T2 Biosystems, Inc.
TTOO Healthcare Diagnostics & Research
T2 Biosystems, Inc.’s revenue for fiscal 2023 (year ended December 2023) was $7.2 million, down 67.8% from fiscal 2022. Operating cash flow growth for three consecutive years.
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T2 Biosystems, Inc. (TTOO) Altman Z-score
T2 Biosystems, Inc.'s Altman Z-score for fiscal 2023 is −28.92, 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 | −28.92 | (2.86) |
| FY2022 | −26.06 | (13.93) |
| FY2021 | −12.14 | (3.84) |
| FY2020 | −8.29 | 17.68 |
| FY2019 | −25.97 | (17.02) |
| FY2018 | −8.95 | 1.13 |
| FY2017 | −10.08 | (5.98) |
| FY2016 | −4.10 | (1.03) |
| FY2015 | −3.07 | — |
How fiscal 2023’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.89) | — | −1.07 | |
| Retained earnings / total assets | (16.79) | — | −23.51 | |
| EBIT / total assets | (1.43) | — | −4.71 | |
| Market value of equity / total liabilities | 0.26 | — | 0.16 | |
| Sales / total assets | 0.21 | — | 0.21 | |
| Altman Z-score | Distress zone | −28.92 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −70.64 | ||
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 |
|---|---|
| PMD Psychemedics Corporation compare | 1.3× |
| ADVB Advanced Biomed Inc. compare | 0.7× |
| NOTVQ Inotiv, Inc. compare | −1.1× |
| NDRA ENDRA Life Sciences Inc. compare | −5.3× |
| DMTKQ DermTech, Inc. compare | −6.5× |
| BIAF bioAffinity Technologies, Inc. compare | −10.5× |
| ISPC iSpecimen Inc. compare | −14.8× |
| TTOO T2 Biosystems, Inc. | −28.9× |
| XWEL XWELL, Inc. compare | −63.8× |
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