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MEI Pharma (MEI Pharma) Altman Z-Score : -3.10 (As of Apr. 25, 2024)


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What is MEI Pharma 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 -3.1 is in distress zone. This implies bankruptcy possibility in the next two years.

MEI Pharma has a Altman Z-Score of -3.10, 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 MEI Pharma's Altman Z-Score or its related term are showing as below:

MEIP' s Altman Z-Score Range Over the Past 10 Years
Min: -4.03   Med: 0.01   Max: 29.46
Current: -3.1

During the past 13 years, MEI Pharma's highest Altman Z-Score was 29.46. The lowest was -4.03. And the median was 0.01.


MEI Pharma Altman Z-Score Historical Data

The historical data trend for MEI Pharma'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.

MEI Pharma Altman Z-Score Chart

MEI Pharma Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.37 0.73 -0.61 -2.38 -4.03

MEI Pharma 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 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 -2.79 -3.58 -4.03 -0.10 -2.57

Competitive Comparison of MEI Pharma's Altman Z-Score

For the Biotechnology subindustry, MEI Pharma'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.


MEI Pharma's Altman Z-Score Distribution in the Biotechnology Industry

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

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



MEI Pharma 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.

MEI Pharma'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*0.7402+1.4*-4.5925+3.3*0.2527+0.6*1.1402+1.0*0.925
=-3.10

* 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 $78.54 Mil.
Total Current Assets was $66.17 Mil.
Total Current Liabilities was $8.04 Mil.
Retained Earnings was $-360.69 Mil.
Pre-Tax Income was -11.063 + 56.374 + -10.029 + -15.438 = $19.84 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 0 + 65.297 + 1.457 + 5.894 = $72.65 Mil.
Market Cap (Today) was $21.72 Mil.
Total Liabilities was $19.05 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
=(66.172 - 8.038)/78.538
=0.7402

X2=Retained Earnings/Total Assets
=-360.686/78.538
=-4.5925

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(19.844 - 0)/78.538
=0.2527

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=21.721/19.05
=1.1402

X5=Revenue/Total Assets
=72.648/78.538
=0.925

The zones of discrimination were as such:

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

MEI Pharma has a Altman Z-Score of -3.10 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.


MEI Pharma  (NAS:MEIP) 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.


MEI Pharma Altman Z-Score Related Terms

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MEI Pharma (MEI Pharma) Business Description

Traded in Other Exchanges
N/A
Address
11455 El Camino Real, Suite 250, San Diego, CA, USA, 92130
MEI Pharma Inc is focused on the clinical development of novel therapies for cancer. The company's clinical drug candidate includes Pracinostat, an orally available histone deacetylase inhibitor for the treatment of patients with acute myeloid leukemia and myelodysplastic syndrome. Its clinical development portfolio also includes Zandelisib, an oral inhibitor of phosphatidylinositide 3-kinase delta for the treatment of patients with recurrent chronic lymphocytic leukemia or follicular non-Hodgkin's lymphoma; and ME-344, an isoflavone-based mitochondrial inhibitor for the treatment of HER2-negative breast cancer and Pracinostat, an oral histone deacetylase inhibitor. Geographically, all the business activities function through the region of the United States.
Executives
Taheer Datoo director 181 BAY STREET, SUITE 4200, TORONTO A6 M5J 2T3
James P Flynn director 41 HARRIS CT, DANVILLE CA 94526
Sujay Kango director 1028 CHAMBERS COURT, BRIDGEWATER NJ 08807
Richard G Ghalie officer: Chief Medical Officer C/O FAVRILLE, INC, 10445 PACIFIC CENTER COURT, SAN DIEGO CA 92121
Bruce Ross Winson 10 percent owner 5950 BERKSHIRE LANE, SUITE 510, DALLAS TX 75225
Anson Funds Management Lp 10 percent owner 16000 DALLAS PARKWAY, SUITE 800, DALLAS TX 75248
Anson Management Gp Llc 10 percent owner 16000 DALLAS PARKWAY, SUITE 800, DALLAS TX 75248
Anson Advisors Inc. 10 percent owner 155 UNIVERSITY AVENUE, SUITE 207, TORONTO A6 M5H 3B7
Funicular Funds, Lp 10 percent owner 2261 MARKET STREET, #4307, SAN FRANCISCO CA 94114
Amin Nathoo 10 percent owner 155 UNIVERSITY AVENUE, SUITE 207, TORONTO Z4 M5H 3B7
Moez Kassam 10 percent owner 111 PETER STREET, SUITE 904, TORONTO A6 M5V2H1
Justin J. File officer: CFO and Corporate Secretary C/O EVOFEM BIOSCIENCES, INC., 12400 HIGH BLUFF DRIVE, SUITE 600, SAN DIEGO CA 92130
Jacob Ma-weaver 10 percent owner 2261 MARKET STREET, #4307, SAN FRANCISCO CA 94114
Cable Car Capital Llc 10 percent owner 2261 MARKET STREET #4307, SAN FRANCISCO CA 94114
Baltic Charles V. Iii director C/O MARSHALL EDWARDS, INC., 11975 EL CAMINO REAL, SUITE 101, SAN DIEGO CA 92130