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Lifecore Biomedical (Lifecore Biomedical) Altman Z-Score : -0.38 (As of Apr. 26, 2024)


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What is Lifecore Biomedical 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 -0.38 is in distress zone. This implies bankruptcy possibility in the next two years.

Lifecore Biomedical has a Altman Z-Score of -0.38, 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 Lifecore Biomedical's Altman Z-Score or its related term are showing as below:

LFCR' s Altman Z-Score Range Over the Past 10 Years
Min: -0.38   Med: 2.59   Max: 4.11
Current: -0.38

During the past 13 years, Lifecore Biomedical's highest Altman Z-Score was 4.11. The lowest was -0.38. And the median was 2.59.


Lifecore Biomedical Altman Z-Score Historical Data

The historical data trend for Lifecore Biomedical'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.

Lifecore Biomedical Altman Z-Score Chart

Lifecore Biomedical Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.11 0.91 1.22 0.72 -0.29

Lifecore Biomedical Quarterly Data
Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23
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 0.72 1.20 0.22 0.12 -0.29

Competitive Comparison of Lifecore Biomedical's Altman Z-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Lifecore Biomedical'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.


Lifecore Biomedical's Altman Z-Score Distribution in the Drug Manufacturers Industry

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

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



Lifecore Biomedical 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.

Lifecore Biomedical'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*0.2153+1.4*-0.7042+3.3*-0.2005+0.6*0.788+1.0*0.5335
=-0.38

* 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 May. 2023:
Total Assets was $253.5 Mil.
Total Current Assets was $93.9 Mil.
Total Current Liabilities was $39.3 Mil.
Retained Earnings was $-178.5 Mil.
Pre-Tax Income was -29.293 + -15.391 + -12.445 + -11.347 = $-68.5 Mil.
Interest Expense was -3.934 + -5.818 + -4.219 + -3.678 = $-17.6 Mil.
Revenue was 25.521 + 27.6 + 38.802 + 43.355 = $135.3 Mil.
Market Cap (Today) was $203.1 Mil.
Total Liabilities was $257.8 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
=(93.875 - 39.289)/253.545
=0.2153

X2=Retained Earnings/Total Assets
=-178.536/253.545
=-0.7042

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-68.476 - -17.649)/253.545
=-0.2005

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=203.138/257.775
=0.788

X5=Revenue/Total Assets
=135.278/253.545
=0.5335

The zones of discrimination were as such:

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

Lifecore Biomedical has a Altman Z-Score of -0.38 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.


Lifecore Biomedical  (NAS:LFCR) 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.


Lifecore Biomedical Altman Z-Score Related Terms

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Lifecore Biomedical (Lifecore Biomedical) Business Description

Traded in Other Exchanges
N/A
Address
3515 Lyman Boulevard, Chaska, MN, USA, 55318
Lifecore Biomedical Inc is a fully integrated contract development and manufacturing organization (CDMO) that offers highly differentiated capabilities in the development, fill and finish of complex sterile injectable pharmaceutical products in syringes and vials. It manufactures injectable-grade Hyaluronic Acid.
Executives
Raymond T. White director 12121 WILSHIRE BLVD., SUITE 1240, LOS ANGELES CA 90025
Legion Partners, Llc director 12121 WILSHIRE BLVD., SUITE 1240, LOS ANGELES CA 90025
Legion Partners Holdings, Llc director 12121 WILSHIRE BLVD., SUITE 1240, LOS ANGELES CA 90025
Legion Partners, L.p. Ii director 12121 WILSHIRE BLVD., SUITE 1240, LOS ANGELES CA 90025
Legion Partners, L.p. I director 12121 WILSHIRE BLVD., SUITE 1240, LOS ANGELES CA 90025
Legion Partners Asset Management, Llc director 12121 WILSHIRE BLVD., SUITE 1240, LOS ANGELES CA 90025
Christopher S Kiper director 12121 WILSHIRE BLVD, SUITE 1240, LOS ANGELES CA 90025
Nathaniel Calloway director C/O ANEBULO PHARMACEUTICALS, INC., 1415 RANCH ROAD 620 SOUTH, SUITE 201, LAKEWAY TX 78734
Wynnefield Partners Small Cap Value Lp I 10 percent owner 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Raymond H Diradoorian director C/O LANDEC CORPORATION, 2811 AIRPARK DRIVE, SANTA MARIA CA 93455
Joshua Schechter director C/O THE PANTRY, INC., 305 GREGSON DRIVE, CARY NC 27511
Patrick D Walsh director 14282 FRANKLIN AVE., TUSTIN CA 92780
John D Morberg officer: Chief Financial Officer C/O LANDEC CORPORATION, 2811 AIRPARK DRIVE, SANTA MARIA CA 93455
Albert D. Bolles director CONAGRA FOODS, INC., ONE CONAGRA DRIVE, MS 1-330, OMAHA NE 68102
James G Hall officer: Executive Vice President 3515 LYMAN BLVD., CHASKA MN 55318