Zimmer Biomet Holdings, Inc.
ZBH Healthcare Medical Devices
Zimmer Biomet Holdings, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $8.2 billion, up 7.20% from fiscal 2024. In the quarter to June 2026, revenue grew 4.80%, EPS grew 33.8%, free cash flow grew 13.1% and total debt fell 1.23%, each against the same quarter a year earlier. Member of the S&P 500; dividend growth for ten consecutive years, revenue growth for five.
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Zimmer Biomet Holdings, Inc. (ZBH) Altman Z-score
Zimmer Biomet Holdings, Inc.'s Altman Z-score for fiscal 2025 is 2.38, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.38 | (0.48) |
| FY2024 | 2.86 | (0.15) |
| FY2023 | 3.01 | 0.04 |
| FY2022 | 2.97 | 0.44 |
| FY2021 | 2.53 | 0.04 |
| FY2020 | 2.49 | (0.11) |
| FY2019 | 2.59 | 0.65 |
| FY2018 | 1.94 | (0.06) |
| FY2017 | 2.00 | 0.36 |
| FY2016 | 1.64 | 0.10 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.11 | — | 0.13 | |
| Retained earnings / total assets | 0.50 | — | 0.70 | |
| EBIT / total assets | 0.05 | — | 0.16 | |
| Market value of equity / total liabilities | 1.71 | — | 1.03 | |
| Sales / total assets | 0.36 | — | 0.36 | |
| Altman Z-score | Grey zone | 2.38 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.96 | ||
Z and Z″ put Zimmer Biomet Holdings, Inc. in different zones: grey 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 |
|---|---|
| PEN Penumbra, Inc. compare | 20.2× |
| GMED Globus Medical, Inc. compare | 11.3× |
| DXCM DexCom, Inc. compare | 6.4× |
| STE STERIS plc compare | 5.1× |
| SNN Smith & Nephew SNATS, Inc. compare | 3.5× |
| BIO.B Bio-Rad Laboratories, Inc. compare | 3.2× |
| ZBH Zimmer Biomet Holdings, Inc. | 2.4× |
| PHG Koninklijke Philips N.V. compare | 2.0× |
| GEHC GE HealthCare Technologies Inc. compare | 2.0× |
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
More on ZBH
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- Beneish M-score
- The full statement