GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Compass Therapeutics Inc (NAS:CMPX) » Definitions » Altman Z-Score

CMPX (Compass Therapeutics) Altman Z-Score : 8.38 (As of Mar. 19, 2025)


View and export this data going back to 2020. Start your Free Trial

What is Compass Therapeutics 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.

Good Sign:

Altman Z-score of 8.87 is strong.

Compass Therapeutics has a Altman Z-Score of 8.38, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

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 Compass Therapeutics's Altman Z-Score or its related term are showing as below:

CMPX' s Altman Z-Score Range Over the Past 10 Years
Min: 4.17   Med: 4.17   Max: 8.87
Current: 8.87

During the past 7 years, Compass Therapeutics's highest Altman Z-Score was 8.87. The lowest was 4.17. And the median was 4.17.


Compass Therapeutics Altman Z-Score Historical Data

The historical data trend for Compass Therapeutics'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.

* Premium members only.

Compass Therapeutics Altman Z-Score Chart

Compass Therapeutics Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Altman Z-Score
Get a 7-Day Free Trial - - - - 4.17

Compass Therapeutics Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 5.75 10.89 4.17

Competitive Comparison of Compass Therapeutics's Altman Z-Score

For the Biotechnology subindustry, Compass Therapeutics'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.


Compass Therapeutics's Altman Z-Score Distribution in the Biotechnology Industry

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

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



Compass Therapeutics 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.

Compass Therapeutics'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*0.8823+1.4*-2.5974+3.3*-0.3517+0.6*20.1896+1.0*0.0061
=8.38

* 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 Dec. 2024:
Total Assets was $140.40 Mil.
Total Current Assets was $132.75 Mil.
Total Current Liabilities was $8.87 Mil.
Retained Earnings was $-364.68 Mil.
Pre-Tax Income was -15.033 + -10.481 + -13.076 + -10.787 = $-49.38 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 0 + 0 + 0.85 + 0 = $0.85 Mil.
Market Cap (Today) was $306.30 Mil.
Total Liabilities was $15.17 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
=(132.751 - 8.874)/140.403
=0.8823

X2=Retained Earnings/Total Assets
=-364.683/140.403
=-2.5974

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-49.377 - 0)/140.403
=-0.3517

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=306.297/15.171
=20.1896

X5=Revenue/Total Assets
=0.85/140.403
=0.0061

The zones of discrimination were as such:

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

Compass Therapeutics has a Altman Z-Score of 8.38 indicating it is in Safe Zones.

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


Compass Therapeutics  (NAS:CMPX) 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.


Compass Therapeutics Altman Z-Score Related Terms

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


Compass Therapeutics Business Description

Traded in Other Exchanges
N/A
Address
80 Guest Street, Suite 601, Boston, MA, USA, 02135
Compass Therapeutics Inc is a clinical-stage biopharmaceutical company that develops proprietary antibody therapeutics intended to engage the immune system to treat both solid tumors and hematological malignancies. It is engaged in drug discovery by leveraging its proprietary antibody discovery engine to broadly drug the immune system and identify optimal combinations empirically. Through StitchMabs and common light chain platforms, these combinatorial insights can be rapidly translated into tailored bispecifics with monoclonal-like manufacturability. Its pipeline is comprised of three product candidates, CTX-009, CTX-471, and CTX-8371.
Executives
Richard S Lindahl director NEXTEL, 2001 EDMUND HALLEY DR, RESTON VA 20191
Thomas J. Schuetz director, officer: Chief Executive Officer C/O RELYPSA, INC., 700 SAGINAW DR., REDWOOD CITY CA 94063
David M Wurzer director C/O CURAGEN CORP, 555 LONG WHARF DR. 11TH FL., NEW HAVEN CT 06511
Vered Bisker-leib officer: Chief Operating Officer C/O COMPASS, 245 FIRST STREET, 3RD FLOOR, CAMBRIDGE MA 02142
Orbimed Advisors Llc director, 10 percent owner 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Carl L Gordon director, 10 percent owner 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
James P Boylan director C/O ENAVATE SCIENCES, 2884 SAND HILL RD., STE 100, MENLO PARK CA 94025
Ellen Chiniara director 51 SAWYER ROAD, SUITE 200, WALTHAM MA 02453
Mary Ann Gray director 201 W 70TH ST, SUITE 23K, NEW YORK NY 10023
Philip Ferneau director 10 ALLEN STREET, HANOVER NH 03755
Orbimed Capital Gp V Llc director, 10 percent owner 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Orbimed Genesis Gp Llc director, 10 percent owner 601 LEXINGTON AVENUE, 54TH FLOOR, NEW YORK NY 10022
Miranda Jayne Toledano director C/O COMPASS THERAPEUTICS, INC., 80 GUEST STREET, SUITE 601, BOSTON MA 02135
Susan Kalled officer: Chief Scientific Officer COMPASS THERAPEUTICS, INC., 80 GUEST ST., SUITE 601, BOSTON MA 02135
Brett Kaplan director C/O PREVAIL THERAPEUTICS INC., 430 EAST 29TH STREET, SUITE 940, NEW YORK NY 10016