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Biohaven (NYSE:BHVN) Altman Z2-Score

: -3.06 (As of Today)
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Warning Sign:

Biohaven has a Altman Z2-Score of -3.06, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.

The historical rank and industry rank for Biohaven's Altman Z2-Score or its related term are showing as below:

BHVN' s Altman Z2-Score Range Over the Past 10 Years
Min: -3.06   Med: -1.75   Max: 6.08
Current: -3.06

During the past 2 years, Biohaven's highest Altman Z2-Score was 6.08. The lowest was -3.06. And the median was -1.75.


Biohaven Altman Z2-Score Historical Data

The historical data trend for Biohaven's Altman Z2-Score can be seen below:

* 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.

* Premium members only.

Biohaven Annual Data
Trend Dec20 Dec21
Altman Z2-Score
- -1.75

Biohaven Quarterly Data
Dec20 Jun21 Sep21 Dec21 Jun22 Sep22
Altman Z2-Score Premium Member Only - - -1.75 6.08 -3.06

Competitive Comparison

For the Biotechnology subindustry, Biohaven's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score 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.

   

Biohaven Altman Z2-Score Distribution

For the Biotechnology industry and Healthcare sector, Biohaven's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where Biohaven's Altman Z2-Score falls in comparison to its industry or sector. The grey bar indicates the Altman Z2-Score's extreme value range as defined by GuruFocus.



Biohaven Altman Z2-Score Calculation

Altman 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.

Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.

Biohaven's Altman Z2-Score for today is calculated with this formula:

Z=6.56*X1+3.26*X2+6.72*X3+1.05*X4_2
=6.56*0.3842+3.26*0+6.72*-1.2722+1.05*2.8286
=-3.06

* 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. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2022:
Total Assets was $135.65 Mil.
Total Current Assets was $80.55 Mil.
Total Current Liabilities was $28.44 Mil.
Retained Earnings was $0.00 Mil.
Pre-Tax Income was -67.637 + 0 + -49.429 + -55.497 = $-172.56 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Total Liabilities was $35.43 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(80.55 - 28.435)/135.646
=0.3842

X2=Retained Earnings/Total Assets
=0/135.646
=0

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-172.563 - 0)/135.646
=-1.2722

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(100.216 - 0)/35.43
=2.8286

The zones of discrimination were as such:

Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones

Biohaven has a Altman Z2-Score of -3.06 indicating it is in Distress Zones.


Biohaven  (NYSE:BHVN) Altman Z2-Score Explanation

The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4_2, Net Worth (Total Stockholders Equity - Preferred Stock)/Total Liabilities (NW/TL): it compares a company’s stock net worth with its total liabilities and can be used to assess the extent of its reliance on debt.

Read more about Altman Z2-Score, the original research on Z-Score and the additional research on Z2-Score.


Be Aware

Altman Z2-Score does not apply to financial companies.


Biohaven Altman Z2-Score Related Terms

Thank you for viewing the detailed overview of Biohaven's Altman Z2-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Biohaven (NYSE:BHVN) Business Description

Biohaven logo
Comparable Companies
Traded in Other Exchanges
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Address
Website
Biohaven Ltd is a commercial-stage biopharmaceutical company with a portfolio of innovative therapies to improve the lives of patients with debilitating neurological and neuropsychiatric diseases, including rare disorders. Biohaven's Neuroinnovation portfolio includes FDA-approved Nurtec ODT (rimegepant) for the acute and preventive treatment of migraine (EMA-approved as Vydura (rimegepant) for the acute treatment of migraine with or without aura, and prophylaxis of episodic migraine.
Executives
Robert J Hugin director C/O THE MEDICINES CO 8 CAMPUS DR PARSIPPANY NJ 07054
Michael Thomas Heffernan director C/O CORNERSTONE THERAPEUTICS INC. 1255 CRESCENT GREEN DRIVE, SUITE 250 CARY NC 27518
Julia P Gregory director 8800 TECHNOLOGY FOREST PLACE THE WOODLANDS TX 77381
Gregory Bailey director 4 A CHESHAM STREET LONDON X0 SW1X8DT
Kimberly Gentile officer: SVP, Clinical Operations C/O BIOHAVEN PHARMACEUTICAL HOLDING COMP 234 CHURCH STREET NEW HAVEN CT 06510
John W Childs director 111 HUNTINGTON AVENUE SUITE 2900 BOSTON MA 02199
Vlad Coric director, officer: Chief Executive Officer C/O BIOHAVEN PHARMACEUTICAL HOLDING COMP 234 CHURCH STREET NEW HAVEN CT 06510
Irina Antonijevic director 215 CHURCH STREET NEW HAVEN CT 06510
Matthew Buten officer: Chief Financial Officer 215 CHURCH STREET NEW HAVEN CT 06510
Kishan Mehta director 540 WEST 49TH STREET UNIT# PH1N NEW YORK NY 10019
Biohaven Pharmaceutical Holding Co Ltd. 10 percent owner 215 CHURCH STREET NEW HAVEN CT 06510
Bruce Car officer: Chief Scientific Officer AGIOS PHARMACEUTICALS, INC. 88 SIDNEY STREET CAMBRIDGE MA 02139

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