eFFECTOR Therapeutics (NAS:EFTR) Financial Strength

: 5 (As of Dec. 2022)

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eFFECTOR Therapeutics has the Financial Strength Rank of 5.

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.

eFFECTOR Therapeutics did not have earnings to cover the interest expense. As of today, eFFECTOR Therapeutics's Altman Z-Score is 0.00.

Competitive Comparison

For the Biotechnology subindustry, eFFECTOR 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.

Annual Data Quarterly Data

eFFECTOR Therapeutics Financial Strength Distribution

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

* The bar in red indicates where eFFECTOR Therapeutics's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.

eFFECTOR Therapeutics 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:

eFFECTOR Therapeutics's Interest Expense for the months ended in Dec. 2022 was $-0.70 Mil. Its Operating Income for the months ended in Dec. 2022 was $-8.72 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was $0.06 Mil.

eFFECTOR Therapeutics's Interest Coverage for the quarter that ended in Dec. 2022 is

eFFECTOR Therapeutics 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.

eFFECTOR Therapeutics's Debt to Revenue Ratio for the quarter that ended in Dec. 2022 is

Debt to Revenue Ratio	=	Total Debt (Q: Dec. 2022 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(20.221	+	0.06)	/	0
	=	N/A

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.

eFFECTOR 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.

eFFECTOR Therapeutics (NAS:EFTR) 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.

eFFECTOR Therapeutics has the Financial Strength Rank of 5.

eFFECTOR Therapeutics Financial Strength Related Terms

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eFFECTOR Therapeutics (NAS:EFTR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » eFFECTOR Therapeutics Inc (NAS:EFTR) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

LWK1:Germany

Address

142 North Cedros Avenue, Suite B, Solana Beach, CA, USA, 92075

Website

https://www.effector.com

eFFECTOR Therapeutics Inc is a clinical-stage biopharmaceutical company focused on pioneering the development of a new class of oncology drugs referred to as selective translation regulator inhibitors (STRIs). Its product candidates target the eIF4F complex and its activating kinase, mitogen-activated protein kinase 1/2 (MNK 1/2). The eIF4F complex is a central node where two of the most frequently mutated signaling pathways in cancer, the PI3K-AKT, and RAS-MEK pathways, converge to activate the translation of select mRNA into proteins that are frequent culprits in key disease-driving processes.

Executives

Mayank Gandhi	officer: Chief Business Officer	628 MIDDLEFIELD ROAD, PALO ALTO CA 94301
Douglas J Warner	officer: Chief Medical Officer	C/O EFFECTOR THERAPEUTICS, INC., 142 NORTH CEDROS AVENUE, SUITE B, SOLANA BEACH CA 92075
Carlyle Group Inc.	10 percent owner	C/O THE CARLYLE GROUP, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004
Carlyle Genesis Uk Llc	10 percent owner	C/O THE CARLYLE GROUP, 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004
Carlyle Investment Management Llc	10 percent owner	1001 PENNSYLVANIA AVE. N.W., WASHINGTON DC 20004
Carlyle Holdings I L.p.	10 percent owner	C/O THE CARLYLE GROUP L.P., 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505
Carlyle Holdings I Gp Sub L.l.c.	10 percent owner	C/O THE CARLYLE GROUP L.P., 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505
Carlyle Holdings I Gp Inc.	10 percent owner	C/O THE CARLYLE GROUP L.P., 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505
Tc Group, Llc	10 percent owner	C/O CARLYLE GROUP, 1001 PENNSYLVANIA AVENUE NW SUITE 220 S, WASHINGTON DC 20004
Cg Subsidiary Holdings L.l.c.	10 percent owner	C/O THE CARLYLE GROUP, SUITE 220 SOUTH, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004
Kristen Harrington-smith	director	C/O IMMUNOGEN, INC., 830 WINTER STREET, WALTHAM MA 02451
Jonathan D Root	director, 10 percent owner	2735 SAND HILL ROAD, MENLO PARK CA 94025
Barbara Klencke	director	C/O SIERRA ONCOLOGY, INC., 1820 GATEWAY DRIVE, SUITE 110, SAN MATEO CA 94404
Gallagher Brian M. Jr.	director, 10 percent owner	C/O AILERON THERAPEUTICS, INC., 281 ALBANY STREET, CAMBRIDGE MA 02139
Llp Abingworth	10 percent owner	38 JERMYN STREET, LONDON X0 SW1Y 6DN