What is Salarius 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, Salarius Pharmaceuticals's Probability of Financial Distress (%) is 33.79%.
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 Salarius Pharmaceuticals's Probability of Financial Distress (%)
For the Biotechnology subindustry, Salarius 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.
Salarius Pharmaceuticals's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Salarius Pharmaceuticals's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Salarius Pharmaceuticals's Probability of Financial Distress (%) falls into.
Salarius 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 |
| = | -0.67 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 33.79% |
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).
Salarius Pharmaceuticals (Salarius Pharmaceuticals) Business Description
Traded in Other Exchanges
Address
2450 Holcombe Boulevard, Suite X, Houston, TX, USA, 77021
Salarius Pharmaceuticals Inc is a clinical-stage biopharmaceutical company focused on developing effective treatments for cancers with high, unmet medical needs. The Company has focused on two classes of drugs that address gene dysregulation: targeted protein inhibitors and targeted protein degradation. Its Pipeline includes seclidemstat (SP-2577), a small molecular inhibitor, and SP-3164, a small molecular protein degrader.
Executives
| Tess Burleson |
director |
2450 HOLCOME BLVD., SUITE J-608, HOUSTON TX 77021 |
| Jonathan I Lieber |
director |
C/O HISTOGENICS CORPORATION, 830 WINTER STREET #3, WALTHAM MA 02451 |
| William K. Mcvicar |
director |
C/O INOTEK PHARMACEUTICALS CORPORATION, 131 HARTWELL AVENUE, SUITE 105, LEXINGTON MA 02421 |
| Arnold C Hanish |
director |
201 ELLIOTT AVENUE WEST, SEATTLE WA 98119 |
| Mark J Rosenblum |
officer: Exec VP Finance, Interim CFO |
3990 SPRING VALLEY ROAD, APT. 1218, DALLAS TX 75244 |
| David J. Arthur |
director, officer: Chief Executive Officer |
2450 HOLCOME BLVD., SUITE J-608, HOUSTON TX 77021 |
| Scott Jordan |
officer: Chief Financial Officer |
2450 HOLCOME BLVD., SUITE J-608, HOUSTON TX 77021 |
| Mccreedy Bruce J Jr. |
director |
2450 HOLCOME BLVD., SUITE J-608, HOUSTON TX 77021 |
| Jonathan P Northrup |
director |
2450 HOLCOME BLVD., SUITE J-608, HOUSTON TX 77021 |
| Pao-yu Chuang |
officer: Controller |
2450 HOLCOMBE BLVD., SUITE J-608, HOUSTON TX 77021 |
| Paul Lammers |
director |
2408 TIMBERLOCH PLACE, B-7, THE WOODLANDS TX 77380 |
| Boston Foundation, Inc. |
10 percent owner |
75 ARLINGTON STREET, BOSTON MA 02116 |
| Christoph H Westphal |
10 percent owner |
C/O ALNYLAM PHARMACEUTICALS, INC, 300 THIRD STREET, CAMBRIDGE MA 02142 |
| Longwood Fund Ii, L.p. |
10 percent owner |
800 BOYLSTON STREET, SUITE 1555, BOSTON MA 02199 |
| Roger D Tung |
director |
99 HAYDEN AVENUE, SUITE 500, LEXINGTON MA 02421 |
Salarius Pharmaceuticals (Salarius Pharmaceuticals) Headlines
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