eFFECTOR Therapeutics, Inc.
EFTR Healthcare Biotechnology
Follow EFTR
eFFECTOR Therapeutics, Inc. (EFTR) Altman Z-score
eFFECTOR Therapeutics, Inc.'s Altman Z-score for fiscal 2022 is −9.93, in the distress zone (below 1.81).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2022 | −9.93 | (8.00) |
| FY2021 | −1.93 | — |
How fiscal 2022’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.10 | — | 0.12 | |
| Retained earnings / total assets | (4.94) | — | −6.91 | |
| EBIT / total assets | (1.11) | — | −3.68 | |
| Market value of equity / total liabilities | 0.70 | — | 0.42 | |
| Sales / total assets | 0.12 | — | 0.12 | |
| Altman Z-score | Distress zone | −9.93 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −22.76 | ||
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 |
|---|---|
| EFTR eFFECTOR Therapeutics, Inc. | −9.9× |
| SCNI Scinai Immunotherapeutics Ltd. Sponsored ADR compare | −16.9× |
| BDRX Biodexa Pharmaceuticals PLC Unsponsored ADR compare | −21.4× |
| ATXI Avenue Therapeutics, Inc. compare | −51.5× |
| SEELQ Seelos Therapeutics, Inc. compare | −96.9× |
| VRPX Virpax Pharmaceuticals, Inc. compare | — |
| CDT CDT Equity Inc. compare | — |
| VINC Vincerx Pharma, Inc. compare | — |
| CERO CERo Therapeutics Holdings, 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