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HOTH (Hoth Therapeutics) Altman Z-Score : N/A (As of Mar. 18, 2025)


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What is Hoth 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.

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

During the past 7 years, Hoth Therapeutics's highest Altman Z-Score was -2.01. The lowest was -3.58. And the median was -2.80.


Hoth Therapeutics Altman Z-Score Historical Data

The historical data trend for Hoth 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.

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Hoth Therapeutics Altman Z-Score Chart

Hoth Therapeutics Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
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Hoth Therapeutics Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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Competitive Comparison of Hoth Therapeutics's Altman Z-Score

For the Biotechnology subindustry, Hoth 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.


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

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

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



Hoth 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.

Hoth 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*0.8941+1.4*-7.0723+3.3*-0.9037+0.6*17.1427+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 $8.31 Mil.
Total Current Assets was $8.24 Mil.
Total Current Liabilities was $0.81 Mil.
Retained Earnings was $-58.75 Mil.
Pre-Tax Income was -2.132 + -1.632 + -2.041 + -1.702 = $-7.51 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 0 + 0 + 0 + 0 = $0.00 Mil.
Market Cap (Today) was $13.94 Mil.
Total Liabilities was $0.81 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
=(8.237 - 0.81)/8.307
=0.8941

X2=Retained Earnings/Total Assets
=-58.75/8.307
=-7.0723

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-7.507 - 0)/8.307
=-0.9037

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=13.937/0.813
=17.1427

X5=Revenue/Total Assets
=0/8.307
=0

The zones of discrimination were as such:

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

Hoth Therapeutics 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.


Hoth Therapeutics  (NAS:HOTH) 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.


Hoth Therapeutics Altman Z-Score Related Terms

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Hoth Therapeutics Business Description

Traded in Other Exchanges
N/A
Address
590 Madison Avenue, 21st Floor, New York, NY, USA, 10022
Hoth Therapeutics Inc is a development-stage biopharmaceutical company. It is focused on targeted therapeutics for patients suffering from conditions such as atopic dermatitis, also known as eczema, chronic wounds, psoriasis, asthma, and acne. The company owns the BioLexa Platform which combines an FDA-approved zinc chelator with one or more approved antibiotics in a topical dosage form to address unchecked eczema flare-ups.
Executives
Robb Knie director, officer: CEO and President C/O INVENTERGY GLOBAL, INC., 900 EAST HAMILTON AVENUE SUITE 180, CAMPBELL CA 95008
Jeff Pavell director 1 ROCKEFELLER PLAZA, SUITE 1039, NEW YORK NY 10020
Stefanie Johns officer: Chief Scientific Officer 1 ROCKEFELLER PLAZA, SUITE 1039, NEW YORK NY 10020
Anthony Hayes director 1796 SHADY LANE, COLUMBIA SC 29206
Wayne Linsley director 1 ROCKEFELLER PLAZA, SUITE 1039, NEW YORK NY 10020
Graig Springer director 1 ROCKEFELLER PLAZA, SUITE 1039, NEW YORK NY 10020
Spherix Inc 10 percent owner 725 FIFTH AVENUE, 22ND FLOOR, NEW YORK NY 10022
Vadim Mats director 285 GRAND AVENUE, ENGLEWOOD NJ 07631
Rice Kenneth L Jr director C/O 85 MAIN STREET, HOPKINTON MA 01748
David Sarnoff director 1 ROCKEFELLER PLAZA, SUITE 1039, NEW YORK NY 10020
David S. Briones officer: Chief Financial Officer C/O PETRO RIVER OIL COMPANY, 1980 POST OAK BLVD., SUITE 2020, HOUSTON TX 77056
Matthew D. Eitner 10 percent owner 44 BRAMS HILL DRIVE, MAHWAH NJ 07430
Kevin Jess Poor 10 percent owner 750 BEULAHS LANE, IDAHO FALLS ID 83401
James P. Ahern 10 percent owner 20 WEST 64TH STREET, APT 18RS, NEW YORK NY 10023