Lucy Scientific Discovery Inc.
LSDIF Healthcare Drug Manufacturers Specialty & Generic
Operating cash flow growth for three consecutive years.
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Lucy Scientific Discovery Inc. (LSDIF) Altman Z-score
Lucy Scientific Discovery Inc.'s Altman Z-score for fiscal 2023 is −6.99, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2023 | −6.99 | — |
How fiscal 2023’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.13 | — | 0.15 | |
| Retained earnings / total assets | (5.06) | — | −7.08 | |
| EBIT / total assets | (0.67) | — | −2.20 | |
| Market value of equity / total liabilities | 3.56 | — | 2.14 | |
| Sales / total assets | 0.00 | — | 0.00 | |
| Altman Z-score | Distress zone | −6.99 | ||
| 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 |
|---|---|
| SXTC China SXT Pharmaceuticals, Inc. compare | −0.8× |
| SBFM Sunshine Biopharma, Inc. compare | −1.7× |
| LSDIF Lucy Scientific Discovery Inc. | −7.0× |
| PRFX PainReform Ltd. compare | −7.9× |
| IMCC IM Cannabis Corp. compare | −11.7× |
| PTPI Petros Pharmaceuticals, Inc. compare | −17.0× |
| BTAIQ BioXcel Therapeutics, Inc. compare | −26.3× |
| AKAN Akanda Corp. compare | −26.4× |
| NEPTF Neptune Wellness Solutions Inc. compare | −27.3× |
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