Elanco Animal Health Incorporated
ELAN Healthcare Drug Manufacturers Specialty & Generic
Elanco Animal Health Incorporated’s revenue for fiscal 2025 (year ended December 2025) was $4.7 billion, up 6.22% from fiscal 2024. In the quarter to June 2026, revenue grew 10.2%, EPS grew 450.0%, free cash flow grew 35.6% and total debt fell 6.91%, each against the same quarter a year earlier. Revenue growth for three consecutive years; insiders bought in the last twelve months.
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Elanco Animal Health Incorporated (ELAN) Altman Z-score
Elanco Animal Health Incorporated's Altman Z-score for fiscal 2025 is 1.28, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 1.28 | 0.39 |
| FY2024 | 0.89 | 0.28 |
| FY2023 | 0.61 | (0.18) |
| FY2022 | 0.79 | (0.39) |
| FY2021 | 1.18 | 0.20 |
| FY2020 | 0.99 | (1.54) |
| FY2019 | 2.53 | 0.33 |
| FY2018 | 2.20 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.14 | — | 0.17 | |
| Retained earnings / total assets | (0.16) | — | −0.23 | |
| EBIT / total assets | 0.00 | — | 0.00 | |
| Market value of equity / total liabilities | 1.65 | — | 0.99 | |
| Sales / total assets | 0.35 | — | 0.35 | |
| Altman Z-score | Distress zone | 1.28 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.40 | ||
Z and Z″ put Elanco Animal Health Incorporated in different zones: distress zone by Z, grey 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 |
|---|---|
| KNSA Kiniksa Pharmaceuticals International, plc compare | 10.4× |
| NBIX Neurocrine Biosciences, Inc. compare | 7.8× |
| ALKS Alkermes plc compare | 5.3× |
| RDY Dr. Reddy's Laboratories Ltd compare | 5.3× |
| LNTH Lantheus Holdings, Inc. compare | 4.3× |
| HIMS Hims & Hers Health, Inc. compare | 4.1× |
| AMRX AMNEAL PHARMACEUTICALS, INC. compare | 1.9× |
| ELAN Elanco Animal Health Incorporated | 1.3× |
| VTRS Viatris Inc. compare | 0.6× |
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