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ARTL (Artelo Biosciences) Altman Z-Score : N/A (As of Mar. 03, 2025)


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What is Artelo Biosciences Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Artelo Biosciences has a Altman Z-Score of N/A, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

During the past 10 years, Artelo Biosciences's highest Altman Z-Score was 55.71. The lowest was -68.64. And the median was -10.14.


Artelo Biosciences Altman Z-Score Historical Data

The historical data trend for Artelo Biosciences's Altman Z-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.

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Artelo Biosciences Altman Z-Score Chart

Artelo Biosciences Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Dec22 Dec23
Altman Z-Score
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Artelo Biosciences Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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Competitive Comparison of Artelo Biosciences's Altman Z-Score

For the Biotechnology subindustry, Artelo Biosciences's Altman Z-Score, along with its competitors' market caps and Altman Z-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.


Artelo Biosciences's Altman Z-Score Distribution in the Biotechnology Industry

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

* The bar in red indicates where Artelo Biosciences's Altman Z-Score falls into.



Artelo Biosciences Altman Z-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.

Artelo Biosciences's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.601+1.4*-6.4964+3.3*-1.2782+0.6*4.4568+1.0*0
=N/A

* 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 Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2024:
Total Assets was $7.14 Mil.
Total Current Assets was $4.99 Mil.
Total Current Liabilities was $0.70 Mil.
Retained Earnings was $-46.36 Mil.
Pre-Tax Income was -1.132 + -2.433 + -2.483 + -3.073 = $-9.12 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 0 + 0 + 0 + 0 = $0.00 Mil.
Market Cap (Today) was $3.45 Mil.
Total Liabilities was $0.78 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
=(4.986 - 0.697)/7.136
=0.601

X2=Retained Earnings/Total Assets
=-46.358/7.136
=-6.4964

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-9.121 - 0)/7.136
=-1.2782

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=3.454/0.775
=4.4568

X5=Revenue/Total Assets
=0/7.136
=0

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Artelo Biosciences has a Altman Z-Score of N/A indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Artelo Biosciences  (NAS:ARTL) Altman Z-Score Explanation

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, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Artelo Biosciences Altman Z-Score Related Terms

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Artelo Biosciences Business Description

Traded in Other Exchanges
N/A
Address
505 Lomas Santa Fe, Suite 160, Solana Beach, CA, USA, 92075
Artelo Biosciences Inc is a United States-based development-stage biopharmaceutical company. It is engaged in development of therapeutics that target lipid signaling pathways, including the endocannabinoid system, a family of receptors and neurotransmitters that form a biochemical communication network in body. It is focused on discovering, licensing, developing, and commercializing treatments that control endocannabinoid systems. The company pursues technologies and programs that offer proprietary approaches to cannabinoid-based therapies, also those derived from the cannabis plant and synthetic cannabinoids, as well as new chemical entities and compounds. The firm's flagship program is designed to be a patent-protected cannabinoid drug combination treatment for a rare and orphan disease.
Executives
Gregory D. Gorgas director, officer: See Remarks 888 PROSPECT, SUITE 210, LA JOLLA CA 92037
Tamara A Seymour director C/O SIGNAL GENETICS, INC., 5740 FLEET STREET, CARLSBAD CA 92008
Gregory Reyes director 200 CONNELL DRIVE, SUITE 1500, BERKELEY HEIGHTS NJ 07922
Matsui Connie director 3030 CALLAN RD, SAN DIEGO CA 92121
John W Beck director C/O RITTER PHARMACEUTICALS, INC., 1880 CENTURY PARK EAST, SUITE 1000, LOS ANGELES CA 90067
Robert Martin Emanuele director
David J Moss 10 percent owner C/O PEGASI ENERGY RESOURCES CORPORATION, 218 N. BROADWAY, SUITE 204, TYLER TX 75702
Georgia Erbez director 6300 DUMBARTON CIRCLE, FREMONT CA 94555
Steven Kelly director C/O INNOVIVE PHARMACEUTICALS, INC., 555 MADISON AVENUE, 25TH FLOOR, NEW YORK NY 10022
Douglas Blayney director C/O ARTELO BIOSCIENCES, INC., 888 PROSPECT ST, SUITE 210, LA JOLLA CA 92037
Peter Michael O'brien 10 percent owner C/O ARTELO BIOSCIENCES, INC., 888 PROSPECT ST, SUITE 210, LA JOLLA CA 92037