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HRMY (Harmony Biosciences Holdings) Altman Z-Score : 5.31 (As of Oct. 31, 2024)


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What is Harmony Biosciences Holdings 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 6.1 is strong.

Harmony Biosciences Holdings has a Altman Z-Score of 5.31, 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 Harmony Biosciences Holdings's Altman Z-Score or its related term are showing as below:

HRMY' s Altman Z-Score Range Over the Past 10 Years
Min: 2.81   Med: 5.6   Max: 8.53
Current: 6.1

During the past 6 years, Harmony Biosciences Holdings's highest Altman Z-Score was 8.53. The lowest was 2.81. And the median was 5.60.


Harmony Biosciences Holdings Altman Z-Score Historical Data

The historical data trend for Harmony Biosciences Holdings'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.

Harmony Biosciences Holdings Altman Z-Score Chart

Harmony Biosciences Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial - 2.81 6.44 8.53 4.89

Harmony Biosciences Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 5.68 4.89 5.29 4.98 -

Competitive Comparison of Harmony Biosciences Holdings's Altman Z-Score

For the Biotechnology subindustry, Harmony Biosciences Holdings'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.


Harmony Biosciences Holdings's Altman Z-Score Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Harmony Biosciences Holdings's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Harmony Biosciences Holdings's Altman Z-Score falls into.



Harmony Biosciences Holdings 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.

Harmony Biosciences Holdings'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*0.3891+1.4*-0.0509+3.3*0.2084+0.6*5.8179+1.0*0.7347
=5.31

* 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 Sep. 2024:
Total Assets was $928.1 Mil.
Total Current Assets was $522.4 Mil.
Total Current Liabilities was $161.3 Mil.
Retained Earnings was $-47.3 Mil.
Pre-Tax Income was 62.17 + 21.694 + 51.785 + 39.689 = $175.3 Mil.
Interest Expense was -4.348 + -4.404 + -4.535 + -4.796 = $-18.1 Mil.
Revenue was 186.038 + 172.814 + 154.615 + 168.412 = $681.9 Mil.
Market Cap (Today) was $1,927.7 Mil.
Total Liabilities was $331.3 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
=(522.405 - 161.279)/928.135
=0.3891

X2=Retained Earnings/Total Assets
=-47.259/928.135
=-0.0509

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(175.338 - -18.083)/928.135
=0.2084

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1927.658/331.331
=5.8179

X5=Revenue/Total Assets
=681.879/928.135
=0.7347

The zones of discrimination were as such:

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

Harmony Biosciences Holdings has a Altman Z-Score of 5.31 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.


Harmony Biosciences Holdings  (NAS:HRMY) 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.


Harmony Biosciences Holdings Altman Z-Score Related Terms

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Harmony Biosciences Holdings Business Description

Traded in Other Exchanges
N/A
Address
630 West Germantown Pike, Suite 215, Plymouth Meeting, PA, USA, 19462
Harmony Biosciences Holdings Inc is a commercial-stage pharmaceutical company focused on developing and commercializing therapies for patients living with rare neurological diseases who have unmet medical needs. The company's product WAKIX (pitolisant), is a molecule with a novel mechanism of action specifically designed to increase histamine signaling in the brain by binding to H3 receptors and used for the treatment of cataplexy in adult patients with narcolepsy.
Executives
Jeffrey Dierks officer: Chief Commercial Officer 630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462
Peter Anastasiou director C/O HARMONY BIOSCIENCES HOLDINGS, INC., 630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462
Jack Nielsen director C/O AKEBIA THERAPEUTICS, INC., 245 FIRST STREET, SUITE 1100, CAMBRIDGE MA 02142
Andreas Wicki director C/O HBM BIOVENTURES (CAYMAN) LTD., CENTENNIAL TOWERS,STE.305,2454 W.BAY RD., GRAND CAYMAN E9 E9
Andrew Serafin officer: Chief Business Officer 630 W. GERMANTOWN PIKE, PLYMOUTH MEETING PA 19462
Jeffrey M. Dayno officer: Chief Medical Officer 460 EAST SWEDESFORD ROAD, SUITE 1050, WAYNE PA 19087
John C Jacobs director, officer: President, CEO 630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462
Linda M Szyper director C/O NEOS THERAPEUTICS, INC., 2940 N. HIGHWAY 250, SUITE 400, GRAND PRAIRIE TX 75050
Sandip Kapadia officer: Chief Financial Officer 450 WEST 15 STREET, SUITE 505, NEW YORK NY 10011
R. Mark Graf director C/O DISCOVER FINANCIAL SERVICES, 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Eric L Motley director 1516 33RD STREET NW, WASHINGTON DC 20007
Valor Equity Partners Iv-a L.p. 10 percent owner 875 NORTH MICHIGAN AVENUE, SUITE 3214, CHICAGO IL 60611
Valor Equity Partners Iv-b L.p. 10 percent owner 875 NORTH MICHIGAN AVENUE, SUITE 3214, CHICAGO IL 60611
Marshman Fund Trust Ii 10 percent owner 630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462
Valor Equity Capital Iv Llc 10 percent owner 875 N. MICHIGAN AVENUE, SUITE 3214, CHICAGO IL 60611