CreateAI Holdings Inc.
TSPH Industrials Trucking
Revenue growth for five consecutive years.
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CreateAI Holdings Inc. (TSPH) Altman Z-score
CreateAI Holdings Inc.'s Altman Z-score for fiscal 2022 is −0.70, 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 | −0.70 | (52.16) |
| FY2021 | 51.45 | — |
How fiscal 2022’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.87 | — | 1.05 | |
| Retained earnings / total assets | (1.50) | — | −2.10 | |
| EBIT / total assets | (0.46) | — | −1.50 | |
| Market value of equity / total liabilities | 3.07 | — | 1.84 | |
| Sales / total assets | 0.01 | — | 0.01 | |
| Altman Z-score | Distress zone | −0.70 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 6.14 | ||
Z and Z″ put CreateAI Holdings 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 |
|---|---|
| ETS Elite Express Holding Inc. compare | 9.5× |
| MRTN Marten Transport, Ltd. compare | 5.2× |
| WERN Werner Enterprises, Inc. compare | 2.8× |
| TOPP Toppoint Holdings Inc. compare | 2.7× |
| HTLD Heartland Express, Inc. compare | 2.6× |
| CVLG Covenant Logistics Group, Inc. compare | 2.1× |
| ULH Universal Logistics Holdings, Inc. compare | 1.4× |
| PAMT PAMT Corp. compare | 1.3× |
| TSPH CreateAI Holdings Inc. | −0.7× |
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