GURUFOCUS.COM » STOCK LIST » Technology » Software » Autodesk Inc (NAS:ADSK) » Definitions » Altman Z2-Score

Autodesk (Autodesk) Altman Z2-Score : -0.06 (As of Apr. 27, 2024)


View and export this data going back to 1985. Start your Free Trial

What is Autodesk Altman Z2-Score?

Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.

Warning Sign:

Autodesk has a Altman Z2-Score of -0.06, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.

The historical rank and industry rank for Autodesk's Altman Z2-Score or its related term are showing as below:

ADSK' s Altman Z2-Score Range Over the Past 10 Years
Min: -2.96   Med: -0.65   Max: 3.03
Current: -0.06

During the past 13 years, Autodesk's highest Altman Z2-Score was 3.03. The lowest was -2.96. And the median was -0.65.


Autodesk Altman Z2-Score Historical Data

The historical data trend for Autodesk's Altman Z2-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.

Autodesk Altman Z2-Score Chart

Autodesk Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Altman Z2-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.45 -0.52 -1.08 -0.28 -0.06

Autodesk Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Altman Z2-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 -0.28 -0.74 -0.61 -0.39 -0.06

Competitive Comparison of Autodesk's Altman Z2-Score

For the Software - Application subindustry, Autodesk's Altman Z2-Score, along with its competitors' market caps and Altman Z2-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.


Autodesk's Altman Z2-Score Distribution in the Software Industry

For the Software industry and Technology sector, Autodesk's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where Autodesk's Altman Z2-Score falls into.



Autodesk Altman Z2-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.

Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.

Autodesk's Altman Z2-Score for today is calculated with this formula:

Z=6.56*X1+3.26*X2+6.72*X3+1.05*X4_2
=6.56*-0.0779+3.26*-0.1728+6.72*0.1147+1.05*0.2302
=-0.06

* 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 Z2-Score when X4_2 value is 0.

Trailing Twelve Months (TTM) ended in Jan. 2024:
Total Assets was $9,912 Mil.
Total Current Assets was $3,579 Mil.
Total Current Liabilities was $4,351 Mil.
Retained Earnings was $-1,713 Mil.
Pre-Tax Income was 337 + 320 + 258 + 221 = $1,136 Mil.
Interest Expense was 0 + -1 + 0 + 0 = $-1 Mil.
Total Liabilities was $8,057 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
=(3579 - 4351)/9912
=-0.0779

X2=Retained Earnings/Total Assets
=-1713/9912
=-0.1728

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1136 - -1)/9912
=0.1147

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(1855 - 0)/8057
=0.2302

The zones of discrimination were as such:

Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones

Autodesk has a Altman Z2-Score of -0.06 indicating it is in Distress Zones.


Autodesk  (NAS:ADSK) Altman Z2-Score Explanation

The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.

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_2, Net Worth (Total Stockholders Equity - Preferred Stock)/Total Liabilities (NW/TL): it compares a company’s stock net worth with its total liabilities and can be used to assess the extent of its reliance on debt.

Read more about Altman Z2-Score, the original research on Z-Score and the additional research on Z2-Score.


Be Aware

Altman Z2-Score does not apply to financial companies.


Autodesk Altman Z2-Score Related Terms

Thank you for viewing the detailed overview of Autodesk's Altman Z2-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Autodesk (Autodesk) Business Description

Address
One Market Street, Suite 400, San Francisco, CA, USA, 94105
Founded in 1982, Autodesk is an application software company that serves industries in architecture, engineering, and construction; product design and manufacturing; and media and entertainment. Autodesk software enables design, modeling, and rendering needs of these industries. The company has over 4 million paid subscribers across 180 countries.
Executives
Mary T Mcdowell director
Stacy J Smith director 2200 MISSION COLLEGE BLVD., RNB-4-151, SANTA CLARA CA 95054
Rebecca Pearce officer: EVP, Chief People Officer 111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Betsy Rafael director 550 MERIDIAN AVENUE, SAN JOSE CA 95126
Stephen W. Hope officer: VP & Chief Accounting Officer 111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Lorrie M Norrington director C/O EBAY INC., 2145 HAMILTON AVENUE, SAN JOSE CA 95125
Andrew Anagnost director, officer: President and CEO 111 MCINNIS PARKWAY, AUTODESK, INC., SAN RAFAEL CA 94903
Deborah Clifford officer: EVP & Chief Financial Officer 4300 NORTH FIRST STREET, SAN JOSE CA 95134
Ayanna Howard director 111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Rami Rahim director 1194 N. MATHILDA AVE., SUNNYVALE CA 94089
Ruth Ann Keene officer: EVP, Corp Affairs, CLO C/O UNITY SOFTWARE INC., 30 - 3RD STREET, SAN FRANCISCO CA 94103
Di Fronzo Pascal W officer: EVP, Corp Affairs, CLO & Sec AUTODESK, INC., 111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Steven M Blum officer: Chief Revenue Officer 111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
French R Reid Jr director C/O INTERGRAPH CORP, 288 DUNLOP BLVD, HUNTSVILLE AL 35824
Stephen D Milligan director C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119

Autodesk (Autodesk) Headlines