XOMA Royalty 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:
XOMA Royalty Corp 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 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.
XOMA Royalty's Interest Coverage for the quarter that ended in Dec. 2024 was 0.19.
XOMA Royalty's debt to revenue ratio for the quarter that ended in Dec. 2024 was 12.72.
As of today, XOMA Royalty's Altman Z-Score is -6.06.
Competitive Comparison of XOMA Royalty's Financial Strength
For the Biotechnology subindustry, XOMA Royalty'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.
XOMA Royalty's Financial Strength Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, XOMA Royalty's Financial Strength distribution charts can be found below:
* The bar in red indicates where XOMA Royalty'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.
XOMA Royalty has a Z-score of -6.06, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -6.06 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.
XOMA Royalty 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.
XOMA Royalty Financial Strength Related Terms
Thank you for viewing the detailed overview of XOMA Royalty's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
XOMA Royalty Corp is a biotechnology royalty aggregator playing a role in helping biotech companies achieve their goal of improving human health. XOMA acquires the potential future economics associated with pre-commercial therapeutic candidates that have been licensed to pharmaceuticals or biotechnology companies. XOMA acquires future economic rights, the seller receives non-dilutive, non-recourse funding that can use to advance their internal drug candidate(s) or for general corporate purposes. Geographically, the company operates in Switzerland, United States, Asia Pacific, Europe and Others.
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