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Biogen Altman Z-Score

: 3.71 (As of Today)
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Good Sign:

Altman Z-score of 3.71 is strong.

Biogen has a Altman Z-Score of 3.71, 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 Biogen's Altman Z-Score or its related term are showing as below:

NAS:BIIB' s Altman Z-Score Range Over the Past 10 Years
Min: -0.84   Med: 6.74   Max: 80.25
Current: 3.71

-0.84
80.25

During the past 13 years, Biogen's highest Altman Z-Score was 80.25. The lowest was -0.84. And the median was 6.74.


Biogen Altman Z-Score Historical Data

The historical data trend for Biogen'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.

Biogen Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.60 6.09 5.34 4.65 3.81

Biogen Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Altman Z-Score 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 Premium Member Only Premium Member Only Premium Member Only 4.35 4.27 3.81 4.00 4.15

Competitive Comparison

For the Drug Manufacturers - General subindustry, Biogen'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.

   

Biogen Altman Z-Score Distribution

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

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



Biogen 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.

Biogen'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*0.1568+1.4*0.5681+3.3*0.106+0.6*3.1614+1.0*0.478
=3.71

* 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 Jun. 2021:
Total Assets was $24,470 Mil.
Total Current Assets was $7,184 Mil.
Total Current Liabilities was $3,347 Mil.
Retained Earnings was $13,901 Mil.
Pre-Tax Income was 582.1 + 467 + 352.9 + 957.8 = $2,360 Mil.
Interest Expense was -56.4 + -64.7 + -56 + -56.3 = $-233 Mil.
Revenue was 2775 + 2694 + 2852.6 + 3376.1 = $11,698 Mil.
Market Cap (Today) was $41,907 Mil.
Total Liabilities was $13,256 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
=(7183.7 - 3347.2)/24470.4
=0.1568

X2=Retained Earnings/Total Assets
=13900.7/24470.4
=0.5681

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2359.8 - -233.4)/24470.4
=0.106

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=41906.714/13255.6
=3.1614

X5=Revenue/Total Assets
=11697.7/24470.4
=0.478

The zones of discrimination were as such:

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

Biogen has a Altman Z-Score of 3.71 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.


Biogen  (NAS:BIIB) 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.


Biogen Altman Z-Score Related Terms

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


Biogen Business Description

Biogen logo
Industry
Healthcare » Drug Manufacturers NAICS : 325412 SIC : 2834
Address
225 Binney Street, Cambridge, MA, USA, 02142
Biogen and Idec merged in 2003, combining forces to market Biogen's multiple sclerosis drug Avonex and Idec's cancer drug Rituxan. Today, Rituxan and next-generation antibody Gazyva are marketed via a collaboration with Roche. Biogen also markets novel MS drugs Plegridy, Tysabri, Tecfidera, and Vumerity. In Japan, Biogen's MS portfolio is co-promoted by Eisai. Hemophilia therapies Eloctate and Alprolix (partnered with SOBI) were spun off as part of Bioverativ in 2017. Biogen has several drug candidates in phase 3 trials in neurology and neurodegenerative diseases and has launched Spinraza with partner Ionis. Aduhelm was approved as the firm's first Alzheimer's disease therapy in June 2021.
Executives
Mcdonnell Michael R officer: EVP, Chief Financial Officer C/O IQVIA HOLDINGS INC. 83 WOOSTER HEIGHTS ROAD DANBURY CT 06810
Gregory Ginger officer: EVP, Human Resources C/O BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142
Kramer Robin officer: VP, Chief Accounting Officer 999 VANDERBILT BEACH ROAD 3RD FLOOR NAPLES FL 34109
Sherwin Stephen A director C/O CELL GENESYS, INC. 500 FORBES BLVD. SOUTH SAN FRANCISCO CA 94080
Hawkins William A director MEDTRONIC INC 710 MEDTRONIC PKWY, MS LC310 MINNEAPOLIS MN 55432-5604
Dorsa Caroline director BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142
Papadopoulos Stelios director 3 SOMERSET DRIVE SOUTH GREAT NECK NY 11020
Pangia Robert W director 3965 FREEDOM CIRCLE SANTA CLARA CA 95054
Leaming Nancy director C/O HOLOGIC INC BEDFORD MA 01730
Rowinsky Eric K director IMCLONE SYSTEMS INCORPORATED 180 VARICK STREET, 6TH FLOOR NEW YORK NY 10014
Denner Alexander J director C/O SARISSA CAPITAL MANAGEMENT LP 660 STEAMBOAT ROAD, 3RD FLOOR GREENWICH CT 06830
Posner Brian S director 14 CAMBRIDGE CENTER CAMBRIDGE MA 02142
Mulligan Richard director C/O ICAHN CAPITAL LP 767 FIFTH AVENUE, SUITE 4700 NEW YORK NY 10153
Mantas Jesus B director BIOGEN INC. 225 BINNEY STREET CAMBRIDGE MA 02142
Galdes Alphonse officer: EVP Pharmaceutical Oper & Tech BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142

Biogen Headlines

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