VAREX IMAGING
VREX Healthcare Medical Devices
VAREX IMAGING’s revenue for fiscal 2025 (year ended September 2025) was $844.6 million, up 4.14% from fiscal 2024. In the quarter to June 2026, revenue grew 3.69%, EPS grew 117.2%, free cash flow grew 757.1% and total debt fell 5.55%, each against the same quarter a year earlier.
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VAREX IMAGING (VREX) Altman Z-score
VAREX IMAGING's Altman Z-score for fiscal 2025 is 1.66, 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 | 1.66 | (0.05) |
| FY2024 | 1.71 | (0.49) |
| FY2023 | 2.21 | (0.07) |
| FY2022 | 2.28 | (0.11) |
| FY2021 | 2.39 | 1.00 |
| FY2020 | 1.39 | (1.02) |
| FY2019 | 2.41 | (0.15) |
| FY2018 | 2.56 | 0.02 |
| FY2017 | 2.54 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.41 | — | 0.49 | |
| Retained earnings / total assets | (0.01) | — | −0.01 | |
| EBIT / total assets | (0.03) | — | −0.08 | |
| Market value of equity / total liabilities | 0.83 | — | 0.50 | |
| Sales / total assets | 0.76 | — | 0.76 | |
| Altman Z-score | Distress zone | 1.66 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.33 | ||
Z and Z″ put VAREX IMAGING in different zones: distress zone by Z, safe 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 |
|---|---|
| BBNX Beta Bionics, Inc. compare | 16.9× |
| INMD InMode Ltd. compare | 10.4× |
| SIBN SiBone compare | 7.2× |
| CTKB Cytek Biosciences, Inc. compare | 3.9× |
| VREX VAREX IMAGING | 1.7× |
| LMRI Lumexa Imaging Holdings, Inc. compare | 1.0× |
| AHCO AdaptHealth Corp. compare | 0.9× |
| QDEL QuidelOrtho Corporation compare | 0.1× |
| PACB Pacific Biosciences of California, Inc. compare | −6.0× |
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