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SRM Entertainment (SRM Entertainment) Altman Z-Score : 19.26 (As of May. 14, 2024)


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What is SRM Entertainment 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 17.66 is strong.

SRM Entertainment has a Altman Z-Score of 19.26, 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 SRM Entertainment's Altman Z-Score or its related term are showing as below:

SRM' s Altman Z-Score Range Over the Past 10 Years
Min: 17.66   Med: 21.43   Max: 21.43
Current: 17.66

During the past 2 years, SRM Entertainment's highest Altman Z-Score was 21.43. The lowest was 17.66. And the median was 21.43.


SRM Entertainment Altman Z-Score Historical Data

The historical data trend for SRM Entertainment'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.

SRM Entertainment Altman Z-Score Chart

SRM Entertainment Annual Data
Trend Dec22 Dec23
Altman Z-Score
- 21.43

SRM Entertainment Quarterly Data
Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-Score Get a 7-Day Free Trial - - - 24.27 21.43

Competitive Comparison of SRM Entertainment's Altman Z-Score

For the Leisure subindustry, SRM Entertainment'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.


SRM Entertainment's Altman Z-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, SRM Entertainment's Altman Z-Score distribution charts can be found below:

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



SRM Entertainment 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.

SRM Entertainment'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*0.8979+1.4*-0.2989+3.3*-0.5008+0.6*32.5084+1.0*0.7526
=19.26

* 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 Dec. 2023:
Total Assets was $4.54 Mil.
Total Current Assets was $4.50 Mil.
Total Current Liabilities was $0.42 Mil.
Retained Earnings was $-1.36 Mil.
Pre-Tax Income was -0.757 + -1.487 + -0.018 + -0.046 = $-2.31 Mil.
Interest Expense was 0 + -0.011 + 0 + -0.022 = $-0.03 Mil.
Revenue was 1.204 + 1.128 + 0 + 1.087 = $3.42 Mil.
Market Cap (Today) was $13.62 Mil.
Total Liabilities was $0.42 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
=(4.498 - 0.419)/4.543
=0.8979

X2=Retained Earnings/Total Assets
=-1.358/4.543
=-0.2989

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-2.308 - -0.033)/4.543
=-0.5008

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=13.621/0.419
=32.5084

X5=Revenue/Total Assets
=3.419/4.543
=0.7526

The zones of discrimination were as such:

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

SRM Entertainment has a Altman Z-Score of 19.26 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.


SRM Entertainment  (NAS:SRM) 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.


SRM Entertainment Altman Z-Score Related Terms

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SRM Entertainment (SRM Entertainment) Business Description

Traded in Other Exchanges
N/A
Address
1061 E Indiantown Road, Suite 110, Jupiter, FL, USA, 33477
SRM Entertainment Inc is a trusted toy and souvenir designer and developer, selling into the world's largest theme parks and entertainment venues. SRM has developed, manufactured, and supplied the entertainment and amusement park industry with exclusive products that are often only available to consumers inside SRM's worldwide customer bases venues such as Walt Disney Parks and Resorts, Universal Studios, SeaWorld, Six Flags, Great Wolf Lodge, Dollywood, and Merlin Entertainment.
Executives
Hans Haywood director 1061 E. INDIANTOWN ROAD, SUITE 110, JUPITER FL 33477
Brian John director, officer: Secretary 1500 GATEWAY BLVD, SUITE 220, BOYNTON BEACH FL 33426
Gary L Herman director 720 FIFTH AVE, 10TH FLOOR, NEW YORK NY 10019
Douglas O Mckinnon officer: Chief Financial Officer 2104 RIDGE PLAZA DR, CASTLE ROCK CO 80108
Christopher Melton director C/O SG BLOCKS, INC., 400 MADISON AVENUE, SUITE 16C, NEW YORK NY 10017
Richard A Miller director, officer: Chief Executive Officer 1500 GATEWAY BLVD, SUITE 220, BOYNTON BEACH FL 33426
Jupiter Wellness, Inc. 10 percent owner 1061 E. INDIANTOWN RD., STE. 110, JUPITER FL 33477
Taft Bryan Flittner officer: President 1129 WILKINSON STREET, ORLANDO FL 32803
Deborah Lynn Mcdaniel-hand officer: VP of Production Development 1425 WAKULLA WAY, ORLANDO FL 32839