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VRT (Vertiv Holdings Co) Altman Z-Score : 4.77 (As of Oct. 31, 2024)


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What is Vertiv Holdings Co 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 4.87 is strong.

Vertiv Holdings Co has a Altman Z-Score of 4.77, 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 Vertiv Holdings Co's Altman Z-Score or its related term are showing as below:

VRT' s Altman Z-Score Range Over the Past 10 Years
Min: -1.97   Med: 1.76   Max: 26.92
Current: 4.87

During the past 8 years, Vertiv Holdings Co's highest Altman Z-Score was 26.92. The lowest was -1.97. And the median was 1.76.


Vertiv Holdings Co Altman Z-Score Historical Data

The historical data trend for Vertiv Holdings Co'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.

Vertiv Holdings Co Altman Z-Score Chart

Vertiv Holdings Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial 0.23 1.45 1.76 1.48 3.12

Vertiv Holdings Co 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 2.74 3.12 4.15 4.23 4.45

Competitive Comparison of Vertiv Holdings Co's Altman Z-Score

For the Electrical Equipment & Parts subindustry, Vertiv Holdings Co'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.


Vertiv Holdings Co's Altman Z-Score Distribution in the Industrial Products Industry

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

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



Vertiv Holdings Co 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.

Vertiv Holdings Co'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*0.1479+1.4*-0.0417+3.3*0.0979+0.6*5.7957+1.0*0.847
=4.77

* 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 $8,891 Mil.
Total Current Assets was $4,805 Mil.
Total Current Liabilities was $3,489 Mil.
Retained Earnings was $-371 Mil.
Pre-Tax Income was 268.5 + 264.7 + -13 + 187.3 = $708 Mil.
Interest Expense was -35.9 + -44.8 + -39 + -42.9 = $-163 Mil.
Revenue was 2073.5 + 1952.8 + 1639.1 + 1865.4 = $7,531 Mil.
Market Cap (Today) was $41,020 Mil.
Total Liabilities was $7,078 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
=(4804.6 - 3489.2)/8891.4
=0.1479

X2=Retained Earnings/Total Assets
=-371.2/8891.4
=-0.0417

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(707.5 - -162.6)/8891.4
=0.0979

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=41020.472/7077.7
=5.7957

X5=Revenue/Total Assets
=7530.8/8891.4
=0.847

The zones of discrimination were as such:

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

Vertiv Holdings Co has a Altman Z-Score of 4.77 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.


Vertiv Holdings Co  (NYSE:VRT) 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.


Vertiv Holdings Co Altman Z-Score Related Terms

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Vertiv Holdings Co Business Description

Traded in Other Exchanges
Address
505 North, Cleveland Avenue, Westerville, OH, USA, 43082
Vertiv Holdings Co brings together hardware, software, analytics and ongoing services to ensure its customers vital applications run continuously, perform optimally and grow with their business needs. The company solves the important challenges faced by data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Its services include critical power, thermal management, racks and enclosures, monitoring and management, and other services. Its three business segments include the Americas, Asia Pacific; and Europe, Middle East & Africa.
Executives
Karsten Winther officer: President, EMEA 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Doherty Philip O' officer: Managing Director, E+I 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Roger Fradin director C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS ROAD, MELVILLE NY 11747
Yibin Edward Cui officer: President, North Asia 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Anders Karlborg officer: EVP, Man., Logistics and Op Ex 505 N. CLEVELAND AVE., WESTERVILLE OH 43082
Scott Cripps officer: Chief Accounting Officer C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Stephen Liang officer: President of Asia Pacific C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Vpe Holdings, Llc director, 10 percent owner 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Partners Iii, Llc director C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Paul Ryan officer: Chief Procurement Officer 505 N. CLEVELAND AVE., WESTERVILLE OH 43082
Platinum Equity Partners Iv, L.p. director, 10 percent owner C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Partners Iv, Llc director, 10 percent owner C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Lim Cheryl H.j. officer: Chief Human Resources Officer 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Joseph J Deangelo director 3100 CUMBERLAND BOULEVARD, SUITE 1700, ATLANTA GA 30339
Jakki L. Haussler director 221 EAST FOURTH STREET, CINCINNATI OH 45202