GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Twist Bioscience Corp (NAS:TWST) » Definitions » Altman Z-Score

Twist Bioscience (Twist Bioscience) Altman Z-Score

: 4.76 (As of Today)
View and export this data going back to 2018. Start your Free Trial

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.

Good Sign:

Altman Z-score of 4.86 is strong.

Twist Bioscience has a Altman Z-Score of 4.76, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

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 Twist Bioscience's Altman Z-Score or its related term are showing as below:

TWST' s Altman Z-Score Range Over the Past 10 Years
Min: -3.52   Med: 10.36   Max: 66.52
Current: 4.86

During the past 8 years, Twist Bioscience's highest Altman Z-Score was 66.52. The lowest was -3.52. And the median was 10.36.


Twist Bioscience Altman Z-Score Historical Data

The historical data trend for Twist Bioscience'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.

Twist Bioscience Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only 10.36 31.18 25.27 5.80 2.70

Twist Bioscience 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 3.67 1.96 2.90 2.70 6.86

Competitive Comparison

For the Diagnostics & Research subindustry, Twist Bioscience'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.


Twist Bioscience Altman Z-Score Distribution

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

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



Twist Bioscience 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.

Twist Bioscience'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*0.4435+1.4*-1.4686+3.3*-0.2792+0.6*11.416+1.0*0.358
=4.76

* 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 $732.8 Mil.
Total Current Assets was $390.2 Mil.
Total Current Liabilities was $65.2 Mil.
Retained Earnings was $-1,076.2 Mil.
Pre-Tax Income was -42.888 + -46.465 + -56.773 + -58.48 = $-204.6 Mil.
Interest Expense was 0 + -0.001 + -0.001 + -0.002 = $-0.0 Mil.
Revenue was 71.498 + 66.946 + 63.74 + 60.18 = $262.4 Mil.
Market Cap (Today) was $1,629.9 Mil.
Total Liabilities was $142.8 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
=(390.231 - 65.228)/732.815
=0.4435

X2=Retained Earnings/Total Assets
=-1076.19/732.815
=-1.4686

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-204.606 - -0.004)/732.815
=-0.2792

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1629.893/142.773
=11.416

X5=Revenue/Total Assets
=262.364/732.815
=0.358

The zones of discrimination were as such:

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

Twist Bioscience has a Altman Z-Score of 4.76 indicating it is in Safe Zones.

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


Twist Bioscience  (NAS:TWST) 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.


Twist Bioscience Altman Z-Score Related Terms

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


Twist Bioscience (Twist Bioscience) Business Description

Traded in Other Exchanges
Address
681 Gateway Boulevard, South San Francisco, CA, USA, 94080
Twist Bioscience Corp is a synthetic biology company. It develops a disruptive DNA synthesis platform to industrialize the engineering of biology. The company's DNA synthesis platform utilizes a proprietary semiconductor-based synthetic DNA manufacturing process that synthesizes DNA on silicon instead of on traditional well-plastic plates to enable the production of high-quality synthetic DNA faster and affordable as well as overcomes inefficiencies and powers cost-effective, rapid high-throughput synthesis, enabling researchers to rapidly realize opportunities ahead. Geographically, it derives a majority of its revenue from the United States.
Executives
Robert F. Werner officer: Chief Accounting Officer 2500 FABER PLACE, PALO ALTO CA 94303
Dennis Cho officer: See Remarks C/O TWIST BIOSCIENCE CORPORATION, 681 GATEWAY BLVD., SOUTH SAN FRANCISCO CA 94080
Melissa A. Starovasnik director C/O TWIST BIOSCIENCE CORPORATION, 681 GATEWAY BLVD., SOUTH SAN FRANCISCO CA 94080
Jan Johannessen director 5555 NE MOORE CT., HILLSBORO OR 97124
William Banyai director, officer: Chief Operating Officer C/O TWIST BIOSCIENCE CORPORATION, 455 MISSION BAY BOULEVARD SOUTH, SAN FRANCISCO CA 94158
Paula Green officer: VP of Human Resources C/O TWIST BIOSCIENCE CORPORATION, 455 MISSION BAY BOULEVARD SOUTH, SAN FRANCISCO CA 94158
James M Thorburn officer: Chief Financial Officer C/O ZILOG INC, 532 RACE STREET, SAN JOSE CA 95126
Nicolas Barthelemy director 1750 BELLA LAGUNA CT, ENCINITAS CA 92024
Robert Chess director
Patrick John Finn officer: VP of Sales and Marketing C/O TWIST BIOSCIENCE CORPORATION, 455 MISSION BAY BOULEVARD SOUTH, SAN FRANCISCO CA 94158
Emily M. Leproust director, officer: President & CEO C/O TWIST BIOSCIENCE CORPORATION, 455 MISSION BAY BOULEVARD SOUTH, SAN FRANCISCO CA 94158
Patrick Weiss officer: VP of Operations C/O TWIST BIOSCIENCE CORPORATION, 455 MISSION BAY BOULEVARD SOUTH, SAN FRANCISCO CA 94158
Keith Crandell director 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Kevin Bruce Yankton officer: Chief Accounting Officer 1678 S. PIONEER ROAD, SALT LAKE CITY UT 84104
Mark Daniels officer: Chief Compliance Officer & GC C/O TWIST BIOSCIENCE CORPORATION, 455 MISSION BAY BOULEVARD SOUTH, SAN FRANCISCO CA 94158