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CDMO (Avid Bioservices) Financial Strength : 3 (As of Oct. 2024)


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What is Avid Bioservices Financial Strength?

Avid Bioservices has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Avid Bioservices Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Avid Bioservices did not have earnings to cover the interest expense. Avid Bioservices's debt to revenue ratio for the quarter that ended in Oct. 2024 was 1.53. As of today, Avid Bioservices's Altman Z-Score is -0.60.


Competitive Comparison of Avid Bioservices's Financial Strength

For the Biotechnology subindustry, Avid Bioservices's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Avid Bioservices's Financial Strength Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Avid Bioservices's Financial Strength distribution charts can be found below:

* The bar in red indicates where Avid Bioservices's Financial Strength falls into.



Avid Bioservices Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Avid Bioservices's Interest Expense for the months ended in Oct. 2024 was $-3.3 Mil. Its Operating Income for the months ended in Oct. 2024 was $-12.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Oct. 2024 was $204.1 Mil.

Avid Bioservices's Interest Coverage for the quarter that ended in Oct. 2024 is

Avid Bioservices did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Avid Bioservices's Debt to Revenue Ratio for the quarter that ended in Oct. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Oct. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.445 + 204.081) / 133.928
=1.53

3. Altman Z-Score.

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.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Avid Bioservices has a Z-score of -0.60, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.6 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Avid Bioservices  (NAS:CDMO) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Avid Bioservices has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Avid Bioservices Financial Strength Related Terms

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Avid Bioservices Business Description

Traded in Other Exchanges
Address
14191 Myford Road, Tustin, CA, USA, 92780
Avid Bioservices Inc is a clinical-stage biopharmaceutical company focused on the development and Current Good Manufacturing Practices (CGMP) of biopharmaceutical products derived from mammalian cell culture. Its business is organized into one reportable operating segment which is contract manufacturing and development services segment. Its services include clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing and regulatory submissions support. The company also provides a variety of process development services including cell line development, upstream and downstream development and optimization, analytical method development, testing and characterization.
Executives
Matthew R. Kwietniak officer: Chief Commercial Officer 14191 MYFORD ROAD, TUSTIN CA 92780
Richard A. Richieri officer: Chief Operations Officer 14191 MYFORD ROAD, TUSTIN CA 92780
Nicholas Stewart Green director, officer: President & CEO 2642 MICHELLE DRIVE, SUITE 200, TUSTIN CA 92780
Daniel Ryan Hart officer: Chief Financial Officer 2642 MICHELLE DR., SUITE 200, TUSTIN CA 62780
Mark R Ziebell officer: V.P., General Counsel 14282 FRANKLIN AVENUE, TUSTIN CA 92780
Richard B Hancock director 14282 FRANKLIN AVE., TUSTIN CA 92780
Joseph Carleone director 3883 HOWARD HUGHES PKWY, SUITE 700, LAS VEGAS NV 89169
Gregory Sargen director
Esther M. Alegria director 2642 MICHELLE DRIVE, SUITE 200, TUSTIN CA 92780
Mark R Bamforth director 500 KENDALL ST., CAMBRIDGE MA 02142
Jeanne Thoma director C/O ANI PHARMACEUTICALS, INC., 210 MAIN STREET WEST, BAUDETTE MN 56623
Patrick D Walsh director 14282 FRANKLIN AVE., TUSTIN CA 92780
Catherine J Mackey director 3595 JOHN HOPKINS COURT, SAN DIEGO CA 92121
Joel Mccomb director 9885 TOWNE CENTRE DRIVE, SAN DIEGO CA 92121
Stephen Michael Hedberg officer: Principal Fin. & Acct. Officer 2642 MICHELLE DRIVE, SUITE 200, TUSTIN CA 92780