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InterMune (FRA:IUX) Financial Strength : 0 (As of Jun. 2014)


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What is InterMune Financial Strength?

InterMune has the Financial Strength Rank of 0.

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.

InterMune did not have earnings to cover the interest expense. InterMune's debt to revenue ratio for the quarter that ended in Jun. 2014 was 1.64. As of today, InterMune's Altman Z-Score is 12.56.


Competitive Comparison of InterMune's Financial Strength

For the Biotechnology subindustry, InterMune'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.


InterMune's Financial Strength Distribution in the Biotechnology Industry

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

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



InterMune 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:

InterMune's Interest Expense for the months ended in Jun. 2014 was €-2.87 Mil. Its Operating Income for the months ended in Jun. 2014 was €-45.93 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2014 was €159.06 Mil.

InterMune's Interest Coverage for the quarter that ended in Jun. 2014 is

InterMune 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.

InterMune's Debt to Revenue Ratio for the quarter that ended in Jun. 2014 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2014 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(13.513 + 159.063) / 105.216
=1.64

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.

InterMune has a Z-score of 12.56, indicating it is in Safe Zones. This implies the Z-Score 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.


InterMune  (FRA:IUX) 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.

InterMune has the Financial Strength Rank of 0.


InterMune Financial Strength Related Terms

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


InterMune (FRA:IUX) Business Description

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InterMune, Inc was incorporated in California in 1998 and reincorporated in Delaware in 2000 in connection with its initial public offering. InterMune is a biotechnology company focused on the research, development and commercialization of therapies in pulmonology and orphan fibrotic diseases. The Company's business is mainly focused on the development and commercialization of therapies within the specialized areas of pulmonology and orphan fibrotic diseases. It has an advanced-stage product candidate in pulmonology, pirfenidone that was granted marketing authorization effective February 2011 in all 27 member countries of the European Union for the treatment of adults with mild to moderate idiopathic pulmonary fibrosis. Pirfenidone is an orally active, small molecule compound under development for the treatment of idiopathic pulmonary fibrosis. Pirfenidone, a treatment for IPF, a progressive and fatal lung disease, has completed the global Phase 3 CAPACITY clinical development program. Actimmune is currently approved in the United States for the treatment of chronic granulomatous disease and severe, malignant osteopetrosis. Actimmune is also approved for commercial use in both indications in numerous other countries. CGD is a life-threatening congenital disorder that causes patients, mainly children, to be vulnerable to severe, recurrent bacterial and fungal infections. This results in frequent and prolonged hospitalizations and commonly results in death. Severe, malignant osteopetrosis is a life-threatening, congenital disorder that mainly affects children. This disease results in increased susceptibility to infection and an overgrowth of bony structures that might lead to blindness and/or deafness. The FDA and comparable regulatory agencies in state and local jurisdictions and in foreign countries impose substantial requirements upon the clinical development, manufacture and marketing of pharmaceutical products.

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