Horizon Therapeutics (NAS:HZNP) Financial Strength

: 7 (As of Jun. 2023)

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Horizon Therapeutics has the Financial Strength Rank of 7.

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.

Horizon Therapeutics's Interest Coverage for the quarter that ended in Jun. 2023 was 11.64. Horizon Therapeutics's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.68. As of today, Horizon Therapeutics's Altman Z-Score is 5.06.

Competitive Comparison

For the Drug Manufacturers - General subindustry, Horizon 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

Horizon Therapeutics Financial Strength Distribution

For the Drug Manufacturers industry and Healthcare sector, Horizon Therapeutics's Financial Strength distribution charts can be found below:

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

Horizon 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:

Horizon Therapeutics's Interest Expense for the months ended in Jun. 2023 was $-12 Mil. Its Operating Income for the months ended in Jun. 2023 was $141 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $2,541 Mil.

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

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	140.841	/	-12.098
	=	11.64

The higher the ratio, the stronger the company's financial strength is.

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

Horizon 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
	=	(16	+	2541.458)	/	3779.836
	=	0.68

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.

Horizon Therapeutics has a Z-score of 5.06, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.06 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.

Horizon Therapeutics (NAS:HZNP) 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.

Horizon Therapeutics has the Financial Strength Rank of 7.

Horizon Therapeutics Financial Strength Related Terms

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Horizon Therapeutics (NAS:HZNP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Horizon Therapeutics PLC (NAS:HZNP) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

HZNP:Mexico HPR:Germany

Address

70 St. Stephen’s Green, Dublin, IRL, D02 E2X4

Website

https://www.horizontherapeutics.com

Horizon Therapeutics PLC is a biotechnology company. The company is focused on the discovery, development, and commercialization of medicines that address critical needs for people impacted by rare, autoimmune, and severe inflammatory diseases. Some of its pipeline products include UPLIZNA; HZN-825; Dazodalibep; Daxdilimab; TEPEZZA and others.

Executives

Patrick Mcilvenny	officer: Chief Accounting Officer	C/O HORIZON THERAPEUTICS PLC, 70 ST. STEPHEN'S GREEN, DUBLIN L2 D02 E2X4
Jacopo Leonardi	officer: Chief Commercial Officer	C/O HORIZON THERAPEUTICS PLC, 70 ST. STEPHEN'S GREEN, DUBLIN L2 D02 E2X4
Aaron Cox	officer: EVP, Chief Financial Officer	C/O HORIZON THERAPEUTICS PLC, 70 ST. STEPHEN'S GREEN, DUBLIN L2 D02 E2X4
Sean M. Clayton	officer: EVP, General Counsel	C/O HORIZON THERAPEUTICS PLC, 70 SAINT STEPHENS GREEN, DUBLIN L2 D02 E2X4
Thompson Elizabeth H.z.	officer: EVP, Research & Development	C/O HORIZON THERAPEUTICS, INC., 2 TOWER PLACE, 12TH FLOOR, SOUTH SAN FRANCISCO CA 94080
Karin Rosen	officer: EVP, R&D & CSO	C/O HORIZON THERAPEUTICS, INC., CONNAUGHT HOUSE, 1ST FL, 1 BURLINGTON RD, DUBLIN L2 D04 C5Y6
Daniel A. Camardo	officer: EVP and President, U.S.	ATHERSYS, INC., 3201 CARNEGIE AVE, CLEVELAND OH 44115
Andy Pasternak	officer: EVP and Chief Business Officer	C/O HORIZON THERAPEUTICS PLC, CONNAUGHT HOUSE, 1ST FL, 1 BURLINGTON RD, DUBLIN L2 D04 C5Y6
Susan Mahony	director	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Jeff Kent	officer: See remarks	C/O HORIZON PHARMA PLC, CONNAUGHT HOUSE, 1ST FL, 1 BURLINGTON RD, DUBLIN L2 4
Shao-lee Lin	officer: EVP, Head of R&D and CSO	C/O ACELYRIN, INC., 4149 LIBERTY CANYON RD., AGOURA HILLS CA 91301
Irina Konstantinovsky	officer: EVP, Chief Human Resources Off	C/O HORIZON PHARMA PLC, CONNAUGHT HOUSE, 1ST FL, 1 BURLINGTON RD, DUBLIN L2 4
Eric Mosbrooker	officer: SVP, Orphan Business Unit	C/O HORIZON PHARMA, PLC, ADELAIDE CHAMBERS, PETER STREET, DUBLIN 8 L2 000000
Pascale Witz	director	C/O REGULUS THERAPEUTICS INC., 10614 SCIENCE CENTER DRIVE, SAN DIEGO CA 92121
James Samuel Shannon	director	28903 NORTH AVENUE PAINE, VALENCIA CA 91355