Denali Therapeutics Inc.
DNLI Healthcare Biotechnology
In the quarter to June 2026, revenue fell 89.7%, EPS grew 5.56%, free cash flow fell 22.9% and total debt fell 1.76%, each against the same quarter a year earlier. Revenue growth for three consecutive years.
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Denali Therapeutics Inc. (DNLI) Altman Z-score
Denali Therapeutics Inc.'s Altman Z-score for fiscal 2023 is 13.78, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2023 | 13.78 | 9.56 |
| FY2022 | 4.22 | (2.28) |
| FY2021 | 6.50 | (6.66) |
| FY2020 | 13.16 | 8.32 |
| FY2019 | 4.85 | (5.42) |
| FY2018 | 10.27 | — |
How fiscal 2023’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.85 | — | 1.03 | |
| Retained earnings / total assets | (0.97) | — | −1.35 | |
| EBIT / total assets | (0.17) | — | −0.56 | |
| Market value of equity / total liabilities | 23.97 | — | 14.38 | |
| Sales / total assets | 0.29 | — | 0.29 | |
| Altman Z-score | Safe zone | 13.78 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 10.11 | ||
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 |
|---|---|
| XENE Xenon Pharmaceuticals Inc. compare | 37.8× |
| IDYA IDEAYA Biosciences, Inc. compare | 20.7× |
| DNLI Denali Therapeutics Inc. | 13.8× |
| NRIX Nurix Therapeutics, Inc. compare | 3.8× |
| RCUS Arcus Biosciences, Inc. compare | 1.1× |
| ZLAB Zai Lab Limited Unsponsored ADR compare | −0.2× |
| CELC Celcuity, Inc. compare | — |
| DYN Dyne Therapeutics, Inc. compare | — |
| ELVN Enliven 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