Biogen (NAS:BIIB) Altman Z2-Score

: 5.73 (As of Today)

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Good Sign:

Biogen has a Altman Z2-Score of 5.73, indicating it is in Safe Zones. This implies the Altman Z2-Score is strong.

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 Biogen's Altman Z2-Score or its related term are showing as below:

BIIB' s Altman Z2-Score Range Over the Past 10 Years
Min: 0.96 Med: 6.67 Max: 28.13
Current: 5.73

During the past 13 years, Biogen's highest Altman Z2-Score was 28.13. The lowest was 0.96. And the median was 6.67.

Biogen Altman Z2-Score Historical Data

The historical data trend for Biogen'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.

Biogen Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Altman Z2-Score

6.16

5.96

5.63

4.93

4.33

Biogen Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
Altman Z2-Score																4.06	4.33	4.55	4.81	5.73

Competitive Comparison

For the Drug Manufacturers - General subindustry, Biogen'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.

Annual Data Quarterly Data

Biogen Altman Z2-Score Distribution

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

* The bar in red indicates where Biogen'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.

Biogen 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.

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

6.56

3.26

6.72

1.05

X4_2

6.56

0.2349

3.26

0.6404

6.72

0.1469

1.05

1.0569

5.73

Trailing Twelve Months (TTM) ended in Sep. 2022:
Total Assets was $24,854 Mil.
Total Current Assets was $9,766 Mil.
Total Current Liabilities was $3,926 Mil.
Retained Earnings was $15,916 Mil.
Pre-Tax Income was 1371.1 + 1269.5 + 347.4 + 405 = $3,393 Mil.
Interest Expense was -59.9 + -65.8 + -66.1 + -66.3 = $-258 Mil.
Total Liabilities was $12,087 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
	=	(9765.8 - 3926.4)	/	24854.2
	=	0.2349

X2	=	Retained Earnings	/	Total Assets
	=	15916.1	/	24854.2
	=	0.6404

X3	=	Earnings Before Interest and Taxes	/	Total Assets
	=	(Pre-Tax Income - Interest Expense)	/	Total Assets
	=	(3393 - -258.1)	/	24854.2
	=	0.1469

X4_2	=	Net Worth	/	Total Liabilities
	=	(Total Stockholders Equity - Preferred Stock)	/	Total Liabilities
	=	(12775.5 - 0)	/	12087.4
	=	1.0569

The zones of discrimination were as such:

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

Biogen has a Altman Z2-Score of 5.73 indicating it is in Safe Zones.

Biogen (NAS:BIIB) 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.

Be Aware

Altman Z2-Score does not apply to financial companies.

Biogen Altman Z2-Score Related Terms

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Biogen (NAS:BIIB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Biogen Inc (NAS:BIIB) » Definitions » Altman Z2-Score

Comparable Companies

Traded in Other Exchanges

BIIB:Mexico IDP:Germany BIIB34:Brazil BIIB:Austria BIIB:Argentina

Address

225 Binney Street, Cambridge, MA, USA, 02142

Website

http://www.biogen.com

Biogen and Idec merged in 2003, combining forces to market Biogen's multiple sclerosis drug Avonex and Idec's cancer drug Rituxan. Today, Rituxan and next-generation antibody Gazyva are marketed via a collaboration with Roche. Biogen also markets novel MS drugs Plegridy, Tysabri, Tecfidera, and Vumerity. In Japan, Biogen's MS portfolio is co-promoted by Eisai. Hemophilia therapies Eloctate and Alprolix (partnered with SOBI) were spun off as part of Bioverativ in 2017. Biogen has several drug candidates in phase 3 trials in neurology and neurodegenerative diseases and has launched Spinraza with partner Ionis. Aduhelm was approved as the firm's first Alzheimer's disease therapy in June 2021, followed by Leqembi in January 2023.

Executives

Christopher Viehbacher	director, officer: President and CEO	C/O AXCELLA HEALTH, INC., 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139
Nicole Murphy	officer: Head of Pharm Ops and Tech	BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142
Rachid Izzar	officer: Head of Alzheimer's Disease	BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142
Jones William D /ca/	director
Maria C Freire	director	C/O ALEXANDRIA REAL ESTATE EQUITIES, INC, 26 NORTH EUCLID AVENUE, PASADENA CA 91101
Michael R Mcdonnell	officer: EVP, Chief Financial Officer	C/O IQVIA HOLDINGS INC., 83 WOOSTER HEIGHTS ROAD, DANBURY CT 06810
Alphonse Galdes	officer: EVP Pharmaceutical Oper & Tech	BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142
William A Hawkins	director	MEDTRONIC INC, 710 MEDTRONIC PKWY, MS LC310, MINNEAPOLIS MN 55432-5604
Jesus B Mantas	director	BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142
Robin Kramer	officer: VP, Chief Accounting Officer	999 VANDERBILT BEACH ROAD, 3RD FLOOR, NAPLES FL 34109
Daniel Karp	officer: EVP, Corporate Development	225 BINNEY STREET, CAMBRIDGE MA 02142
Jeffrey D Capello	officer: EVP & Chief Financial Officer	C/O NEOGEN CORP., 620 LESHER PLACE, LANSING MI 48912
Chirfi Guindo	officer: EVP Glob. Mkt Acc & Cust Innov	C/O BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142
Ginger Gregory	officer: EVP, Human Resources	C/O BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142
Jean-paul Kress	officer: EVP Pres Int'l & Global Hd GTO	215 FIRST STREET, SUITE 415, CAMBRIDGE MA 02142