What is AVEO Pharmaceuticals Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, AVEO Pharmaceuticals's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of AVEO Pharmaceuticals's Probability of Financial Distress (%)
For the Biotechnology subindustry, AVEO Pharmaceuticals's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AVEO Pharmaceuticals's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, AVEO Pharmaceuticals's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where AVEO Pharmaceuticals's Probability of Financial Distress (%) falls into.
AVEO Pharmaceuticals Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -11.08 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
AVEO Pharmaceuticals (AVEO Pharmaceuticals) Business Description
Traded in Other Exchanges
N/A
Address
30 Winter Street, Boston, MA, USA, 02108
AVEO Pharmaceuticals Inc is a commercial-stage, oncology-focused biopharmaceutical company engaged in offering medicines that provide a better life for patients with cancer. The company markets FOTIVDA (tivozanib) in the United States. FOTIVDA is an oral, next-generation vascular endothelial growth factor receptor, or VEGFR, tyrosine kinase inhibitor, or TKI. The group primarily operates in the U.S.
Executives
| Jebediah Ledell |
officer: Chief Operating Officer |
C/O AVEO PHARMACEUTICALS, INC., 30 WINTER STREET, BOSTON MA 02108 |
| Michael P Bailey |
director, officer: President & CEO |
IMCLONE SYSTEMS INCORPORATED, 180 VARICK STREET, 6TH FLOOR, NEW YORK NY 10014 |
| Michael Ferraresso |
officer: Chief Commercial Officer |
AVEO PHARMACEUTICALS, INC., 30 WINTER STREET, BOSTON MA 02108 |
| Kevin Joseph Cullen |
director |
AVEO PHARMACEUTICALS, INC., 30 WINTER STREET, BOSTON MA 02108 |
| Epperly Corinne |
director |
AVEO PHARMACEUTICALS, INC., 30 WINTER STREET, BOSTON MA 02108 |
| Peter W. Sonsini |
10 percent owner |
2855 SAND HILL ROAD, MENLO PARK CA 94025 |
| Florence Anthony A. Jr. |
10 percent owner |
5425 WISCONSIN AVENUE, SUITE 800, CHEVY CHASE MD 20815 |
| Forest Baskett |
10 percent owner |
|
| Joshua Makower |
10 percent owner |
1212 TERRA BELLA AVENUE, MOUNTAIN VIEW CA 94043 |
| Scott D Sandell |
10 percent owner |
|
| Growth Equity Opportunities Iv, Llc |
10 percent owner |
1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093 |
| Mohamad Makhzoumi |
10 percent owner |
2855 SAND HILL ROAD, MENLO PARK CA 94025 |
| Erick Lucera |
officer: Chief Financial Officer |
138 THISTLE ROAD, NORTH ANDOVER MA 08145 |
| Scarlett Spring |
director |
AVEO PHARMACEUTICALS, INC., ONE BROADWAY, 14TH FLOOR, CAMBRIDGE MA 02142 |
| Peter J Barris |
10 percent owner |
1119 ST PAUL STREET, BALTIMORE MD 21202 |
AVEO Pharmaceuticals (AVEO Pharmaceuticals) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
AVEO has been successfully added to your