Mar. 2024:
Total Assets was $300.2 Mil.
Total Current Assets was $218.2 Mil.
Total Current Liabilities was $70.4 Mil.
Retained Earnings was $48.7 Mil.
Pre-Tax Income was 24.725 + 9.561 + 5.056 + 7.912 = $47.3 Mil.
Interest Expense was -0.255 + -0.269 + -0.238 + -0.136 = $-0.9 Mil.
Revenue was 147.929 + 135.811 + 110.429 + 106.445 = $500.6 Mil.
Market Cap (Today) was $1,535.7 Mil.
Total Liabilities was $86.9 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
=(218.17 - 70.368)/300.158
=0.4924

X2=Retained Earnings/Total Assets
=48.748/300.158
=0.1624

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(47.254 - -0.898)/300.158
=0.1604

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1535.659/86.854
=17.6809

X5=Revenue/Total Assets
=500.614/300.158
=1.6678

The zones of discrimination were as such:

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

Vital Farms has a Altman Z-Score of 13.62 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.


Vital Farms  (NAS:VITL) 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.


Vital Farms Altman Z-Score Related Terms

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Vital Farms (Vital Farms) Business Description

Traded in Other Exchanges
Address
3601 South Congress Avenue, Suite C100, Austin, TX, USA, 78704
Vital Farms Inc is an ethical food company. The company retails pasture-raised eggs and butter. Its products include Pasture-Raised Eggs and Pasture-Raised Butter & Ghee. The company's purpose is rooted in a commitment to Conscious Capitalism, which prioritizes the long-term benefits of each of its stakeholders (farmers and suppliers, customers and consumers, communities and the environment, employees, and stockholders).
Executives
Matthew Ohayer director, 10 percent owner, officer: Executive Chairman C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Russell Diez-canseco director, officer: President and CEO C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Jason Dale officer: COO and CFO C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Thilo Wrede officer: Chief Financial Officer C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Kathryn Mckeon officer: Chief Marketing Officer C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Stephanie Coon officer: SVP of People and Strategy C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Brent Drever director C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Denny Marie Post director C/O BURGER KING HOLDINGS, INC., 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Joanne Bal officer: GC, Sec. and Head of ESG C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Scott Marcus officer: Chief Marketing Officer C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TN 78704
Jeffery S Dawson officer: Chief Accounting Officer 2711 NORTH HASKELL AVENUE, SUITE 3400, DALLAS TX 75204
Kofi Owusu Amoo-gottfried director C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Bo Erick Meissner officer: Chief Financial Officer C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Karl Khoury director C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
Glenda J Flanagan director 550 BOWIE STREET, AUSTIN TX 78703