What is Aileron 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, Aileron Therapeutics's Probability of Financial Distress (%) is 0.33%.
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 Aileron Therapeutics's Probability of Financial Distress (%)
For the Biotechnology subindustry, Aileron 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.
Aileron Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Aileron Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Aileron Therapeutics's Probability of Financial Distress (%) falls into.
Aileron 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 |
| = | -5.71 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.33% |
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).
Aileron Therapeutics (Aileron Therapeutics) Business Description
Traded in Other Exchanges
N/A
Address
285 Summer Street, Unit 101, Boston, MA, USA, 02210
Aileron Therapeutics Inc is a clinical-stage biopharmaceutical company. It is focused on developing a novel class of therapeutics for the treatment of cancer and other diseases. The company's lead product candidate, ALRN-6924 is a novel chemoprotective medicine to treat and protect healthy cells in patients with cancer that harbors p53 mutations to reduce or eliminate chemotherapy-induced side effects.
Executives
| James Brian Windsor |
officer: See Remarks |
2600 VIA FORTUNA, SUITE 360, AUSTIN TX 78746 |
| William Fairey |
director |
C/O CHEMOCENTRYX, INC., 850 MAUDE AVE., MOUNTAIN VIEW CA 94043 |
| Alan A Musso |
director |
FULCRUM THERAPEUTICS, INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139 |
| Susan L. Drexler |
officer: See Remarks |
630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462 |
| Muneer A Satter |
10 percent owner |
C/O SATTER INVESTMENT MANAGEMENT, LLC, 676 NORTH MICHIGAN AVENUE, SUITE 4000, CHICAGO IL 60611 |
| Reinhard J. Ambros |
director |
C/O AILERON THERAPEUTICS, INC., 281 ALBANY STREET, CAMBRIDGE MA 02139 |
| Von Rickenbach Josef H |
director |
C/O PAREXEL INTERNATIONAL CORPORATION, WALTHAM MA 02451-1163 |
| Jeffrey Allen Bailey |
director |
BIODELIVERY SCIENCES INTERNATIONAL, INC., 4131 PARKLAKE AVE., SUITE 225, RALEIGH NC 27612 |
| Vojo Vukovic |
officer: SVP, Chief Medical Officer |
C/O SYNTA PHARMACEUTICALS CORP., 45 HARTWELL AVENUE, LEXINGTON MA 02421 |
| Kathryn Gregory |
officer: SVP, Chief Business Officer |
305 THAYER POND ROAD, WILTON CT 06897 |
| William Mckee |
director |
|
| Nolan Howard Sigal |
director |
941 BERRY AVENUE, LOS ALTOS CA 94024 |
| Novartis Bioventures Ltd |
10 percent owner |
C/O NOVARTIS INTERNATIONAL AG, WSJ-200.220, CH-4002 BASEL V8 0000000000 |
| Rick Wanstall |
officer: VP, Finance and Operations |
C/O AILERON THERAPEUTICS, INC., 490 ARSENAL WAY, WATERTOWN MA 02472 |
| Longenecker John P Phd |
officer: President and CEO |
10445 PACIFIC CENTER CT, SAN DIEGO CA 92121 |
Aileron Therapeutics (Aileron Therapeutics) Headlines
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