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.
GuruFocus does not calculate Vanda Pharmaceuticals's interest coverage with the available data.
Vanda Pharmaceuticals's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.06.
As of today, Vanda Pharmaceuticals's Altman Z-Score is 1.66.
Competitive Comparison of Vanda Pharmaceuticals's Financial Strength
For the Biotechnology subindustry, Vanda Pharmaceuticals'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.
Vanda Pharmaceuticals's Financial Strength Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vanda Pharmaceuticals's Financial Strength distribution charts can be found below:
* The bar in red indicates where Vanda Pharmaceuticals'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:
GuruFocus does not calculate Vanda Pharmaceuticals's interest coverage with the available data.
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. Vanda Pharmaceuticals Inc has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Vanda Pharmaceuticals's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is
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.
Vanda Pharmaceuticals has a Z-score of 1.66, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.66 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.
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.
Vanda Pharmaceuticals has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Vanda Pharmaceuticals Financial Strength Related Terms
Thank you for viewing the detailed overview of Vanda Pharmaceuticals's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Vanda Pharmaceuticals Inc is a biopharmaceutical company engaged in the development and commercialization of therapies to address high unmet medical needs and improve the lives of patients. Its commercial portfolio comprises three products; HETLIOZ for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) & nighttime sleep disturbances in Smith-Magenis Syndrome (SMS); Fanapt for the treatment of schizophrenia; and PONVORY. Its other products include VHX-896, ASO Molecules, VQW-765, Tradipitant, VTR-297 and VHX-896. The majority of revenue is derived from the Fanapt product sales. Geographically, the company sells its product predominantly in the United States, and also in Israel, Europe, and Canada.
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