Editas Medicine (NAS:EDIT) Altman Z-Score

: -0.69 (As of Today)

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Warning Sign:

Altman Z-score of -0.69 is in distress zone. This implies bankruptcy possibility in the next two years.

Editas Medicine has a Altman Z-Score of -0.69, 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 Editas Medicine's Altman Z-Score or its related term are showing as below:

EDIT' s Altman Z-Score Range Over the Past 10 Years
Min: -2.17 Med: 2.74 Max: 15.07
Current: -0.69

During the past 10 years, Editas Medicine's highest Altman Z-Score was 15.07. The lowest was -2.17. And the median was 2.74.

Editas Medicine Altman Z-Score Historical Data

The historical data trend for Editas Medicine'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.

Editas Medicine Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Altman Z-Score

2.41

2.53

13.32

6.95

-1.23

Editas Medicine Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Altman Z-Score																1.79	1.33	-1.23	-2.17	-0.54

Competitive Comparison

For the Biotechnology subindustry, Editas Medicine'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.

Annual Data Quarterly Data

Editas Medicine Altman Z-Score Distribution

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

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

Editas Medicine 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.

Editas Medicine's Altman Z-Score for today is calculated with this formula:

1.2

1.4

3.3

0.6

1.0

1.2

0.7131

1.4

-2.1542

3.3

-0.3797

0.6

4.4858

1.0

0.0356

-0.69

Trailing Twelve Months (TTM) ended in Jun. 2023:
Total Assets was $541.95 Mil.
Total Current Assets was $440.98 Mil.
Total Current Liabilities was $54.51 Mil.
Retained Earnings was $-1,167.46 Mil.
Pre-Tax Income was -40.29 + -49.036 + -60.738 + -55.726 = $-205.79 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 2.887 + 9.851 + 6.536 + 0.042 = $19.32 Mil.
Market Cap (Today) was $637.14 Mil.
Total Liabilities was $142.04 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
	=	(440.978 - 54.513)	/	541.953
	=	0.7131

X2	=	Retained Earnings	/	Total Assets
	=	-1167.457	/	541.953
	=	-2.1542

X3	=	Earnings Before Interest and Taxes	/	Total Assets
	=	(Pre-Tax Income - Interest Expense)	/	Total Assets
	=	(-205.79 - 0)	/	541.953
	=	-0.3797

X4	=	Market Value Equity	/	Book Value of Total Liabilities
	=	Market Cap	/	Total Liabilities
	=	637.143	/	142.036
	=	4.4858

X5	=	Revenue	/	Total Assets
	=	19.316	/	541.953
	=	0.0356

The zones of discrimination were as such:

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

Editas Medicine has a Altman Z-Score of -0.69 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.

Editas Medicine (NAS:EDIT) 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.

Be Aware

Altman Z-Score does not apply to financial companies.

Editas Medicine Altman Z-Score Related Terms

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

Editas Medicine (NAS:EDIT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Editas Medicine Inc (NAS:EDIT) » Definitions » Altman Z-Score

Comparable Companies

Traded in Other Exchanges

8EM:Germany

Address

11 Hurley Street, Cambridge, MA, USA, 02141

Website

https://www.editasmedicine.com

Editas Medicine Inc is a genome editing company. It is engaged in treating patients with genetically defined diseases by correcting disease-causing genes. The company focuses on developing a proprietary genome editing platform based on clustered, regularly interspaced short palindromic repeats (CRISPR)/ CRISPR-associated protein 9 (Cas9 technology). It has developed CRISPR/Cas9 technology which uses a protein-RNA (ribonucleic acid) complex composed of the Cas9 enzyme bound to a guide RNA molecule designed to recognize a DNA (deoxyribonucleic acid) sequence that requires repair. The company is engaged in developing and commercializing genome editing technology.

Executives

Linda Burkly	officer: EVP, CHIEF SCIENTIFIC OFFICER	1 MAIN STREET, CAMBRIDGE MA 02142
Erick Lucera	officer: EVP, CHIEF FINANCIAL OFFICER	138 THISTLE ROAD, NORTH ANDOVER MA 08145
Elliott M. Levy	director	C/O OMEGA THERAPEUTICS, INC., 20 ACORN PARK D, CAMBRIDGE MA 02140
Baisong Mei	officer: SVP, CHIEF MEDICAL OFFICER	C/O EDITAS MEDICINE, INC., 1 MAIN STREET, CAMBRIDGE MA 02142
Gilmore Neil O'neill	director, officer: CEO	215 FIRST STREET, CAMBRIDGE MA 02142
Bernadette Connaughton	director	C/O VISTERRA, INC., ONE KENDALL SQUARE, #B3301, CAMBRIDGE MA 02139
Emma Reeve	director	C/O PAREXEL INTERNATIONAL CORPORATION, 195 WEST STREET, WALTHAM MA 02451
Bruce Eaton	officer: EVP, Chief Business Officer	C/O EDITAS MEDICINE, INC., 1 MAIN STREET, CAMBRIDGE MA 02142
Mark S Shearman	officer: EVP, Chief Scientific Officer	C/O APPLIED GENETIC TECHNOLOGIES CORP, 11801 RESEARCH DRIVE, SUITE D, ALACHUA FL 32615
Meeta Chatterjee	director	C/O EDITAS MEDICINE, INC., 1 MAIN STREET, CAMBRIDGE MA 02142
Lisa Anne Michaels	officer: EVP/Chief Medical Officer	C/O EDITAS MEDICINE, INC., 1 MAIN STREET, CAMBRIDGE MA 02142
Michelle Robertson	officer: Chief Financial Officer	C/O MOMENTA PHARMACEUTICALS, INC., 301 BINNEY STREET, CAMBRIDGE MA 02142
Judith R Abrams	officer: Chief Medical Officer	1430 US HIGHWAY 206, SUITE 200, BEDMINSTER NJ 07921
Eric Ek	officer: Interim CFO	C/O EDITAS MEDICINE, INC., 11 HURLEY STREET, CAMBRIDGE MA 02141
David Scadden	director	88 SIDNEY STREET, CAMBRIDGE MA 02139