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Moderna (Moderna) Altman Z-Score : 8.73 (As of May. 18, 2024)


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What is Moderna 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 8.72 is strong.

Moderna has a Altman Z-Score of 8.73, 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 Moderna's Altman Z-Score or its related term are showing as below:

MRNA' s Altman Z-Score Range Over the Past 10 Years
Min: -0.57   Med: 7.74   Max: 27.87
Current: 8.72

During the past 8 years, Moderna's highest Altman Z-Score was 27.87. The lowest was -0.57. And the median was 7.74.


Moderna Altman Z-Score Historical Data

The historical data trend for Moderna'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.

Moderna Altman Z-Score Chart

Moderna Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial 7.93 4.83 9.24 9.50 6.16

Moderna Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 9.53 7.74 5.37 6.16 7.18

Competitive Comparison of Moderna's Altman Z-Score

For the Biotechnology subindustry, Moderna'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.


Moderna's Altman Z-Score Distribution in the Biotechnology Industry

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

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



Moderna 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.

Moderna'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*0.4316+1.4*0.7431+3.3*-0.285+0.6*13.0196+1.0*0.3038
=8.73

* 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 Mar. 2024:
Total Assets was $16,729 Mil.
Total Current Assets was $9,600 Mil.
Total Current Liabilities was $2,380 Mil.
Retained Earnings was $12,431 Mil.
Pre-Tax Income was -1165 + 70 + -1958 + -1749 = $-4,802 Mil.
Interest Expense was -6 + -6 + -10 + -13 = $-35 Mil.
Revenue was 167 + 2813 + 1787 + 316 = $5,083 Mil.
Market Cap (Today) was $50,933 Mil.
Total Liabilities was $3,912 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
=(9600 - 2380)/16729
=0.4316

X2=Retained Earnings/Total Assets
=12431/16729
=0.7431

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-4802 - -35)/16729
=-0.285

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=50932.560/3912
=13.0196

X5=Revenue/Total Assets
=5083/16729
=0.3038

The zones of discrimination were as such:

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

Moderna has a Altman Z-Score of 8.73 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.


Moderna  (NAS:MRNA) 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.


Moderna Altman Z-Score Related Terms

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


Moderna (Moderna) Business Description

Address
200 Technology Square, Cambridge, MA, USA, 02139
Moderna is a commercial-stage biotech that was founded in 2010 and had its initial public offering in December 2018. The firm's mRNA technology was rapidly validated with its COVID-19 vaccine, which was authorized in the United States in December 2020. Moderna had 39 mRNA development candidates in clinical trials as of mid-2023. Programs span a wide range of therapeutic areas, including infectious disease, oncology, cardiovascular disease, and rare genetic diseases.
Executives
Stephen Hoge officer: President C/O MODERNA, INC., 200 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
James M Mock officer: Chief Financial Officer 940 WINTER STREET, PERKINELMER, WALTHAM MA 02451
Shannon Thyme Klinger officer: Chief Legal Officer 200 TECHNOLOGY SQUARE, SUITE 300, CAMBRIDGE MA 02139
Noubar Afeyan director, 10 percent owner C/O FLAGSHIP PIONEERING, INC., 55 CAMBRIDGE PARKWAY, SUITE 800E, CAMBRIDGE MA 02142
Arpa Garay officer: Chief Commercial Officer 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Stephane Bancel director, officer: Chief Executive Officer 320 BENT STREET, CAMBRIDGE MA 02141
Juan Andres officer: See Remarks C/O MODERNA, INC., 200 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Paul Burton officer: Chief Medical Officer 200 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
David W Meline officer: Chief Financial Officer 3M COMPANY, 3M OFFICE OF GENERAL COUNSEL, ST PAUL MN 55144-1000
Jorge M Gomez officer: See Remarks C/O DENTSPLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Paul Sagan director AKAMAI TECHNOLOGIES INC, 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Tal Zvi Zaks officer: Chief Medical Officer C/O ADAPTIMMUNE THERAPEUTICS PLC, 60 JUBILEE AVE, MILTON PARK, ABINGDON, OXFORDSHIRE X0 OX14 4RX
Lori M. Henderson officer: General Counsel and Secretary MOLDFLOW CORP, 430 BOSTON POST ROAD, WAYLAND MA 01778
Le Goff Corinne officer: Chief Commercial Officer 200 TECHNOLOGY SQUARE, SUITE 300, CAMBRIDGE MA 02139
Elizabeth G Nabel director BRIGHAM AND WOMEN'S HOSPITAL, 75 FRANCIS ST, BOSTON MA 02115

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