What is Hoth Therapeutics 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, Hoth Therapeutics's Probability of Financial Distress (%) is 1.15%.
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 Hoth Therapeutics's Probability of Financial Distress (%)
For the Biotechnology subindustry, Hoth Therapeutics'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.
Hoth Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Hoth Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Hoth Therapeutics's Probability of Financial Distress (%) falls into.
Hoth Therapeutics 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 |
| = | -4.46 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 1.15% |
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).
Hoth Therapeutics (Hoth Therapeutics) Business Description
Traded in Other Exchanges
N/A
Address
1 Rockefeller Plaza, Suite 1039, New York, NY, USA, 10020
Hoth Therapeutics Inc is a development-stage biopharmaceutical company. It is focused on targeted therapeutics for patients suffering from conditions such as atopic dermatitis, also known as eczema, chronic wounds, psoriasis, asthma, and acne. The company owns the BioLexa Platform which combines an FDA-approved zinc chelator with one or more approved antibiotics in a topical dosage form to address unchecked eczema flare-ups.
Executives
| Jeff Pavell |
director |
1 ROCKEFELLER PLAZA, SUITE 1039, NEW YORK NY 10020 |
| Robb Knie |
director, officer: CEO and President |
C/O INVENTERGY GLOBAL, INC., 900 EAST HAMILTON AVENUE SUITE 180, CAMPBELL CA 95008 |
| Stefanie Johns |
officer: Chief Scientific Officer |
1 ROCKEFELLER PLAZA, SUITE 1039, NEW YORK NY 10020 |
| Anthony Hayes |
director |
1796 SHADY LANE, COLUMBIA SC 29206 |
| Wayne Linsley |
director |
1 ROCKEFELLER PLAZA, SUITE 1039, NEW YORK NY 10020 |
| Graig Springer |
director |
1 ROCKEFELLER PLAZA, SUITE 1039, NEW YORK NY 10020 |
| Spherix Inc |
10 percent owner |
725 FIFTH AVENUE, 22ND FLOOR, NEW YORK NY 10022 |
| Vadim Mats |
director |
285 GRAND AVENUE, ENGLEWOOD NJ 07631 |
| Rice Kenneth L Jr |
director |
C/O 85 MAIN STREET, HOPKINTON MA 01748 |
| David Sarnoff |
director |
1 ROCKEFELLER PLAZA, SUITE 1039, NEW YORK NY 10020 |
| David S. Briones |
officer: Chief Financial Officer |
C/O PETRO RIVER OIL COMPANY, 1980 POST OAK BLVD., SUITE 2020, HOUSTON TX 77056 |
| Matthew D. Eitner |
10 percent owner |
44 BRAMS HILL DRIVE, MAHWAH NJ 07430 |
| Kevin Jess Poor |
10 percent owner |
750 BEULAHS LANE, IDAHO FALLS ID 83401 |
| James P. Ahern |
10 percent owner |
20 WEST 64TH STREET, APT 18RS, NEW YORK NY 10023 |
Hoth Therapeutics (Hoth Therapeutics) Headlines
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