Fate Therapeutics (NAS:FATE) Financial Strength

: 5 (As of Jun. 2023)

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Fate 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.

GuruFocus does not calculate Fate Therapeutics's interest coverage with the available data. Fate Therapeutics's debt to revenue ratio for the quarter that ended in Jun. 2023 was 28.50. As of today, Fate Therapeutics's Altman Z-Score is -2.10.

Competitive Comparison

For the Biotechnology subindustry, Fate 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

Fate Therapeutics Financial Strength Distribution

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

* The bar in red indicates where Fate 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.

Fate 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:

Fate Therapeutics's Interest Expense for the months ended in Jun. 2023 was $0.0 Mil. Its Operating Income for the months ended in Jun. 2023 was $-62.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $100.6 Mil.

Fate Therapeutics's Interest Coverage for the quarter that ended in Jun. 2023 is

GuruFocus does not calculate Fate Therapeutics'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. Fate Therapeutics Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

Fate Therapeutics's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Jun. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(5.786	+	100.562)	/	3.732
	=	28.50

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.

Fate Therapeutics has a Z-score of -2.10, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -2.1 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.

Fate Therapeutics (NAS:FATE) 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.

Fate Therapeutics has the Financial Strength Rank of 5.

Fate Therapeutics Financial Strength Related Terms

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Fate Therapeutics (NAS:FATE) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

F6T:Germany

Address

12278 Scripps Summit Drive, San Diego, CA, USA, 92131

Website

https://www.fatetherapeutics.com

Fate Therapeutics Inc is a clinical-stage biopharmaceutical company based in the United States. It is engaged in the development of programmed cellular immunotherapies for cancer and immune disorders. The company's cell therapy pipeline is comprised of NK- and T-cell immuno-oncology programs, including off-the-shelf engineered product candidates derived from clonal master iPSC lines, and immuno-regulatory programs, including product candidates to prevent life-threatening complications in patients.

Executives

Brian T. Powl	officer: Chief Commercial Officer	C/O FATE THERAPEUTICS, INC., 12278 SCRIPPS SUMMIT DRIVE, SAN DIEGO CA 92131
Dulac Edward J Iii	officer: Chief Financial Officer	FATE THERAPEUTICS, INC., 3535 GENERAL ATOMICS COURT STE 200, SAN DIEGO CA 92121
Mark Plavsic	officer: Chief Technical Officer	C/O FATE THERAPEUTICS, INC., 3535 GENERAL ATOMICS COURT STE 200, SAN DIEGO CA 92121
Yuan Xu	director	C/O AKERO THERAPEUTICS, INC., 601 GATEWAY BOULEVARD, SUITE 350, SOUTH SAN FRANCISCO CA 94080
Robert S Epstein	director
John Mendlein	director
Shefali Agarwal	director	C/O EPIZYME, INC., 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Robert Hershberg	director	3005 FIRST AVENUE, SEATTLE WA 98121
Timothy P Coughlin	director	339 NORTH GRANADOS AVE, SOLANA BEACH CA 92075
Karin Jooss	director	C/O GRITSTONE ONCOLOGY, INC., 5858 HORTON STREET, SUITE 210, EMERYVILLE CA 94608
Cindy Tahl	officer: See Remarks	C/O FATE THERAPEUTICS, INC., 3535 GENERAL ATOMICS COURT, STE 200, SAN DIEGO CA 92121
Yu-waye Chu	officer: See Remarks	FATE THERAPEUTICS, INC., 3535 GENERAL ATOMICS COURT STE 200, SAN DIEGO CA 92121
Bahram Valamehr	officer: Chief Development Officer	C/O FATE THERAPEUTICS, INC., 3535 GENERAL ATOMICS COURT, STE 200, SAN DIEGO CA 92121
Michael Stewart Lee	director	C/O REDMILE GROUP, LLC, ONE LETTERMAN DR., BLDG. D, SUITE D3-300, SAN FRANCISCO CA 94129
Jeremy Green	director, 10 percent owner	45 W. 27TH STREET, FLOOR 11, NEW YORK NY 10001