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Orchard Therapeutics (Orchard Therapeutics) Financial Strength : 3 (As of Sep. 2023)


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What is Orchard Therapeutics Financial Strength?

Orchard 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:

Orchard Therapeutics PLC 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.

Orchard Therapeutics did not have earnings to cover the interest expense. Orchard Therapeutics's debt to revenue ratio for the quarter that ended in Sep. 2023 was 1.90. As of today, Orchard Therapeutics's Altman Z-Score is -5.22.


Competitive Comparison of Orchard Therapeutics's Financial Strength

For the Biotechnology subindustry, Orchard 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.


Orchard Therapeutics's Financial Strength Distribution in the Biotechnology Industry

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

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



Orchard 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:

Orchard Therapeutics's Interest Expense for the months ended in Sep. 2023 was $-0.93 Mil. Its Operating Income for the months ended in Sep. 2023 was $-21.61 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $32.84 Mil.

Orchard Therapeutics's Interest Coverage for the quarter that ended in Sep. 2023 is

Orchard 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.

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

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(14.977 + 32.843) / 25.208
=1.90

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.

Orchard Therapeutics has a Z-score of -5.22, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -5.22 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.


Orchard Therapeutics  (NAS:ORTX) 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.

Orchard 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.


Orchard Therapeutics Financial Strength Related Terms

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Orchard Therapeutics (Orchard Therapeutics) Business Description

Traded in Other Exchanges
Address
245 Hammersmith Road, London, GBR, W6 8PW
Orchard Therapeutics PLC is a United Kingdom-based commercial-stage, a fully-integrated biopharmaceutical company. The company is engaged in transforming the lives of patients with serious and life-threatening rare diseases through autologous ex vivo gene therapies. It operates in three geographic regions: the United Kingdom, European Union, and the United States. Orchard Rx is focusing on its autologous ex vivo gene therapy approach on three therapeutic rare disease franchise areas: primary immune deficiencies, neurometabolic disorders, and hemoglobinopathies. Its portfolio includes Strimvelis, used for the treatment of ADA-SCID five lentiviral product candidates.
Executives
Bobby Gaspar director, officer: See Remarks ORCHARD THERAPEUTICS PLC, 108 CANNON STREET, LONDON X0 EC4N 6EU
Fmr Llc 10 percent owner, other: See Remark 1 245 SUMMER STREET, BOSTON MA 02210
Ra Capital Healthcare Fund Lp 10 percent owner 200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Ra Capital Management, L.p. 10 percent owner 200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Peter Kolchinsky 10 percent owner 200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Rajeev M. Shah 10 percent owner 200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Steven Altschuler director MEAD JOHNSON NUTRITION COMPANY, 2701 PATRIOT BLVD, GLENVIEW IL 60026
Jon Ellis director ORCHARD THERAPEUTICS PLC, 108 CANNON STREET, LONDON X0 EC4N 6EU
Plc Glaxosmithkline director, 10 percent owner 980 GREAT WEST ROAD, BRENTFORD MIDDLESEX X0 TW8 9GS
Marc Dunoyer director ORCHARD THERAPEUTICS PLC, 108 CANNON STREET, LONDON X0 EC4N 6EU
John T Curnutte director PORTOLA PHARMACEUTICALS, INC., 270 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Rowland Charles A Jr director 3338 LANCASHIRE RD, FURLONG PA 18925
Mark Rothera director, officer: See Remarks C/O AEGERION PHARMACEUTICALS, INC., 101 MAIN STREET, SUITE 1850, CAMBRIDGE MA 02142
James A Geraghty director C/O IDERA PHARMACEUTICALS, INC., 167 SIDNEY STREET, CAMBRIDGE MA 02139
Alicia Secor director 33 HAYDEN AVE., LEXINGTON MA 02421

Orchard Therapeutics (Orchard Therapeutics) Headlines

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