GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » ARYx Therapeutics Inc (OTCPK:ARYX) » Definitions » Altman Z-Score

ARYx Therapeutics (ARYx Therapeutics) Altman Z-Score : N/A (As of Apr. 25, 2024)


View and export this data going back to 2007. Start your Free Trial

What is ARYx Therapeutics 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.

ARYx Therapeutics has a Altman Z-Score of N/A, 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 ARYx Therapeutics's Altman Z-Score or its related term are showing as below:


ARYx Therapeutics Altman Z-Score Historical Data

The historical data trend for ARYx Therapeutics'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.

ARYx Therapeutics Altman Z-Score Chart

ARYx Therapeutics Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
Altman Z-Score
Get a 7-Day Free Trial - - - - -

ARYx Therapeutics Quarterly Data
Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10
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 - - - - -

Competitive Comparison of ARYx Therapeutics's Altman Z-Score

For the Drug Manufacturers - Specialty & Generic subindustry, ARYx Therapeutics'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.


ARYx Therapeutics's Altman Z-Score Distribution in the Drug Manufacturers Industry

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

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



ARYx Therapeutics 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.

ARYx Therapeutics'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*-0.6877+1.4*-33.431+3.3*0.283+0.6*0+1.0*0
=N/A

* 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. 2010:
Total Assets was $5.97 Mil.
Total Current Assets was $3.68 Mil.
Total Current Liabilities was $7.79 Mil.
Retained Earnings was $-199.65 Mil.
Pre-Tax Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Interest Expense was -0.375 + -0.389 + -0.434 + -0.492 = $-1.69 Mil.
Revenue was 0 + 0 + 0 + 0 = $0.00 Mil.
Market Cap (Today) was $0.00 Mil.
Total Liabilities was $13.71 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
=(3.682 - 7.789)/5.972
=-0.6877

X2=Retained Earnings/Total Assets
=-199.65/5.972
=-33.431

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(0 - -1.69)/5.972
=0.283

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=0.000/13.707
=0

X5=Revenue/Total Assets
=0/5.972
=0

The zones of discrimination were as such:

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

ARYx Therapeutics has a Altman Z-Score of N/A 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.


ARYx Therapeutics  (OTCPK:ARYX) 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.


ARYx Therapeutics Altman Z-Score Related Terms

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


ARYx Therapeutics (ARYx Therapeutics) Business Description

Traded in Other Exchanges
N/A
Address
6300 Dumbarton Circle, Fremont, CA, USA, 94555
ARYx Therapeutics Inc is a biopharmaceutical company focused on developing a portfolio of internally discovered product candidates designed to eliminate known safety issues associated with well-established, commercially successful drugs.
Executives
Newhall Charles W Iii 10 percent owner 1119 ST PAUL ST, BALTIMORE MD 21202
C Richard Kramlich 10 percent owner 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Ryan D Drant 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202
Krishna Kittu Kolluri 10 percent owner
New Enterprise Associates 12, Limited Partnership 10 percent owner 1119 ST. PAUL STREET, BALTIMORE MD 21202
Nea Partners 12, Limited Partnership 10 percent owner 1119 ST. PAUL STREET, BALTIMORE MD 21202
Nea 12 Gp, Llc 10 percent owner 1119 ST. PAUL STREET, BALTIMORE MD 21202
Mark W Perry 10 percent owner
Patrick J Kerins 10 percent owner
Forest Baskett 10 percent owner
Growth Equity Opportunities Fund, Llc 10 percent owner 1119 ST. PAUL STREET, BALTIMORE MD 21202
Peter J Barris 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202
M James Barrett 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202
Scott D Sandell 10 percent owner
Nicholas Galakatos 10 percent owner THE JOHN HANCOCK TOWER, 200 CLARENDON STREET, 54TH FLOOR, BOSTON MA 02116

ARYx Therapeutics (ARYx Therapeutics) Headlines

No Headlines