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Acceleron Pharma (Acceleron Pharma) Altman Z-Score : 92.25 (As of Apr. 26, 2024)


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What is Acceleron 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.

Good Sign:

Altman Z-score of 92.25 is strong.

Acceleron Pharma has a Altman Z-Score of 92.25, 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 Acceleron Pharma's Altman Z-Score or its related term are showing as below:

XLRN' s Altman Z-Score Range Over the Past 10 Years
Min: -9.93   Med: 24.32   Max: 92.25
Current: 92.25

During the past 10 years, Acceleron Pharma's highest Altman Z-Score was 92.25. The lowest was -9.93. And the median was 24.32.


Acceleron Pharma Altman Z-Score Historical Data

The historical data trend for Acceleron 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.

Acceleron Pharma Altman Z-Score Chart

Acceleron Pharma Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.49 46.34 50.34 28.84 59.29

Acceleron Pharma Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 76.59 59.29 74.85 61.17 88.71

Competitive Comparison of Acceleron Pharma's Altman Z-Score

For the Biotechnology subindustry, Acceleron 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.


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

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

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



Acceleron 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.

Acceleron 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*0.8114+1.4*-1.3643+3.3*-0.3235+0.6*156.8492+1.0*0.1431
=92.25

* 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 Sep. 2021:
Total Assets was $787.8 Mil.
Total Current Assets was $696.6 Mil.
Total Current Liabilities was $57.4 Mil.
Retained Earnings was $-1,074.9 Mil.
Pre-Tax Income was -70.45 + -63.513 + -63.466 + -57.405 = $-254.8 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.0 Mil.
Revenue was 34.199 + 27.94 + 24.758 + 25.867 = $112.8 Mil.
Market Cap (Today) was $10,931.6 Mil.
Total Liabilities was $69.7 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
=(696.608 - 57.371)/787.848
=0.8114

X2=Retained Earnings/Total Assets
=-1074.894/787.848
=-1.3643

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-254.834 - 0)/787.848
=-0.3235

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=10931.604/69.695
=156.8492

X5=Revenue/Total Assets
=112.764/787.848
=0.1431

The zones of discrimination were as such:

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

Acceleron Pharma has a Altman Z-Score of 92.25 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.


Acceleron Pharma  (NAS:XLRN) 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.


Acceleron Pharma Altman Z-Score Related Terms

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Acceleron Pharma (Acceleron Pharma) Business Description

Traded in Other Exchanges
N/A
Address
128 Sidney Street, Cambridge, MA, USA, 02139
Acceleron Pharma is a biotechnology company focused on the discovery, development, and commercialization of novel therapies. The company's research focuses on key natural regulators of cellular growth and repair. Acceleron generates its revenue through collaboration, licensing, and research arrangements with collaboration partners for the development and commercialization of therapeutic candidates. The company sometimes uses contract research organizations and research institutions outside the United States.
Executives
Sujay Kango officer: EVP, Chief Commercial Officer 1028 CHAMBERS COURT, BRIDGEWATER NJ 08807
Kevin F Mclaughlin officer: SVP, CFO and Treasurer C/O ACCELERON PHARMA INC., 128 SIDNEY STREET, CAMBRIDGE MA 02139
Adam M Veness officer: SVP, General Counsel and Sec. C/O DIANTHUS THERAPEUTICS, INC., 7 TIMES SQUARE, 43RD FLOOR, NEW YORK NY 10036
Thomas A Mccourt director C/O IRONWOOD PHARMACEUTICALS, INC., 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Karen L. Smith director C/O JAZZ PHARMACEUTICALS PLC, 5TH FL, WATERLOO EXCHANGE, WATERLOO RD, DUBLIN L2 4 L2
Joseph S Zakrzewski director 509 WATERVIEW PLACE, NEW HOPE PA 18938
Habib J Dable director, officer: CEO and President C/O ACCELERON PHARMA INC., 128 SIDNEY STREET, CAMBRIDGE MA 02139
Terrence C Kearney director IN CARE OF HOSPIRA, INC., 275 NORTH FIELD DRIVE, LAKE FOREST IL 60045
Laura Hamill director 333 LAKESIDE DRIVE, FOSTER CITY CA 94404
Bristol Myers Squibb Co 10 percent owner 430 E. 29TH STREET 14 FLOOR NEW YORK NY 10016
Celgene Corp /de/ 10 percent owner 86 MORRIS AVENUE, SUMMIT NJ 07901
Christopher Hite director C/O ACCELERON PHARMA INC., 128 SIDNEY STREET, CAMBRIDGE MA 02139
Francois Nader director 550 HILLS DRIVE, BEDMINSTER NJ 07921
Jean George director CRITICAL THERAPEUTICS INC, 60 WESTVIEW STREET, LEXINGTON MA 02421
Kemal Malik director C/O ACCELERON PHARMA INC. 128 SIDNEY STREET CAMBRIDGE MA 02139

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