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OHI (Omega Healthcare Investors) Altman Z-Score : 1.35 (As of Oct. 31, 2024)


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What is Omega Healthcare Investors 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 1.33 is in distress zone. This implies bankruptcy possibility in the next two years.

Omega Healthcare Investors has a Altman Z-Score of 1.35, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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 Omega Healthcare Investors's Altman Z-Score or its related term are showing as below:

OHI' s Altman Z-Score Range Over the Past 10 Years
Min: 0.71   Med: 0.94   Max: 1.81
Current: 1.33

During the past 13 years, Omega Healthcare Investors's highest Altman Z-Score was 1.81. The lowest was 0.71. And the median was 0.94.


Omega Healthcare Investors Altman Z-Score Historical Data

The historical data trend for Omega Healthcare Investors'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.

Omega Healthcare Investors Altman Z-Score Chart

Omega Healthcare Investors 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 1.17 0.94 0.92 0.80 0.90

Omega Healthcare Investors 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 0.81 0.92 0.90 0.93 1.08

Competitive Comparison of Omega Healthcare Investors's Altman Z-Score

For the REIT - Healthcare Facilities subindustry, Omega Healthcare Investors'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.


Omega Healthcare Investors's Altman Z-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Omega Healthcare Investors's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Omega Healthcare Investors's Altman Z-Score falls into.



Omega Healthcare Investors 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.

Omega Healthcare Investors'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*0.1833+1.4*-0.373+3.3*0.0655+0.6*2.2162+1.0*0.1105
=1.35

* 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 $8,848.5 Mil.
Total Current Assets was $1,979.3 Mil.
Total Current Liabilities was $357.6 Mil.
Retained Earnings was $-3,300.1 Mil.
Pre-Tax Income was 118.918 + 71.829 + 61.822 + 97.011 = $349.6 Mil.
Interest Expense was -53.966 + -57.82 + -59.429 + -58.778 = $-230.0 Mil.
Revenue was 252.745 + 243.299 + 239.319 + 242.032 = $977.4 Mil.
Market Cap (Today) was $10,965.9 Mil.
Total Liabilities was $4,948.0 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
=(1979.343 - 357.58)/8848.546
=0.1833

X2=Retained Earnings/Total Assets
=-3300.093/8848.546
=-0.373

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(349.58 - -229.993)/8848.546
=0.0655

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=10965.888/4947.958
=2.2162

X5=Revenue/Total Assets
=977.395/8848.546
=0.1105

The zones of discrimination were as such:

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

Omega Healthcare Investors has a Altman Z-Score of 1.35 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Omega Healthcare Investors  (NYSE:OHI) 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.


Omega Healthcare Investors Altman Z-Score Related Terms

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Omega Healthcare Investors Business Description

Traded in Other Exchanges
Address
303 International Circle, Suite 200, Hunt Valley, MD, USA, 21030
Omega Healthcare Investors Inc is a healthcare facility real estate investment trust that invests in the United States real estate markets. Omega's portfolio focuses on long-term healthcare facilities. Omega has one reportable segment consisting of investments in healthcare-related real estate properties located in the United States and the United Kingdom. Its core business is to provide financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities (SNFs), assisted living facilities (ALFs), and to a lesser extent, independent living facilities (ILFs), rehabilitation and acute care facilities (specialty facilities) and medical office buildings (MOBs).
Executives
Daniel J Booth officer: Chief Operating Officer 9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21093
Robert O Stephenson officer: Chief Financial Officer C/O OMEGA HEALTHCARE INVESTORS, 9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21093
Lisa Egbuonu-davis director C/O OMEGA HEALTHCARE INVESTORS, INC., 303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
Gail D Makode officer: Chief Legal Officer ONE SOUND SHORE DR, SUITE 304, GREENWICH CT 06830
Kapila K Anand director C/O EXTENDED STAY AMERICA, INC., 11525 N. COMMUNITY HOUSE ROAD, SUITE 100, CHARLOTTE NC 28277
Neal Ballew officer: Chief Accounting Officer 303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
Burke W Whitman director 13455 NOEL ROAD # 2000, DALLAS TX 75240
Steven J Insoft officer: Chief Corp Development Officer
C Taylor Pickett director, officer: Chief Executive Officer C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Kevin J Jacobs director 7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Michael Ritz officer: Chief Accounting Officer 9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21131
Craig R Callen director 7902 WESTPARK DR, C/O SUNRISE ASSISTED LIVING, MCLEAN VA 22102
Ben W Perks director
Bernard J Korman director OMEGA HEALTHCARE INVESTORS INC, ANN ARBOR MI 48108
Craig M Bernfield director 303 WEST MADISON STREET, SUITE 2400, CHICAGO IL 60606