What is 2seventy bio 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, 2seventy bio's Probability of Financial Distress (%) is 0.66%.
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 2seventy bio's Probability of Financial Distress (%)
For the Biotechnology subindustry, 2seventy bio'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.
2seventy bio's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, 2seventy bio's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where 2seventy bio's Probability of Financial Distress (%) falls into.
2seventy bio 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 |
| = | -5.01 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.66% |
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).
2seventy bio (2seventy bio) Business Description
Traded in Other Exchanges
N/A
Address
60 Binney Street, Cambridge, MA, USA, 02142
2seventy bio Inc is a cell and gene therapy company focused on the research, development, and commercialization of transformative treatments for cancer. The company operates in a single segment, focusing on researching, developing and commercializing potentially transformative treatments for cancer.
Executives
| Nick Leschly |
director, officer: President and CEO |
C/O BLUEBIRD BIO, INC., 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139 |
| Philip D Gregory |
officer: Chief Scientific Officer |
POINT RICHMOND TECH CENTER II, 501 CANAL BOULEVARD SUITE A100, RICHMOND CA 94804 |
| Baird William D Iii |
officer: Chief Financial Officer |
C/O BLUEBIRD BIO, INC., 60 BINNEY STREET, CAMBRIDGE MA 02142 |
| Yue Tang |
10 percent owner |
221 ELM ROAD, PRINCETON NJ 08540 |
| Kynam Fund Gp, Llc |
10 percent owner |
221 ELM ROAD, PRINCETON NJ 08540 |
| Kynam Global Healthcare Master Fund, Lp |
10 percent owner |
221 ELM ROAD, PRINCETON NJ 08540 |
| Kynam Capital Management Gp, Llc |
10 percent owner |
221 ELM ROAD, PRINCETON NJ 08540 |
| Kynam Capital Management, Lp |
10 percent owner |
221 ELM ROAD, PRINCETON NJ 08540 |
| Lin Wei |
director |
C/O ERASCA, INC., 10835 ROAD TO THE CURE, SUITE 140, SAN DIEGO CA 92121 |
| Nicola Heffron |
officer: Chief Operating Officer |
2SEVENTY BIO, INC., 60 BINNEY STREET, CAMBRIDGE MA 02142 |
| Marcela V. Maus |
director |
16 RICHMOND CIRCLE, LEXINGTON MA 02421 |
| Ramy Ibrahim |
director |
C/O SURFACE ONCOLOGY, 50 HAMPSHIRE STREET, 8TH FLOOR, CAMBRIDGE MA 02139 |
| Sarah Js Glickman |
director |
60 BINNEY STREET, C/O BLUEBIRD BIO, INC., CAMBRIDGE MA 02142 |
| Daniel Lynch |
director |
|
| Denice Torres |
director |
3 RABBIT RUN DRIVE, NEW HOPE PA 18938 |
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