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.
Synageva BioPharma has a Altman Z-Score of 151.89, 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 Synageva BioPharma's Altman Z-Score or its related term are showing as below:
Synageva BioPharma Altman Z-Score Historical Data
The historical data trend for Synageva BioPharma'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.
Competitive Comparison of Synageva BioPharma's Altman Z-Score
For the Biotechnology subindustry, Synageva BioPharma'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.
Synageva BioPharma's Altman Z-Score Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Synageva BioPharma's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Synageva BioPharma's Altman Z-Score falls into.
Synageva BioPharma 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.
Synageva BioPharma'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
*
0.9036
+
1.4
*
-0.659
+
3.3
*
-0.2473
+
0.6
*
254.223
+
1.0
*
0.0065
=
151.89
* 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.
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.
Altman Z-Score does not apply to financial companies.
Synageva BioPharma Altman Z-Score Related Terms
Thank you for viewing the detailed overview of Synageva BioPharma's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Synageva BioPharma (FRA:TMS1) Business Description
Synageva BioPharma Corp is incorporated in Delaware in 1993. On November 2, 2011, Trimeris, Inc., a Delaware corporation closed a merger transaction, Reverse Merger with Synageva BioPharma Corp., Pursuant to the Merger Agreement, Private Synageva became a wholly owned subsidiary of Trimeris. As a Reverse Merger, Trimeris changed its name to Synageva BioPharma Corp. The Company is a biopharmaceutical company focused on the discovery, development, and commercialization of therapeutic products for patients with rare diseases. The Company has several proteins therapeutic in its pipeline, including enzyme replacement therapies for lysosomal storage diseases (LSDs) and protein therapeutic programs for other rare diseases that are at the stage of preclinical development. Its program, sebelipase alfa is a recombinant human lysosomal acid lipase deficiency (LAL Deficiency), currently evaluating in global Phase 3 clinical trials in infants, children and adults with LAL Deficiency. LAL Deficiency is rare autosomal recessive LSD characterized by decreased LAL enzyme activity leading to intracellular accumulation of lipids. This disease leads to medical complications with significant morbidity and early mortality. Sebelipase alfa has been granted orphan designation by the FDA, the EMA, and the Japanese Ministry of Health, Labour and Welfare. Additionally, sebelipase alfa has received Fast Track Designation by the FDA, and Breakthrough Therapy designation by the FDA for LAL Deficiency presenting in infants. The Company has not yet received approval to market this product and is not currently commercializing any other products. Sebelipase alfa is a recombinant form of the human LAL enzyme under development as an enzyme replacement therapy for LAL Deficiency. The Company is currently enrolling and dosing Phase 3 Trial of Sebelipase Alfa in Children and Adults with LAL Deficiency. It is also pursuing a development strategy for sebelipase alfa to assess safety and tolerability in a broad population of patients, including infants, children, and adults, and to demonstrate efficacy, safety and tolerability of sebelipase alfa in the treatment of LAL Deficiency. Its potential competitors include large pharmaceutical and biotechnology companies and specialty pharmaceutical companies, academic institutions, government agencies, and research institutions. The preclinical studies and clinical testing, manufacture, labeling, storage, record keeping, advertising, promotion, export, and marketing, among other things, of its product candidates and future products, are subject to extensive regulation by governmental authorities in the U.S. and other countries.
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