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Global Blood Therapeutics Financial Strength

: 4 (As of Jun. 2022)
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Global Blood Therapeutics has the Financial Strength Rank of 4.

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.

Global Blood Therapeutics did not have earnings to cover the interest expense. Global Blood Therapeutics's debt to revenue ratio for the quarter that ended in Jun. 2022 was 2.30. As of today, Global Blood Therapeutics's Altman Z-Score is 1.15.


Competitive Comparison

For the Biotechnology subindustry, Global Blood 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.

   

Global Blood Therapeutics Financial Strength Distribution

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

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



Global Blood 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:

Global Blood Therapeutics's Interest Expense for the months ended in Jun. 2022 was $-8.4 Mil. Its Operating Income for the months ended in Jun. 2022 was $-75.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $652.3 Mil.

Global Blood Therapeutics's Interest Coverage for the quarter that ended in Jun. 2022 is

Global Blood 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.

Global Blood Therapeutics's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6.119 + 652.267) / 286.2
=2.30

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.

Global Blood Therapeutics has a Z-score of 1.15, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.15 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.


Global Blood Therapeutics  (NAS:GBT) 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.

Global Blood Therapeutics has the Financial Strength Rank of 4.


Global Blood Therapeutics Financial Strength Related Terms

Thank you for viewing the detailed overview of Global Blood Therapeutics's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Global Blood Therapeutics Business Description

Global Blood Therapeutics logo
Traded in Other Exchanges
Address
181 Oyster Point Boulevard, South San Francisco, CA, USA, 94080
Global Blood Therapeutics Inc operates in the healthcare sector of the United States. It discovers and develops novel therapeutics to address blood-based disorders. GBT440, its lead drug candidate targets the underlying mechanism of red blood cell (RBC) sickling, which provides the potential to treat sickle cell disease. GBT440. an oral, once-daily therapy arrests abnormal hemoglobin polymerization, the underlying mechanism of RBC sickling. In addition, the company is engaged in other research and development activities targeted at hereditary angioedema and owns exclusively licensed rights to its portfolio of product candidates in the United States, Europe, and other major markets.
Executives
Habibizad Nazila officer: See Remarks C/O GLOBAL BLOOD THERAPEUTICS, INC. 181 OYSTER POINT BLVD SOUTH SAN FRANCISCO CA 94080
Krehlik Carrie officer: Chief Human Resources Officer 6015 COLTON BLVD OAKLAND CA 94611
Smith-whitley Kim officer: See Remarks C/O GLOBAL BLOOD THERAPEUTICS, INC. 181 OYSTER POINT BLVD. SOUTH SAN FRANCISCO CA 94080
Thompson Alexis A. director C/O GLOBAL BLOOD THERAPEUTICS, INC. 181 OYSTER POINT BLVD. SOUTH SAN FRANCISCO CA 94080
Lehrer-graiwer Joshua officer: Chief Medical Officer C/O GLOBAL BLOOD THERAPEUTICS, INC. 171 OYSTER POINT BLVD., SUITE 300 SOUTH SAN FRANCISCO CA 94080
Fink Eric officer: Chief Human Resources Officer C/O GLOBAL BLOOD THERAPEUTICS, INC. 171 OYSTER POINT BLVD., SUITE 300 SOUTH SAN FRANCISCO CA 94080
Cathers Brian Edwin officer: Chief Scientific Officer C/O GLOBAL BLOOD THERAPEUTICS, INC. 171 OYSTER POINT BLVD., SUITE 300 SOUTH SAN FRANCISCO CA 94080
Svoronos Dawn director C/O MEDIVATION, INC. 525 MARKET ST., 36TH FLOOR SAN FRANCISCO CA 94105
Johnson David Lee officer: Chief Commercial Officer C/O GLOBAL BLOOD THERAPEUTICS 171 OYSTER POINT BLVD, STE. 300 SAN FRANCISCO CA 94080
Yarno Wendy L director
Perceptive Life Sciences Master Fund Ltd 10 percent owner C/O PERCEPTIVE ADVISORS LLC 51 ASTOR PLACE, 10TH FLOOR NEW YORK NY 10003
Perceptive Advisors Llc 10 percent owner 51 ASTOR PLACE, 10TH FLOOR NEW YORK NY 10003
Edelman Joseph 10 percent owner C/O PERCEPTIVE ADVISORS LLC 51 ASTOR PLACE, 10TH FLOOR NEW YORK NY 10003
Third Rock Ventures Iii, L.p. 10 percent owner 29 NEWBURY STREET, 3RD FLOOR BOSTON MA 02116
Trv Gp Iii, Llc 10 percent owner THIRD ROCK VENTURES 29 NEWBURY STREET, 3RD FLOOR BOSTON MA 02116

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