Rentokil Initial PLC
RTO Industrials Specialty Business Services
Rentokil Initial PLC’s revenue for fiscal 2025 (year ended December 2025) was $6.9 billion, up 4.40% from fiscal 2024.
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Rentokil Initial PLC (RTO) Altman Z-score
Rentokil Initial PLC's Altman Z-score for fiscal 2025 is 2.27, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.27 | 0.05 |
| FY2024 | 2.23 | 0.12 |
| FY2023 | 2.11 | 0.52 |
| FY2022 | 1.59 | (2.50) |
| FY2021 | 4.09 | 1.37 |
| FY2020 | 2.71 | (1.83) |
| FY2019 | 4.55 | 0.68 |
| FY2018 | 3.87 | (0.72) |
| FY2017 | 4.59 | 1.20 |
| FY2016 | 3.39 | 0.29 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.04 | — | 0.05 | |
| Retained earnings / total assets | 0.44 | — | 0.62 | |
| EBIT / total assets | 0.04 | — | 0.13 | |
| Market value of equity / total liabilities | 1.66 | — | 1.00 | |
| Sales / total assets | 0.48 | — | 0.48 | |
| Altman Z-score | Grey zone | 2.27 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 2.61 | ||
Z and Z″ put Rentokil Initial PLC in different zones: grey 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 |
|---|---|
| CPRT Copart, Inc. compare | 20.5× |
| DLB Dolby Laboratories compare | 9.2× |
| ULS UL Solutions Inc. compare | 7.8× |
| UNF Unifirst Corporation compare | 5.7× |
| AZZ AZZ Inc. compare | 4.6× |
| RTO Rentokil Initial PLC | 2.3× |
| ARMK Aramark compare | 2.2× |
| AMTM Amentum Holdings, Inc. compare | 1.9× |
| FA First Advantage Corporation compare | 1.2× |
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