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FBIO (Fortress Biotech) Financial Strength : 3 (As of Sep. 2024)


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What is Fortress Biotech Financial Strength?

Fortress Biotech 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:

Fortress Biotech 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.

Fortress Biotech did not have earnings to cover the interest expense. Fortress Biotech's debt to revenue ratio for the quarter that ended in Sep. 2024 was 1.22. As of today, Fortress Biotech's Altman Z-Score is -10.21.


Competitive Comparison of Fortress Biotech's Financial Strength

For the Biotechnology subindustry, Fortress Biotech'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.


Fortress Biotech's Financial Strength Distribution in the Biotechnology Industry

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

* The bar in red indicates where Fortress Biotech's Financial Strength falls into.



Fortress Biotech 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:

Fortress Biotech's Interest Expense for the months ended in Sep. 2024 was $-2.24 Mil. Its Operating Income for the months ended in Sep. 2024 was $-22.10 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $67.77 Mil.

Fortress Biotech's Interest Coverage for the quarter that ended in Sep. 2024 is

Fortress Biotech 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.

Fortress Biotech's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(3.764 + 67.765) / 58.516
=1.22

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.

Fortress Biotech has a Z-score of -10.21, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -10.21 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.


Fortress Biotech  (NAS:FBIO) 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.

Fortress Biotech 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.


Fortress Biotech Financial Strength Related Terms

Thank you for viewing the detailed overview of Fortress Biotech's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Fortress Biotech Business Description

Traded in Other Exchanges
Address
1111 Kane Concourse, Suite 301, Bay Harbor Island, FL, USA, 33154
Fortress Biotech Inc is a biopharmaceutical company. The firm is involved in the business of acquiring, developing, and commercializing pharmaceutical and biotechnology products. Its product portfolio encompasses Qbrexza, Accutane, Amzeeq, Zilxi, Targadox, Ximino, and Exelderm. The business activities of the group are functioned through Dermatology Product Sales, and Pharmaceutical and Biotechnology Product Development. It derives the majority of its revenues from Dermatology segment. Its subsidiaries also operate in biotechnology, pharmaceutical, oncology, therapeutics sectors.
Executives
Rosenwald Lindsay A Md director, 10 percent owner, officer: PRESIDENT, CEO & CHAIRMAN 375 PARK AVE, NEW YORK NY 10152
Dov Klein director C/O FORTRESS BIOTECH, INC., 3 COLUMBUS CIRCLE, 15TH FLOOR, NEW YORK NY 10019
Lucy Lu director THE FEMALE HEALTH COMPANY, 4400 BISCAYNE BOULEVARD, SUITE 888, MIAMI FL 33137
David Jin officer: Chief Financial Officer C/O AVENUE THERAPEUTICS, INC., 1140 AVENUE OF THE AMERICAS, FLOOR 9, NEW YORK NY 10036
Robyn Hunter officer: Chief Financial Officer 95 SAWYER ROAD, SUITE 110, WALTHAM MA 02453
Eric K Rowinsky director IMCLONE SYSTEMS INCORPORATED, 180 VARICK STREET, 6TH FLOOR, NEW YORK NY 10014
Malcolm Hoenlein director 750 LEXINGTON AVENUE, NEW YORK NY 10022
Jimmie Harvey director 3741 EAST FAIRWAY DRIVE, BIRMINGHAM AL 35213
J Jay Lobell director 365 W END AVE, APARTMENT 10A, NEW YORK NY 10024
Michael S Weiss director, 10 percent owner, officer: EXECUTIVE VICE CHAIRMAN 750 LEXINGTON AVE, NEW YORK NY 10022
Kevin Lorenz director C/O NUVEEN, 333 W. WACKER DR., CHICAGO IL 60606
George Avgerinos officer: SVP, Biologics Operations C/O CORONADO BIOSCIENCES, INC., 24 NEW ENGLAND EXECUTIVE PARK, BURLINGTON MA 01803
Kevin Horgan other: Former Chief Medical Officer C/O SOLIGENIX, INC., 29 EMMONS DRIVE, STE. C-10, PRINCETON NJ 08540
David Jonathan Barrett director ONE PENN PLAZA, SUITE 2514, NEW YORK NY 10119
Harlan F Weisman director C/O CORONADO BIOSCIENCES, INC., 15 NEW ENGLAND EXECUTIVE PARK, BURLINGTON MA 01803