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IDXX (IDEXX Laboratories) Altman Z-Score : 15.27 (As of Oct. 31, 2024)


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What is IDEXX Laboratories Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 16.46 is strong.

IDEXX Laboratories has a Altman Z-Score of 15.27, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for IDEXX Laboratories's Altman Z-Score or its related term are showing as below:

IDXX' s Altman Z-Score Range Over the Past 10 Years
Min: 4.33   Med: 11.6   Max: 23.78
Current: 16.46

During the past 13 years, IDEXX Laboratories's highest Altman Z-Score was 23.78. The lowest was 4.33. And the median was 11.60.


IDEXX Laboratories Altman Z-Score Historical Data

The historical data trend for IDEXX Laboratories's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

IDEXX Laboratories Altman Z-Score Chart

IDEXX Laboratories Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.59 19.18 23.48 13.57 19.92

IDEXX Laboratories Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.61 16.59 19.92 19.41 17.46

Competitive Comparison of IDEXX Laboratories's Altman Z-Score

For the Diagnostics & Research subindustry, IDEXX Laboratories's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


IDEXX Laboratories's Altman Z-Score Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, IDEXX Laboratories's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where IDEXX Laboratories's Altman Z-Score falls into.



IDEXX Laboratories Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

IDEXX Laboratories's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1206+1.4*1.4301+3.3*0.321+0.6*18.2556+1.0*1.1083
=15.27

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2024:
Total Assets was $3,415 Mil.
Total Current Assets was $1,529 Mil.
Total Current Liabilities was $1,117 Mil.
Retained Earnings was $4,883 Mil.
Pre-Tax Income was 259.056 + 295.479 + 239.668 + 267.891 = $1,062 Mil.
Interest Expense was -8.099 + -7.911 + -9.265 + -8.647 = $-34 Mil.
Revenue was 1003.578 + 964.095 + 901.601 + 915.527 = $3,785 Mil.
Market Cap (Today) was $33,492 Mil.
Total Liabilities was $1,835 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1528.612 - 1116.702)/3414.867
=0.1206

X2=Retained Earnings/Total Assets
=4883.448/3414.867
=1.4301

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1062.094 - -33.922)/3414.867
=0.321

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=33491.915/1834.614
=18.2556

X5=Revenue/Total Assets
=3784.801/3414.867
=1.1083

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

IDEXX Laboratories has a Altman Z-Score of 15.27 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


IDEXX Laboratories  (NAS:IDXX) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


IDEXX Laboratories Altman Z-Score Related Terms

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IDEXX Laboratories Business Description

Address
One IDEXX Drive, Westbrook, ME, USA, 04092
Idexx Laboratories primarily develops, manufactures, and distributes diagnostic products, equipment, and services for pets and livestock. Its key product lines include single-use canine and feline test kits that veterinarians can employ in the office, benchtop chemistry and hematology analyzers for test-panel analysis on-site, reference lab services, and tests to detect and manage disease in livestock. The firm also offers vet practice management software and consulting services to animal hospitals. Idexx gets close to 35% of its revenue from outside the United States.
Executives
M Anne Szostak director C/O TUPPERWARE BRANDS CORP, 14901 S ORANGE BLOSSOM TR, ORLANDO FL 32837
Bruce L. Claflin director 7035 RIDGE ROAD, HANOVER MD 21076
James F Polewaczyk officer: Corporate Vice President IDEXX LABORATORIES, INC., ONE IDEXX DRIVE, WESTBROOK ME 04092
Sophie V. Vandebroek director 6 OAK MEADOW ROAD, LINCOLN MA 01770
George Fennell officer: CORPORATE VICE PRESIDENT IDEXX LABORATORIES, INC., ONE IDEXX DRIVE, WESTBROOK ME 04092
Brian P Mckeon director IDEXX LABORATORIES, ONE IDEXX DRIVE, WESTBROOK ME 04092
Jonathan Jay Mazelsky director, officer: President and CEO ONE IDEXX DRIVE, WESTBROOK ME 04092
Martin Alexander Smith officer: Executive Vice President C/O IDEXX LABORATORIES, INC., ONE IDEXX DRIVE, WESTBROOK ME 04092
Jonathan W Ayers director, officer: President & CEO IDEXX LABORATORIES, INC., ONE IDEXX DRIVE, WESTBROOK ME 04092
Michael Lane officer: Executive Vice President C/O IDEXX LABORATORIES, INC., WESTBROOK ME 04092
Irene Chang Britt director CAMPBELL SOUP COMPANY, ONE CAMPBELL PLACE, CAMDEN NJ 08103
Samer Abdul Samad director 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Lawrence D Kingsley director C/O IDEX CORPORATION, 630 DUNDEE ROAD, NORTHBROOK IL 60062
Asha Collins director IDEXX LABORATORIES, INC., ONE IDEXX DRIVE, WESTBROOK ME 04092
Stuart Essig director 311 C ENTERPRISE DRIVE, PLAINSBORO NJ 08536