What is Foghorn Therapeutics Financial Strength?
Foghorn Therapeutics 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:
Foghorn Therapeutics Inc 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 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 Foghorn Therapeutics's interest coverage with the available data.
Foghorn Therapeutics's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.95.
As of today, Foghorn Therapeutics's Altman Z-Score is -2.13.
Competitive Comparison of Foghorn Therapeutics's Financial Strength
For the Biotechnology subindustry, Foghorn 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.
Foghorn Therapeutics's Financial Strength Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Foghorn Therapeutics's Financial Strength distribution charts can be found below:
* The bar in red indicates where Foghorn Therapeutics's Financial Strength falls into.
Foghorn 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:
Foghorn Therapeutics's Interest Expense for the
months ended in Dec. 2023 was $0.00 Mil. Its Operating Income for the
months ended in Dec. 2023 was $-25.46 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $36.56 Mil.
Foghorn Therapeutics's Interest Coverage for the quarter that ended in Dec. 2023 is
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. Foghorn 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.
Foghorn Therapeutics's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
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.
Foghorn Therapeutics has a Z-score of -2.13, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -2.13 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.
Foghorn Therapeutics (Foghorn Therapeutics) Business Description
Traded in Other Exchanges
N/A
Address
500 Technology Square, Suite 700, Cambridge, MA, USA, 02139
Foghorn Therapeutics Inc is engaged in the discovery and development of a new class of medicines targeting genetically determined dependencies within the chromatin regulatory system. Its proprietary Gene Traffic Control platform gives an integrated, mechanistic understanding of how the various components of the chromatin regulatory system interact, allowing it to identify, validate and potentially drug targets within the system. The company is developing FHD-286, a selective, allosteric ATPase inhibitor, and FHD-609, a protein degrader, to treat hematologic cancers and solid tumors.
Executives
| Alfonso Quintas Cardama |
officer: Chief Medical Officer |
C/O TCR2 THERAPEUTICS INC., 100 BINNEY STREET, CAMBRIDGE MA 02142 |
| Samuel Agresta |
officer: Chief Medical Officer |
784 MEMORIAL DR., CAMBRIDGE MA 02139 |
| Lynch Thomas J. Jr. |
director |
800 HOWARD AVENUE, YALE PHYSICIANS BUILDING, 2ND FLOOR, NEW HAVEN CT 06519 |
| B Lynne Parshall |
director |
2855 GAZELLE COURT, CARLSBAD CA 92010 |
| Carlos Costa |
officer: Chief People Officer |
C/O FOGHORN THERAPEUTICS INC., 500 TECHNOLOGY SQUARE, SUITE 700, CAMBRIDGE MA 02139 |
| Fanny Cavalie |
officer: Chief Strategy/Bus Ops Officer |
C/O FOGHORN THERAPEUTICS INC., 500 TECHNOLOGY SQUARE, SUITE 700, CAMBRIDGE MA 02139 |
| Ian F Smith |
director |
C/O ACORDA THERAPEUTICS, INC., 420 SAW MILL RIVER ROAD, ARDSLEY NY 10502 |
| Michael Lacascia |
officer: Chief Legal Officer |
500 TECHNOLOGY SQUARE, SUITE 700, CAMBRIDGE MA 02139 |
| Carl Decicco |
officer: Chief Scientific Officer |
100 BINNEY STREET, SUITE 610, CAMBRIDGE MA 02142 |
| Flagship Ventures Opportunities Fund I General Partner Llc |
10 percent owner |
55 CAMBRIDGE PARKWAY, SUITE 800E, CAMBRIDGE MA 02142 |
| Abu Dhabi Investment Authority |
10 percent owner |
211 CORNICHE STREET, PO BOX 3600, ABU DHABI C0 0000 |
| Michael Mendelsohn |
director |
C/O CYCLERION THERAPEUTICS, INC., 301 BINNEY STREET, CAMBRIDGE MA 02142 |
| Adam Koppel |
director |
C/O BROOKSIDE CAPITAL, LLC, JOHN HANCOCK TOWER, 200 CLARENDON ST, BOSTON MA 02116 |
| Steven F. Bellon |
officer: See Remarks |
500 TECHNOLOGY SQUARE, SUITE 700, CAMBRIDGE MA 02139 |
| Jose Baselga |
director |
780 MEMORIAL DRIVE, CAMBRIDGE MA 02139 |
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