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Bausch Health Altman Z-Score

: 0.08 (As of Today)
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Warning Sign:

Altman Z-score of 0.07 is in distress zone. This implies bankruptcy possibility in the next two years.

Bausch Health has a Altman Z-Score of 0.08, 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 Bausch Health's Altman Z-Score or its related term are showing as below:

BHC' s Altman Z-Score Range Over the Past 10 Years
Min: -0.09   Med: 2.12   Max: 37.37
Current: 0.07

During the past 13 years, Bausch Health's highest Altman Z-Score was 37.37. The lowest was -0.09. And the median was 2.12.


Bausch Health Altman Z-Score Historical Data

The historical data trend for Bausch Health'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.

Bausch Health Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.30 -0.09 0.14 0.14 0.12

Bausch Health Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 0.06 0.06 0.12 0.17 0.09

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Bausch Health'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.

   

Bausch Health Altman Z-Score Distribution

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

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



Bausch Health 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.

Bausch Health'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*0.0149+1.4*-0.3257+3.3*0.053+0.6*0.0816+1.0*0.2908
=0.08

* 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 Jun. 2022:
Total Assets was $28,171 Mil.
Total Current Assets was $5,417 Mil.
Total Current Liabilities was $4,997 Mil.
Retained Earnings was $-9,175 Mil.
Pre-Tax Income was -129 + -82 + 21 + 216 = $26 Mil.
Interest Expense was -410 + -362 + -343 + -351 = $-1,466 Mil.
Revenue was 1967 + 1918 + 2196 + 2111 = $8,192 Mil.
Market Cap (Today) was $2,277 Mil.
Total Liabilities was $27,918 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
=(5417 - 4997)/28171
=0.0149

X2=Retained Earnings/Total Assets
=-9175/28171
=-0.3257

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(26 - -1466)/28171
=0.053

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=2276.787/27918
=0.0816

X5=Revenue/Total Assets
=8192/28171
=0.2908

The zones of discrimination were as such:

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

Bausch Health has a Altman Z-Score of 0.08 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.


Bausch Health  (NYSE:BHC) 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.


Bausch Health Altman Z-Score Related Terms

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


Bausch Health Business Description

Bausch Health logo
Address
2150 Saint Elzear Boulvard West, Laval, QC, CAN, H7L 4A8
Bausch Health Companies Inc develop, manufacture and market, primarily in the therapeutic areas of eye-health, gastroenterology and dermatology, a broad range of branded pharmaceuticals, generic and branded generic pharmaceuticals, over-the-counter products and medical devices, which are marketed directly or indirectly in approximately 100 countries. The company's business segments are Bausch + Lomb, Salix, International Rx, Ortho Dermatologics and Diversified Products with maximum revenue from Bausch + Lomb segment.
Executives
Carson Seana officer: EVP, General Counsel 400 SOMERSET CORPORATE BLVD BRIDGEWATER NJ 08807
Vadaketh Tom George officer: EVP, Chief Financial Officer 1727 JOCKEYS WAY YARDLEY PA 19067
Mulligan Richard director C/O ICAHN CAPITAL LP 767 FIFTH AVENUE, SUITE 4700 NEW YORK NY 10153
Munsch Frederick officer: SVP, Controller and CAO 400 SOMERSET CORPORATE BLVD. BRIDGEWATER NJ 08807
Gordon Joseph F officer: Pres&Co-Head Bausch&Lomb/Int'l 400 SOMERSET CORPORATE BLVD. BRIDGEWATER NJ 08807
Ackermann Christina officer: EVP AND GENERAL COUNSEL C/O BLCO 400 SOMERSET CORPORATE BLVD. BRIDGEWATER NJ 08807
Spurr Robert director, officer: U.S. President-Pharma Business C/O BAUSCH HEALTH COMPANIES INC. 400 SOMERSET CORPORATE BLVD. BRIDGEWATER NJ 08807
Eldessouky Sam officer: EVP & Chief Financial Officer C/O BAUSCH HEALTH COMPANIES INC. 400 SOMERSET CORPORATE BLVD. BRIDGEWATER NJ 08807
Miller Steven D director 16690 COLLINS AVENUE PH SUNNY ISLE BEACH FL 33160
Icahn Brett director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Paulson John director 1133 AVENUE OF THE AMERICAS 33RD FLOOR NEW YORK NY 10036
Valueact Holdings Ii, L.p. director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, FOURTH FLOOR SAN FRANCISCO CA 94129
Von Eschenbach Andrew C. director BAUSCH HEALTH COMPANIES INC. 400 SOMERSET CORPORATE BLVD. BRIDGEWATER NJ 08807
Mckenna Mark C. officer: President, Salix 400 SOMERSET CORPORATE BOULEVARD BRIDGEWATER NJ 08807
Humphries William D. officer: EVP, COMPANY GROUP CHAIRMAN C/O STRATA SKIN SCIENCES, INC. 5 WALNUT GROVE DRIVE SUITE 140 HORSHAM PA 19044

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