What is Aura Biosciences 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, Aura Biosciences's Probability of Financial Distress (%) is 0.04%.
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 Aura Biosciences's Probability of Financial Distress (%)
For the Biotechnology subindustry, Aura Biosciences'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.
Aura Biosciences's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Aura Biosciences's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Aura Biosciences's Probability of Financial Distress (%) falls into.
Aura Biosciences 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 |
| = | -7.78 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.04% |
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).
Aura Biosciences (Aura Biosciences) Business Description
Traded in Other Exchanges
N/A
Address
85 Bolton Street, Cambridge, MA, USA, 02140
Aura Biosciences Inc is a clinical-stage oncology company developing a novel technology platform based on virus-like drug conjugates to target and destroy cancer cells selectively while activating the immune system to create long-lasting anti-tumor immunity.
Executives
| Matrix Capital Management Company, Lp |
10 percent owner |
1000 WINTER STREET, C/O MATRIX CAPITAL MANAGEMENT, WALTHAM MA 02451 |
| David Michael Johnson |
director |
C/O ZENTALIS PHARMACEUTICALS, LLC, 530 SEVENTH AVENUE, SUITE 2201, NEW YORK NY 10018 |
| Julie B Feder |
officer: Chief Financial Officer |
C/O VERASTEM, INC., 117 KENDRICK STREET, SUITE 500, NEEDHAM MA 02494 |
| De Los Pinos Elisabet |
director, officer: Chief Executive Officer |
C/O AURA BIOSCIENCES, INC., 85 BOLTON STREET, CAMBRIDGE MA 02140 |
| Janet Jill Hopkins |
officer: See Remarks |
C/O AURA BIOSCIENCES, INC., 80 GUEST STREET, BOSTON MA 01235 |
| Cadmus Rich |
officer: See Remarks |
C/O AURA BIOSCIENCES, INC., 85 BOLTON STREET, CAMBRIDGE MA 02140 |
| Rosch Mark De |
officer: Chief Operating Officer |
C/O AURA BIOSCIENCES, INC., 85 BOLTON STREET, CAMBRIDGE MA 02140 |
| Medicxi Ventures Management (jersey) Ltd |
10 percent owner |
C/O INTERTRUST FUND SERVICES (JERSEY), 44 ESPLANADE, ST. HELIER Y9 JE4 9WG |
| Medicxi Growth I Lp |
10 percent owner |
C/O ELIAN FUND SERVICES (JERSEY) LIMITED, 44 ESPLANADE, ST HELIER Y9 JE4 9WG |
| Giovanni Mariggi |
director |
C/O AURA BIOSCIENCES, INC., 85 BOLTON STREET, CAMBRIDGE MA 02140 |
| Medicxi Growth I Gp Ltd |
10 percent owner |
C/O INTERTRUST FUND SERVICES (JERSEY), 44 ESPLANADE, ST. HELIER Y9 JE4 9WG |
| Medicxi Growth Co-invest I Lp |
10 percent owner |
C/O INTERTRUST FUND SERVICES (JERSEY), 44 ESPLANADE, ST. HELIER Y9 JE4 9WG |
| David E. Goel |
10 percent owner |
C/O MATRIX CAPITAL MANAGEMENT CO., LP, 1000 WINTER STREET, SUITE 4500, WALTHAM MA 02451 |
| Karan S. Takhar |
director |
C/O ZENTALIS PHARMACEUTICALS,INC., 530 SEVENTH AVENUE, SUITE 2201, NEW YORK NY 10018 |
| Antony C. Mattessich |
director |
C/O OCULAR THERAPEUTIX, INC., 34 CROSBY DR., SUITE 105, BEDFORD MA 01730 |
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