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Kezar Life Sciences (Kezar Life Sciences) Altman Z-Score

: -1.60 (As of Today)
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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 -1.64 is in distress zone. This implies bankruptcy possibility in the next two years.

Kezar Life Sciences has a Altman Z-Score of -1.60, 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 Kezar Life Sciences's Altman Z-Score or its related term are showing as below:

KZR' s Altman Z-Score Range Over the Past 10 Years
Min: -1.64   Med: -0.07   Max: 45.84
Current: -1.64

During the past 8 years, Kezar Life Sciences's highest Altman Z-Score was 45.84. The lowest was -1.64. And the median was -0.07.


Kezar Life Sciences Altman Z-Score Historical Data

The historical data trend for Kezar Life Sciences'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.

Kezar Life Sciences Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only - - - - -1.43

Kezar Life Sciences Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 - - - -0.32 -1.43

Competitive Comparison

For the Biotechnology subindustry, Kezar Life Sciences'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.


Kezar Life Sciences Altman Z-Score Distribution

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

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



Kezar Life Sciences 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.

Kezar Life Sciences'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*0.8552+1.4*-1.5855+3.3*-0.4535+0.6*1.7659+1.0*0.0316
=-1.60

* 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 Dec. 2023:
Total Assets was $221.24 Mil.
Total Current Assets was $206.95 Mil.
Total Current Liabilities was $17.74 Mil.
Retained Earnings was $-350.76 Mil.
Pre-Tax Income was -32.26 + -23.103 + -24.308 + -22.199 = $-101.87 Mil.
Interest Expense was -0.399 + -0.396 + -0.385 + -0.37 = $-1.55 Mil.
Revenue was 0 + 7 + 0 + 0 = $7.00 Mil.
Market Cap (Today) was $59.45 Mil.
Total Liabilities was $33.67 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
=(206.95 - 17.744)/221.235
=0.8552

X2=Retained Earnings/Total Assets
=-350.763/221.235
=-1.5855

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-101.87 - -1.55)/221.235
=-0.4535

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=59.450/33.665
=1.7659

X5=Revenue/Total Assets
=7/221.235
=0.0316

The zones of discrimination were as such:

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

Kezar Life Sciences has a Altman Z-Score of -1.60 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.


Kezar Life Sciences  (NAS:KZR) 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.


Kezar Life Sciences Altman Z-Score Related Terms

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Kezar Life Sciences (Kezar Life Sciences) Business Description

Traded in Other Exchanges
Address
4000 Shoreline Court, Suite 300, South San Francisco, CA, USA, 94080
Kezar Life Sciences Inc is a clinical-stage biotechnology company. It is engaged in discovering and developing novel small molecule therapeutics to treat unmet needs in autoimmunity and cancer. The pipeline consist of product candidates such as KZR-616, and the protein secretion program.
Executives
Morningside Venture Investments Ltd 10 percent owner MCCARTHY LEGAL SERVICES, 1188 CENTRE STREET, NEWTON CENTRE MA 02459
Nicholas Michael Mordwinkin officer: Chief Business Officer C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
Franklin M Berger director 1000 MARINA BLVD, STE 200, BRISBANE CA 94005
Wallace Courtney director C/O BEAM THERAPEUTICS INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Micki Klearman director C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
Equal Talent Investments Ltd 10 percent owner THC MANAGEMENT SERVICES S.A.M. 2ND FLOOR, LE PRINCE DE GALLES 3-5 AVE DE CITRONNIE, MONTE CARLO O9 98000
Noreen Henig officer: Chief Medical Officer C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
John Franklin Fowler director, officer: CEO C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
Christopher J. Kirk director, officer: President and CSO C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
Marc Belsky officer: Chief Financial Officer C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
Vassiliki Economides officer: SVP, Strategy & External Aff. C/O KEZAR LIFE SCIENCES, INC., 4000 SHORELINE COURT, SUITE 300, SOUTH SAN FRANCISCO CA 94080
Elizabeth Garner director 101 POOR FARM ROAD 3RD FLOOR, PRINCETON NJ 08540
Cormorant Asset Management, Lp 10 percent owner 200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Cormorant Global Healthcare Gp, Llc 10 percent owner 100 HIGH STREET, SUITE 1105, BOSTON DC 02110
Bay City Capital Llc 10 percent owner 750 BATTERY STREET STE 400, SAN FRANCISCO CA 94111