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INSM (Insmed) Altman Z-Score : 2.72 (As of Jul. 16, 2025)


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What is Insmed 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.

Warning Sign:

Altman Z-score of 2.58 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Insmed has a Altman Z-Score of 2.72, indicating it is in Grey Zones. This implies that Insmed 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 Insmed's Altman Z-Score or its related term are showing as below:

INSM' s Altman Z-Score Range Over the Past 10 Years
Min: -4.14   Med: 0.22   Max: 15.16
Current: 2.58

During the past 13 years, Insmed's highest Altman Z-Score was 15.16. The lowest was -4.14. And the median was 0.22.


Insmed Altman Z-Score Historical Data

The historical data trend for Insmed'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.

Insmed Altman Z-Score Chart

Insmed Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.60 -0.45 -1.22 -2.77 0.87

Insmed Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 -4.14 0.22 1.90 0.87 0.59

Competitive Comparison of Insmed's Altman Z-Score

For the Biotechnology subindustry, Insmed'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.


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

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

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


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Insmed 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.

Insmed'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*0.6454+1.4*-2.5608+3.3*-0.5154+0.6*11.6953+1.0*0.2114
=2.72

* 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. 2025:
Total Assets was $1,802.7 Mil.
Total Current Assets was $1,402.7 Mil.
Total Current Liabilities was $239.2 Mil.
Retained Earnings was $-4,616.5 Mil.
Pre-Tax Income was -255.671 + -234.282 + -219.51 + -299.771 = $-1,009.2 Mil.
Interest Expense was -19.747 + -19.802 + -20.334 + -20.177 = $-80.1 Mil.
Revenue was 92.823 + 104.442 + 93.425 + 90.34 = $381.0 Mil.
Market Cap (Today) was $19,923.9 Mil.
Total Liabilities was $1,703.6 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
=(1402.692 - 239.233)/1802.735
=0.6454

X2=Retained Earnings/Total Assets
=-4616.5/1802.735
=-2.5608

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-1009.234 - -80.06)/1802.735
=-0.5154

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=19923.875/1703.576
=11.6953

X5=Revenue/Total Assets
=381.03/1802.735
=0.2114

The zones of discrimination were as such:

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

Insmed has a Altman Z-Score of 2.72 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.


Insmed  (NAS:INSM) 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.


Insmed Altman Z-Score Related Terms

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


Insmed Business Description

Traded in Other Exchanges
Address
700 US Highway 202/206, Bridgewater, NJ, USA, 08807
Insmed Inc is a biopharmaceutical company transforming the lives of patients with serious and rare diseases. The company's first commercial product is ARIKAYCE (amikacin liposome inhalation suspension), approved in the US for the treatment of Mycobacterium Avium Complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. It is also developing Brensocatib, an oral reversible dipeptidyl peptidase 1 inhibitor for bronchiectasis and other neutrophil-mediated diseases, and Treprostinil Palmitil Inhalation Powder, an inhaled treprostinil prodrug for pulmonary hypertension linked to interstitial lung disease and pulmonary arterial hypertension.
Executives
Clarissa Desjardins director 700 US HIGHWAY 202/206, BRIDGEWATER NJ 08807
William Lewis officer: President & CEO 10 FINDERNE AVENUE, BUILDING 10, BRIDGEWATER NJ 08807
Flammer Martina M.d. officer: Chief Medical Officer 700 US HIGHWAY 202/206, BRIDGEWATER NJ 08807
Michael Alexander Smith officer: General Counsel, Senior VP 700 US HIGHWAY 202/206, BRIDGEWATER NJ 08807
Roger Adsett officer: Chief Commercial Officer 10 FINDERNE AVENUE, BRIDGEWATER NJ 08807
Sara Bonstein officer: Chief Financial Officer 305 COLLEGE ROAD EAST, PRINCETON NJ 08540
Schaeffer Orlov S Nicole officer: Chief People Strategy Officer INSMED INCORPORATED, 10 FINDERNE AVENUE, BRIDGEWATER NJ 08807
John Drayton Wise officer: Chief Commercial Officer 700 US HIGHWAY 202/206, BRIDGEWATER NJ 08807
Melvin Md Sharoky director 10 FINDERNE AVENUE, BUILDING 10, BRIDGEWATER NJ 08807
Leo Lee director 10 FINDERNE AVENUE, BRIDGEWATER NJ 08807
David R Brennan director C/O INSMED INCORPORATED, 10 FINDERNE AVENUE, BRIDGEWATER NJ 08807
Steinar J Engelsen director 10 FINDERNE AVENUE, BUILDING 10, BRIDGEWATER NJ 08807
John Soriano officer: Chief Compliance Officer 10 FINDERNE AVENUE, BRIDGEWATER NJ 08807
Christine A Pellizzari officer: General Counsel & Secretary 10 FINDERNE AVENUE, BRIDGEWATER NJ 08807
Alfred Altomari director C/O AGILE THERAPEUTICS, INC., 101 POOR FARM ROAD, PRINCETON NJ 08540