Delta Apparel, Inc.
DLAPQ Consumer Cyclical Apparel Manufacturing
Delta Apparel, Inc.’s revenue for fiscal 2023 (year ended September 2023) was $415.4 million, down 14.3% from fiscal 2022. Dividend growth for five consecutive years, revenue growth for three, operating cash flow growth for three.
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Delta Apparel, Inc. (DLAPQ) Altman Z-score
Delta Apparel, Inc.'s Altman Z-score for fiscal 2023 is 1.59, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2023 | 1.59 | (0.58) |
| FY2022 | 2.17 | (0.36) |
| FY2021 | 2.53 | 0.67 |
| FY2020 | 1.86 | (0.86) |
| FY2019 | 2.72 | (0.04) |
| FY2018 | 2.76 | (0.37) |
| FY2017 | 3.13 | 0.34 |
| FY2016 | 2.78 | (0.17) |
| FY2015 | 2.96 | — |
How fiscal 2023’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.32 | — | 0.39 | |
| Retained earnings / total assets | 0.29 | — | 0.41 | |
| EBIT / total assets | (0.06) | — | −0.21 | |
| Market value of equity / total liabilities | 0.15 | — | 0.09 | |
| Sales / total assets | 0.91 | — | 0.91 | |
| Altman Z-score | Distress zone | 1.59 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.17 | ||
Z and Z″ put Delta Apparel, Inc. in different zones: distress zone by Z, safe zone by Z″.
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 |
|---|---|
| JL J-Long Group Limited compare | 4.4× |
| JRSH Jerash Holdings (US), Inc. compare | 4.1× |
| LAKE Lakeland Industries, Inc. compare | 2.1× |
| DLAPQ Delta Apparel, Inc. | 1.6× |
| NCI Neo-Concept International Group Holdings Limited compare | 1.3× |
| PLCE The Children's Place, Inc. compare | 1.0× |
| JXG Aquaron Acquisition Corp. compare | −1.3× |
| XELB Xcel Brands, Inc compare | −4.4× |
| PMNT Perfect Moment Ltd. compare | −7.0× |
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