COMSovereign Holding Corp.
COMS Communication Services Telecom Services
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COMSovereign Holding Corp. (COMS) Altman Z-score
COMSovereign Holding Corp.'s Altman Z-score for fiscal 2022 is −26.13, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2022 | −26.13 | (18.12) |
| FY2021 | −8.01 | (11.16) |
| FY2020 | 3.15 | 3.75 |
| FY2019 | −0.61 | 26.64 |
| FY2018 | −27.25 | 4.75 |
| FY2017 | −32.00 | (448.54) |
| FY2016 | 416.54 | — |
How fiscal 2022’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.64) | — | −0.77 | |
| Retained earnings / total assets | (11.94) | — | −16.72 | |
| EBIT / total assets | (2.78) | — | −9.16 | |
| Market value of equity / total liabilities | 0.20 | — | 0.12 | |
| Sales / total assets | 0.40 | — | 0.40 | |
| Altman Z-score | Distress zone | −26.13 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −62.17 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| IQST iQSTEL Inc. compare | 5.0× |
| IOTR iOThree Limited compare | 2.5× |
| ELWT Elauwit Connection, Inc. compare | 1.6× |
| CABO Cable One, Inc. compare | 0.5× |
| FNGR FingerMotion, Inc. compare | 0.2× |
| UCL uCloudlink Group Inc. Sponsored ADR compare | −1.5× |
| PCLA PicoCELA Inc. compare | −2.6× |
| SURG SurgePays, Inc. compare | −23.2× |
| COMS COMSovereign Holding Corp. | −26.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets