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Biomarin Pharmaceutical (FRA:BM8) Financial Strength : 10 (As of Mar. 2025)


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What is Biomarin Pharmaceutical Financial Strength?

Biomarin Pharmaceutical has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Biomarin Pharmaceutical Inc shows strong financial strength.

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.

Biomarin Pharmaceutical's Interest Coverage for the quarter that ended in Mar. 2025 was 78.21. Biomarin Pharmaceutical's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.20. As of today, Biomarin Pharmaceutical's Altman Z-Score is 6.48.


Competitive Comparison of Biomarin Pharmaceutical's Financial Strength

For the Biotechnology subindustry, Biomarin Pharmaceutical'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.


Biomarin Pharmaceutical's Financial Strength Distribution in the Biotechnology Industry

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

* The bar in red indicates where Biomarin Pharmaceutical's Financial Strength falls into.


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Biomarin Pharmaceutical 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:

Biomarin Pharmaceutical's Interest Expense for the months ended in Mar. 2025 was €-3 Mil. Its Operating Income for the months ended in Mar. 2025 was €207 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was €551 Mil.

Biomarin Pharmaceutical's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*207.101/-2.648
=78.21

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Biomarin Pharmaceutical Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

Biomarin Pharmaceutical's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 550.976) / 2757.036
=0.20

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.

Biomarin Pharmaceutical has a Z-score of 6.48, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.48 is strong.

* 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.


Biomarin Pharmaceutical  (FRA:BM8) 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.

Biomarin Pharmaceutical has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Biomarin Pharmaceutical Financial Strength Related Terms

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Biomarin Pharmaceutical Business Description

Address
770 Lindaro Street, San Rafael, CA, USA, 94901
BioMarin is a global biotechnology company focused on developing and commercializing therapies for rare genetic diseases. BioMarin specializes in enzyme replacement therapies, gene therapies, and other advanced treatments aimed at addressing complex genetic disorders. The company has eight approved therapies for conditions including achondroplasia, phenylketonuria (PKU), hemophilia, and mucopolysaccharidosis. BioMarin has an expanding, yet relatively early-stage, pipeline of treatments in development.

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