Lite Strategy, Inc.
LITS Healthcare Biotechnology
Lite Strategy, Inc.’s revenue for fiscal 2024 (year ended June 2024) was $65.3 million, up 33.8% from fiscal 2023. In the quarter to June 2026, EPS fell 11.0% and free cash flow grew 179.3%, each against the same quarter a year earlier. Revenue growth for five consecutive years, operating cash flow growth for three; insiders bought in the last twelve months.
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Lite Strategy, Inc. (LITS) Altman Z-score
Lite Strategy, Inc.'s Altman Z-score for fiscal 2024 is −8.07, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2024 | −8.07 | (3.90) |
| FY2023 | −4.17 | (1.37) |
| FY2022 | −2.79 | (1.82) |
| FY2021 | −0.98 | (1.66) |
| FY2020 | 0.69 | 2.33 |
| FY2019 | −1.64 | (0.80) |
| FY2018 | −0.84 | (8.95) |
| FY2017 | 8.11 | — |
How fiscal 2024’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.78 | — | 0.94 | |
| Retained earnings / total assets | (9.38) | — | −13.14 | |
| EBIT / total assets | 0.35 | — | 1.16 | |
| Market value of equity / total liabilities | 2.32 | — | 1.39 | |
| Sales / total assets | 1.58 | — | 1.58 | |
| Altman Z-score | Distress zone | −8.07 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −18.94 | ||
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 |
|---|---|
| EDSA Edesa Biotech, Inc. compare | 22.3× |
| CRVO CervoMed Inc. compare | 0.3× |
| LITS Lite Strategy, Inc. | −8.1× |
| LBPS 4D pharma PLC Sponsored ADR compare | — |
| NNVC NanoViricides, Inc. compare | — |
| EXOZ eXoZymes Inc. compare | — |
| FLNA Cassava Sciences, Inc. compare | — |
| IRLA Quince Therapeutics, Inc. compare | — |
| LIANY LianBio Sponsored ADR 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