Intercept Pharmaceuticals (NAS:ICPT) Altman Z2-Score

: -12.28 (As of Today)

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Warning Sign:

Intercept Pharmaceuticals has a Altman Z2-Score of -12.28, 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 Intercept Pharmaceuticals's Altman Z2-Score or its related term are showing as below:

ICPT' s Altman Z2-Score Range Over the Past 10 Years
Min: -31.97 Med: -6.58 Max: 26.98
Current: -12.28

During the past 13 years, Intercept Pharmaceuticals's highest Altman Z2-Score was 26.98. The lowest was -31.97. And the median was -6.58.

Intercept Pharmaceuticals Altman Z2-Score Historical Data

The historical data trend for Intercept Pharmaceuticals'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.

Intercept Pharmaceuticals Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Altman Z2-Score

-10.28

-6.95

-12.19

-12.39

-10.58

Intercept Pharmaceuticals Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Altman Z2-Score																-12.56	-12.62	-10.33	-10.58	-12.28

Competitive Comparison

For the Biotechnology subindustry, Intercept Pharmaceuticals'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

Intercept Pharmaceuticals Altman Z2-Score Distribution

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

* The bar in red indicates where Intercept Pharmaceuticals'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.

Intercept Pharmaceuticals 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.

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

6.56

3.26

6.72

1.05

X4_2

6.56

0.5621

3.26

-4.3029

6.72

-0.3126

1.05

0.1538

-12.28

Trailing Twelve Months (TTM) ended in Mar. 2023:
Total Assets was $504.1 Mil.
Total Current Assets was $490.5 Mil.
Total Current Liabilities was $207.1 Mil.
Retained Earnings was $-2,169.0 Mil.
Pre-Tax Income was -31.881 + -17 + -104.087 + -20.321 = $-173.3 Mil.
Interest Expense was -2.809 + -2.442 + -4.596 + -5.865 = $-15.7 Mil.
Total Liabilities was $436.9 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
	=	(490.457 - 207.117)	/	504.085
	=	0.5621

X2	=	Retained Earnings	/	Total Assets
	=	-2169.023	/	504.085
	=	-4.3029

X3	=	Earnings Before Interest and Taxes	/	Total Assets
	=	(Pre-Tax Income - Interest Expense)	/	Total Assets
	=	(-173.289 - -15.712)	/	504.085
	=	-0.3126

X4_2	=	Net Worth	/	Total Liabilities
	=	(Total Stockholders Equity - Preferred Stock)	/	Total Liabilities
	=	(67.185 - 0)	/	436.9
	=	0.1538

The zones of discrimination were as such:

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

Intercept Pharmaceuticals has a Altman Z2-Score of -12.28 indicating it is in Distress Zones.

Intercept Pharmaceuticals (NAS:ICPT) 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.

Intercept Pharmaceuticals Altman Z2-Score Related Terms

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Intercept Pharmaceuticals (NAS:ICPT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Intercept Pharmaceuticals Inc (NAS:ICPT) » Definitions » Altman Z2-Score

Comparable Companies

Traded in Other Exchanges

I4P:Germany

Address

10 Hudson Yards, 37th Floor, New York, NY, USA, 10001

Website

https://www.interceptpharma.com

Intercept Pharmaceuticals is a biotech company focused on developing and commercializing novel therapeutics to treat chronic liver diseases. Obeticholic acid, or OCA, is an agonist of the farnesoid X receptor. OCA was approved as Ocaliva to treat primary biliary cirrhosis in 2016 and is being developed for a variety of chronic liver diseases, including nonalcoholic steatohepatitis, or NASH.

Executives

Andrew Saik	officer: EVP & Chief Financial Officer	640 LEE ROAD, CHESTERBROOK PA 19087
M Michelle Berrey	officer: President, R&D and CMO	303A COLLEGE ROAD EAST, PRINCETON NJ 08450
Dagmar Rosa-bjorkeson	director	C/O BAXALTA INCORPORATED, 1200 LAKESIDE DRIVE, BANNOCKBURN IL 60015
Rocco Venezia	officer: Chief Accounting Officer	C/O INTERCEPT PHARMACEUTICALS, INC., 10 HUDSON YARDS, 37TH FLOOR, NEW YORK NY 10001
Lisa Defrancesco	officer: SVP, IR & Corp. Affairs	C/O INTERCEPT PHARMACEUTICALS, INC., 10 HUDSON YARDS, FLOOR 37, NEW YORK NY 10001
Linda M Richardson	officer: EVP & Chief Commercial Officer	2505 MERIDIAN PKWY, SUITE 340, C/O CHIMERIX, INC., DURHAM NC 27713
Jared Freedberg	officer: General Counsel and Secretary	300 THE AMERICAN ROAD, MORRIS PLAINS NJ 07950
Bryan Ball	officer: Chief Quality Officer	300 THE AMERICAN ROAD, MORRIS PLAINS NJ 07950
Paolo Fundaro	director, 10 percent owner	C/O GENEXTRA S.P.A.,, VIA G. DE GRASSI, 11, MILAN L6 20123
Keith Michael Gottesdiener	director	900 FIFTH AVENUE, #8C, NEW YORK NY 10021
Luca Benatti	director	C/O INTERCEPT PHARMACEUTICALS, INC., 450 WEST 15TH STREET, SUITE 505, NEW YORK NY 10011
Daniel G Welch	director	4611 UNIVERSITY DR, 4 UNIVERSITY PLACE, DURHAM NC 27707
Daniel Bradbury	director	BIOBRIT, LLC, 2223 AVENIDA DE LA PLAYA, SUITE 108, LA JOLLA CA 92037
Nancy Miller-rich	director	C/O INTERCEPT PHARMACEUTICALS, INC., 10 HUDSON YARDS, 37TH FL, NEW YORK NY 10001
Gino Santini	director	C/O AMAG PHARMACEUTICALS, INC., 1100 WINTER STREET, WALTHAM MA 02451