EMMA (Emmaus Life Sciences) Financial Strength: 0 (As of Mar. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Emmaus Life Sciences Financial Strength?

Emmaus Life Sciences has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Emmaus Life Sciences did not have earnings to cover the interest expense. Emmaus Life Sciences's debt to revenue ratio for the quarter that ended in Mar. 2026 was 4.06. As of today, Emmaus Life Sciences's Altman Z-Score is -24.05.


Emmaus Life Sciences  (OTCPK:EMMA) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Emmaus Life Sciences has the Financial Strength Rank of 0.


Emmaus Life Sciences Financial Strength Related Terms


EMMA vs AGTX, BZYR, ATXI: Financial Strength Comparison

For the Biotechnology subindustry, Emmaus Life Sciences'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.


Emmaus Life Sciences Financial Strength vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Emmaus Life Sciences's Financial Strength distribution charts can be found below:

* The bar in red indicates where Emmaus Life Sciences's Financial Strength falls into.



Emmaus Life Sciences 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:

Emmaus Life Sciences's Interest Expense for the months ended in Mar. 2026 was $-2.13 Mil. Its Operating Income for the months ended in Mar. 2026 was $-0.82 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was $3.60 Mil.

Emmaus Life Sciences's Interest Coverage for the quarter that ended in Mar. 2026 is

Emmaus Life Sciences did not have earnings to cover the interest expense.

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Emmaus Life Sciences Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

Emmaus Life Sciences's Debt to Revenue Ratio for the quarter that ended in Mar. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(28.592 + 3.601) / 7.928
=4.06

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.

Emmaus Life Sciences has a Z-score of -24.05, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -24.05 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.


Emmaus Life Sciences Business Description

Address 21250 Hawthorne Boulevard, Suite 800, Torrance, CA, USA, 90503
Emmaus Life Sciences Inc is a commercial-stage biopharmaceutical company engaged in the discovery, development, marketing and sales of the Company's product Endari (prescription grade L-glutamine oral powder), to reduce the acute complications of sickle cell disease (SCD) in adult and pediatric patients five years of age and older. Endari is reimbursable by the Centers for Medicare and Medicaid Services, and every state provides coverage for Endari for outpatient prescriptions to all eligible Medicaid enrollees within their state Medicaid programs. Endari is also reimbursable by many commercial payors.