Alterity Therapeutics Limited - Sponsored ADR
ATHE Healthcare Biotechnology
Revenue growth for five consecutive years; insiders bought in the last twelve months.
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Alterity Therapeutics Limited - Sponsored ADR (ATHE) Altman Z-score
Alterity Therapeutics Limited - Sponsored ADR's Altman Z-score for fiscal 2021 is 2.15, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2021 | 2.15 | 21.71 |
| FY2020 | −19.56 | (12.19) |
| FY2019 | −7.37 | (2.44) |
| FY2018 | −4.93 | (8.71) |
| FY2017 | 3.78 | (6.21) |
| FY2016 | 9.99 | 10.87 |
| FY2015 | −0.88 | — |
How fiscal 2021’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.91 | — | 1.09 | |
| Retained earnings / total assets | (5.05) | — | −7.08 | |
| EBIT / total assets | (0.45) | — | −1.47 | |
| Market value of equity / total liabilities | 15.79 | — | 9.48 | |
| Sales / total assets | 0.13 | — | 0.13 | |
| Altman Z-score | Grey zone | 2.15 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −3.25 | ||
Z and Z″ put Alterity Therapeutics Limited - Sponsored ADR in different zones: grey zone by Z, distress zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| ATHE Alterity Therapeutics Limited - Sponsored ADR | 2.2× |
| CRBU Caribou Biosciences, Inc. compare | −5.0× |
| RNXT RenovoRx, Inc. compare | −8.0× |
| MREO Mereo BioPharma Group plc - Sponsored ADR compare | −9.1× |
| GOSS Gossamer Bio, Inc. compare | −12.5× |
| LONA LeonaBio, Inc. compare | — |
| BOLD Boundless Bio, Inc. compare | — |
| RNTX Rein Therapeutics Inc. compare | — |
| INKT MiNK Therapeutics, Inc. compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets