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Melinta Therapeutics Altman Z-Score

: -9.84 (As of Today)
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Melinta Therapeutics has a Altman Z-Score of -9.84, 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 Melinta Therapeutics's Altman Z-Score or its related term are showing as below:


Melinta Therapeutics Altman Z-Score Historical Data

The historical data trend for Melinta 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.

Melinta Therapeutics Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.18 15.25 -52.84 -2.59 -2.77

Melinta Therapeutics Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 -1.86 -2.77 -2.60 -2.76 -9.73

Competitive Comparison

For the Biotechnology subindustry, Melinta 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.

   

Melinta Therapeutics Altman Z-Score Distribution

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

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



Melinta 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.

Melinta 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*0.0141+1.4*-4.3673+3.3*-1.2425+0.6*0.0052+1.0*0.3562
=-9.84

* 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. 2019:
Total Assets was $228.49 Mil.
Total Current Assets was $131.27 Mil.
Total Current Liabilities was $128.05 Mil.
Retained Earnings was $-997.88 Mil.
Pre-Tax Income was -213.382 + -36.18 + -26.532 + -44.12 = $-320.21 Mil.
Interest Expense was -8.256 + -9.541 + -7.667 + -10.847 = $-36.31 Mil.
Revenue was 15.87 + 15.955 + 14.084 + 35.489 = $81.40 Mil.
Market Cap (Today) was $1.51 Mil.
Total Liabilities was $289.02 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
=(131.267 - 128.047)/228.491
=0.0141

X2=Retained Earnings/Total Assets
=-997.879/228.491
=-4.3673

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-320.214 - -36.311)/228.491
=-1.2425

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1.510/289.022
=0.0052

X5=Revenue/Total Assets
=81.398/228.491
=0.3562

The zones of discrimination were as such:

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

Melinta Therapeutics has a Altman Z-Score of -9.84 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.


Melinta Therapeutics  (OTCPK:MLNTQ) 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.


Melinta Therapeutics Altman Z-Score Related Terms

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Melinta Therapeutics Business Description

Melinta Therapeutics logo
Traded in Other Exchanges
N/A
Address
44 Whippany Road, Morristown, NJ, USA, 07963
Melinta Therapeutics Inc is a clinical-stage biotechnology company that develops differentiated antibiotics for acute care and community settings. The company's goal is to develop treatments for bacterial infectious diseases, particularly respiratory tract infections and staphylococcal infections. The company is particularly focused on treating community-acquired bacterial pneumonia, as well as gonorrhea and other indications.
Executives
Johnson John director, officer: Chief Executive Officer DENDREON CORPORATION 1301 2ND AVENUE SEATTLE WA 98101
Koestler Thomas P director 2000 GALLOPING HILL ROAD KENILWORTH NJ 07033
Zaccardelli David director 300 TRI STATE INTERNATIONAL SUITE 272 LINCOLNSHIRE IL 60069
Gill David N director C/O NXSTAGE MEDICAL INC. (NXTM) 439 SOUTH UNION STREET, 5TH FLOOR LAWRENCE MA 01843
Downey Bruce director
Kong Garheng director 712 COLLEGE AVENUE MENLO PARK CA 94025
Wechsler Daniel Mark director, officer: See Remarks 2150 ST. ELZEAR BLVD. WEST LAVAL A8 H7L 4A8
Temperato John officer: Chief Commercial Officer C/O MELINTA THERAPEUTICS,INC. 300 GEORGE STREET, SUITE 301 NEW HAVEN CT 06511
Goldstein Dov A Md director
Dougherty Michael R director C/O ADOLOR CORP 700 PENNSYLVANIA DR EXTON PA 19341
Neff P Sherrill director C/O RESOURCE AMERICA, INC. 1845 WALNUT STREET, 18TH FLOOR PHILADELPHIA PA 19103
Fernandes Prabhavathi director, officer: President and CEO 114 MILTON AVENUE CHAPEL HILL NC 27514
Intersouth Partners Vii L P 10 percent owner 406 BLACKWELL SUITE 200 DURHAM NC 27701
Intersouth Associates Vii, Llc 10 percent owner 406 BLACKWELL STREET SUITE 200 DURHAM NC 27701
Intersouth Associates Vi, Llc 10 percent owner 406 BLACKWELL STREET SUITE 200 DURHAM NC 27701
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