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.
(1) Note: An indication of "no long-term debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Competitive Comparison of Avenue Therapeutics's Financial Strength
For the Biotechnology subindustry, Avenue Therapeutics'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.
Avenue Therapeutics's Financial Strength Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Avenue Therapeutics's Financial Strength distribution charts can be found below:
* The bar in red indicates where Avenue Therapeutics's Financial Strength falls into.
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:
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.
Avenue Therapeutics has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy 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.
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.
Avenue Therapeutics has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.
Avenue Therapeutics Financial Strength Related Terms
Thank you for viewing the detailed overview of Avenue Therapeutics's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Avenue Therapeutics Inc is a specialty pharmaceutical company focused on the development and commercialization of therapies for the treatment of neurologic diseases. Its current product candidates include AJ201 for the treatment of spinal and bulbar muscular atrophy (SBMA, also known as Kennedy's Disease), intravenous tramadol (IV tramadol) for the treatment of post-operative acute pain, and BAER-101 for the treatment of epilepsy and panic disorders.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FRA:49Y has been successfully added to your