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Guardant Health Altman Z-Score

: 2.71 (As of Today)
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Warning Sign:

Altman Z-score of 2.91 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

Guardant Health has a Altman Z-Score of 2.71, indicating it is in Grey Zones. This implies that Guardant Health is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

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 Guardant Health's Altman Z-Score or its related term are showing as below:

NAS:GH' s Altman Z-Score Range Over the Past 10 Years
Min: -0.59   Med: 21.37   Max: 39.59
Current: 2.91

-0.59
39.59

During the past 5 years, Guardant Health's highest Altman Z-Score was 39.59. The lowest was -0.59. And the median was 21.37.


Guardant Health Altman Z-Score Historical Data

The historical data trend for Guardant Health'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.

Guardant Health Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
- - 18.45 27.05 8.33

Guardant Health Quarterly Data
Dec16 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 39.59 8.33 6.42 5.08 4.82

Competitive Comparison

For the Diagnostics & Research subindustry, Guardant Health'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.

   

Guardant Health Altman Z-Score Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Guardant Health's Altman Z-Score distribution charts can be found below:

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



Guardant Health 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.

Guardant Health'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*0.67+1.4*-0.412+3.3*-0.179+0.6*4.8645+1.0*0.1545
=2.71

* 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 Sep. 2021:
Total Assets was $2,225.5 Mil.
Total Current Assets was $1,593.4 Mil.
Total Current Liabilities was $102.3 Mil.
Retained Earnings was $-916.9 Mil.
Pre-Tax Income was -107.43 + -97.492 + -107.248 + -92.782 = $-405.0 Mil.
Interest Expense was -0.644 + -0.644 + -0.646 + -4.736 = $-6.7 Mil.
Revenue was 94.779 + 92.101 + 78.665 + 78.316 = $343.9 Mil.
Market Cap (Today) was $7,375.2 Mil.
Total Liabilities was $1,516.1 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
=(1593.412 - 102.304)/2225.534
=0.67

X2=Retained Earnings/Total Assets
=-916.914/2225.534
=-0.412

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-404.952 - -6.67)/2225.534
=-0.179

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=7375.169/1516.114
=4.8645

X5=Revenue/Total Assets
=343.861/2225.534
=0.1545

The zones of discrimination were as such:

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

Guardant Health has a Altman Z-Score of 2.71 indicating it is in Grey Zones.

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


Guardant Health  (NAS:GH) 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.


Guardant Health Altman Z-Score Related Terms

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


Guardant Health Business Description

Guardant Health logo
Industry
Traded in Other Exchanges
Address
505 Penobscot Drive, Redwood City, CA, USA, 94063
Guardant Health, based in Redwood City, California, provides cancer blood tests and analytics for clinical and research use, and the firm maintains research partnerships with large biopharmaceutical companies. The company offers Guardant 360, a blood-based (liquid biopsy) test for treatment selection in advanced stage cancer, and Guardant Omni, a broader gene panel for immuno-oncology research. The company's pipeline includes Guardant Reveal (formerly Lunar-1), for cancer recurrence detection in survivors, and Lunar-2, a liquid biopsy for early detection of cancer in higher-risk individuals, with an initial focus on colorectal cancer. Additionally, Guardant offers research development services. The United States accounts for 90% of total revenue, and other markets the remaining 10%.
Executives
Talasaz Amirali director, officer: Chairman, President and COO 18 ISABELLA AVENUE ATHERTON CA 94027
Kaul Samir director C/O KHOSLA VENTURES 3000 SAND HILL ROAD, BLDG. 3, SUITE 170 MENLO PARK CA 94025
Meresman Stanley J director 2071 HUNTINGTON LANE LOS ALTOS CA 94024
Svf Bluebird (cayman) Ltd 10 percent owner C/O WALKERS CORPORATE LIMITED 27 HOSPITAL ROAD GEORGE TOWN E9 KY1-9008
Svf Enterprise (cayman) Ltd 10 percent owner C/O WALKERS CORPORATE LIMITED 27 HOSPITAL ROAD GEORGE TOWN E9 KY1-9008
Sb Investment Advisers (uk) Ltd 10 percent owner 69 GROSVENOR STREET LONDON X0 W1K 3JP
Softbank Vision Fund (aiv M1) L.p. 10 percent owner 251 LITTLE FALLS DRIVE WILMINGTON DE 19808
Svf Endurance (cayman) Ltd 10 percent owner C/O WALKERS CORPORATE LIMITED 27 HOSPITAL ROAD GEORGE TOWN E9 KY1-9008
Clark Ian T director SOLAZYME, INC. 225 GATEWAY BLVD. SOUTH SAN FRANCISCO CA 94080
Eltoukhy Helmy director, officer: Chief Executive Officer 2 BARRY LANE ATHERTON CA 94027
Bertocci Derek A officer: Chief Financial Officer 3070 ORCHARD DRIVE SAN JOSE CA 95134
Saia John G. officer: See Remarks C/O ACELRX PHARMACEUTICALS, INC. 351 GALVESTON DRIVE REDWOOD CITY CA 94063
Gadde Vijaya director C/O TWITTER INC 1355 MARKET STREET SUITE 900 SAN FRANCISCO CA 94103
Jallal Bahija director 120 MONUMENT CIRCLE INDIANAPOLIS IN 46204
Nishar Dipchand director C/O LINKEDIN CORPORATION 2029 STIERLIN COURT MOUNTAIN VIEW CA 94043

Guardant Health Headlines

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