What is Assertio Holdings 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, Assertio Holdings's Probability of Financial Distress (%) is 2.95%.
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 Assertio Holdings's Probability of Financial Distress (%)
For the Drug Manufacturers - Specialty & Generic subindustry, Assertio Holdings'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.
Assertio Holdings's Probability of Financial Distress (%) Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Assertio Holdings's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Assertio Holdings's Probability of Financial Distress (%) falls into.
Assertio Holdings 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 |
| = | -3.49 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 2.95% |
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).
Assertio Holdings (Assertio Holdings) Business Description
Traded in Other Exchanges
N/A
Address
100 South Saunders Road, Suite 300, Lake Forest, IL, USA, 60045
Assertio Holdings Inc is a pharmaceutical company. It is engaged in providing solutions to advance patient care in the areas of neurology, orphan and specialty medicines. The company markets three FDA-approved products for various neurological conditions including Gralise, tablets for the management of postherpetic neuralgia; CAMBIA, for acute treatment of migraine attacks with or without aura in adults 18 years of age or older; and Zipsor, liquid-filled capsules for relief of mild to moderate pain.
Executives
| Daniel A. Peisert |
director, officer: President & CEO |
C/O ASSERTIO THERAPEUTICS, INC., 100 SOUTH SAUNDERS ROAD, SUITE 300, LAKE FOREST IL 60045 |
| Paul Schwichtenberg |
officer: SVP and CFO |
100 SOUTH SAUNDERS ROAD, SUITE 300, LAKE FOREST IL 60045 |
| Ajay Patel |
officer: SVP and CAO |
100 SOUTH SAUNDERS ROAD, SUITE 300, LAKE FOREST IL 60045 |
| Sam Schlessinger |
officer: SVP, General Counsel |
100 SOUTH SAUNDERS ROAD, SUITE 300, LAKE FORREST IL 60045 |
| William Mckee |
director |
|
| Jeff L Vacirca |
director |
4747 EXECUTIVE DRIVE, SUITE 510, SAN DIEGO CA 92121 |
| Heather L Mason |
director |
100 SOUTH SAUNDERS ROAD, SUITE 300, LAKE FOREST IL 60045 |
| James L Tyree |
director |
100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064-6400 |
| Crg Partners Iii - Parallel Fund (a) L.p. |
10 percent owner |
C/O CAPITAL ROYALTY L.P., 1000 MAIN STREET, SUITE 2500, HOUSTON TX 77002 |
| Mark Strobeck |
officer: EVP & Chief Operating Officer |
460 EAST SWEDESFORD ROAD, SUITE 1050, WAYNE PA 19087 |
| Crg Partners Iii L.p. |
10 percent owner |
1000 MAIN STREET, SUITE 2500, HOUSTON TX 77002 |
| Cr Group L.p. |
10 percent owner |
1000 MAIN STREET, SUITE 2500, HOUSTON TX 77002 |
| Andrea Heslin Smiley |
director |
600 LEE ROAD, SUITE 100, WAYNE PA 19087 |
| Megan C. Timmins |
officer: SVP, Gen Csl & Sec |
600 LEE ROAD, SUITE 100, WAYNE PA 19087 |
| Crg Partners Iii - Parallel Fund B (cayman) L.p. |
10 percent owner |
1000 MAIN STREET, SUITE 2500, HOUSTON TX 77002 |
Assertio Holdings (Assertio Holdings) Headlines
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