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WFRD (Weatherford International) Altman Z-Score : 2.50 (As of Oct. 31, 2024)


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What is Weatherford International 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 2.5 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.

Weatherford International has a Altman Z-Score of 2.50, indicating it is in Grey Zones. This implies that Weatherford International 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 Weatherford International's Altman Z-Score or its related term are showing as below:

WFRD' s Altman Z-Score Range Over the Past 10 Years
Min: -2.97   Med: 0.7   Max: 3.13
Current: 2.5

During the past 13 years, Weatherford International's highest Altman Z-Score was 3.13. The lowest was -2.97. And the median was 0.70.


Weatherford International Altman Z-Score Historical Data

The historical data trend for Weatherford International'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.

Weatherford International Altman Z-Score Chart

Weatherford International 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 3.13 -0.32 0.67 1.36 2.29

Weatherford International 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 2.15 2.29 2.65 2.94 2.57

Competitive Comparison of Weatherford International's Altman Z-Score

For the Oil & Gas Equipment & Services subindustry, Weatherford International'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.


Weatherford International's Altman Z-Score Distribution in the Oil & Gas Industry

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

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



Weatherford International 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.

Weatherford International'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*0.334+1.4*-0.3044+3.3*0.1702+0.6*1.4978+1.0*1.0667
=2.50

* 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 $5,188 Mil.
Total Current Assets was $3,400 Mil.
Total Current Liabilities was $1,667 Mil.
Retained Earnings was $-1,579 Mil.
Pre-Tax Income was 178 + 210 + 182 + 149 = $719 Mil.
Interest Expense was -37 + -41 + -43 + -43 = $-164 Mil.
Revenue was 1409 + 1405 + 1358 + 1362 = $5,534 Mil.
Market Cap (Today) was $5,740 Mil.
Total Liabilities was $3,832 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
=(3400 - 1667)/5188
=0.334

X2=Retained Earnings/Total Assets
=-1579/5188
=-0.3044

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(719 - -164)/5188
=0.1702

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=5739.511/3832
=1.4978

X5=Revenue/Total Assets
=5534/5188
=1.0667

The zones of discrimination were as such:

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

Weatherford International has a Altman Z-Score of 2.50 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.


Weatherford International  (NAS:WFRD) 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.


Weatherford International Altman Z-Score Related Terms

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Weatherford International Business Description

Traded in Other Exchanges
Address
2000 Street James Place, Houston, TX, USA, 77056
Weatherford International provides diversified oilfield services across international markets for an array of oilfield types. The firm is a global market leader in artificial lift and tubular running services. Other key product lines include cementing products, directional drilling, and wireline evaluation.
Executives
Charles M Sledge director 1611 SCENIC MOUNTAIN COURT, KINGWOOD TX 77345
Girish Saligram director, officer: President and CEO 2000 ST. JAMES PLACE, HOUSTON TX 77056
Jacqueline C Mutschler director 2000 ST. JAMES PLACE, HOUSTON TX 77056
Benjamin Duster director 200 E. 84ST, 8TH FLOOR, NEW YORK NY 10028
Neal P Goldman director 10700 PARKRIDGE BLVD., RESTON VA 20191
Desmond J Mills officer: VP & Chief Accounting Officer 2000 ST. JAMES PLACE, HOUSTON TX 77056
Scott C Weatherholt officer: EVP, GC & CCO 321 SOUTH BOSTON AVE., SUITE 1000, TULSA OK 74103
Joseph H Mongrain officer: EVP and CHRO 2000 ST. JAMES PLACE, HOUSTON TX 77056
Arunava Mitra officer: EVP and CFO 2000 ST. JAMES PLACE, HOUSTON TX 77056
Charles Davison officer: EVP - Operational Excellence 2000 ST. JAMES PLACE, HOUSTON TX 77056
H. Keith Jennings officer: EVP and CFO 2000 ST. JAMES PLACE, HOUSTON TX 77056
Mark D Swift officer: President - Western Hemisphere 2000 ST. JAMES PLACE, HOUSTON TX 77056
Christian A Garcia officer: Chief Financial Officer 3000 N. SAM HOUSTON PARKWAY E., BLDG. J-4, HOUSTON TX 77032
John F Glick director TETRA TECHNOLOGIES, INC., 24955 INTERSTATE 45 N, THE WOODLANDS TX 77380
Bates Thomas R Jr director TETRA TECHNOLOGIES, INC., 24955 INTERSTATE 45 N, THE WOODLANDS TX 77380