DZS Inc.
DZSIQ Technology Communication Equipment
DZS Inc.’s revenue for fiscal 2023 (year ended December 2023) was $244.5 million, down 31.6% from fiscal 2022. Operating cash flow growth for three consecutive years.
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DZS Inc. (DZSIQ) Altman Z-score
DZS Inc.'s Altman Z-score for fiscal 2023 is −1.90, 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 | −1.90 | (3.24) |
| FY2022 | 1.35 | (1.82) |
| FY2021 | 3.16 | 0.41 |
| FY2020 | 2.76 | 0.47 |
| FY2019 | 2.29 | (0.91) |
| FY2018 | 3.20 | 0.26 |
| FY2017 | 2.94 | 1.49 |
| FY2016 | 1.45 | (1.17) |
| FY2015 | 2.62 | — |
How fiscal 2023’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.12 | — | 0.15 | |
| Retained earnings / total assets | (1.06) | — | −1.48 | |
| EBIT / total assets | (0.52) | — | −1.71 | |
| Market value of equity / total liabilities | 0.27 | — | 0.16 | |
| Sales / total assets | 0.98 | — | 0.98 | |
| Altman Z-score | Distress zone | −1.90 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −6.02 | ||
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 |
|---|---|
| FKWL Franklin Wireless Corp. compare | 3.0× |
| CLRO ClearOne, Inc. compare | 2.5× |
| MITQ Moving iMage Technologies, Inc. compare | 2.1× |
| CMBMF Cambium Networks Corporation compare | −1.8× |
| DZSIQ DZS Inc. | −1.9× |
| SYNX Silynxcom Ltd. compare | −2.6× |
| ASNS Actelis Networks, Inc. compare | −9.1× |
| VISL Vislink Technologies, Inc. compare | −26.1× |
| UTSI UTStarcom Holdings Corp compare | −30.6× |
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