What is Better 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, Better Therapeutics's Probability of Financial Distress (%) is 99.39%.
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 Better Therapeutics's Probability of Financial Distress (%)
For the Biotechnology subindustry, Better 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.
Better Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Better Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Better Therapeutics's Probability of Financial Distress (%) falls into.
Better 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 |
| = | 5.10 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 99.39% |
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).
Better Therapeutics (Better Therapeutics) Business Description
Traded in Other Exchanges
N/A
Address
548 Market Street, Suite 49404, San Francisco, CA, USA, 94104
Better Therapeutics Inc is a prescription digital therapeutics company developing a novel form of cognitive behavioural therapy to address the root causes of cardiometabolic diseases. The company has developed a proprietary platform for the development of FDA-regulated, software-based solutions for type 2 diabetes, heart disease and other conditions.
Executives
| Elder Granger |
director |
5176 S. LEWISTON WAY, CENTENNIAL CO 80015 |
| Mark A. Berman |
officer: Chief Medical Officer |
548 MARKET STREET, #49404, SAN FRANCISCO CA 94104 |
| Geoffrey M. Parker |
director |
15 RIORDAN PLACE, MENLO PARK CA 94025 |
| Frank Karbe |
director, officer: See Remarks |
C/O MYOVANT SCIENCES INC., 2000 SIERRA POINT PARKWAY, 9TH FLOOR, BRISBANE CA 94005 |
| David P Perry |
director, 10 percent owner, officer: See Remarks |
1020 EAST MEADOW CIRCLE, PALO ALTO CA 94303 |
| Andrew J. Armanino |
director |
C/O CALIFORNIA BANCORP, 1300 CLAY STREET, FIFTH FLOOR, OAKLAND CA 94612 |
| Georgianna Maule-ffinch 2015 Trust |
10 percent owner |
C/O BETTER THERAPEUTICS, INC., 548 MARKET STREET, #49404, SAN FRANCISCO CA 94104 |
| Mark Heinen |
officer: See Remarks |
548 MARKET STREET, #49404, SAN FRANCISCO CA 94104 |
| Risa J Lavizzo-mourey |
director |
GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 60661 |
| Kevin J Appelbaum |
director, 10 percent owner, officer: Chief Executive Officer |
4160 DUBLIN BLVD., SUITE 200, DUBLIN CA 94568 |
| Suying Liu |
director |
311 WEST 43RD STREET, 12TH FLOOR, NEW YORK NY 10036 |
| Justin Zamirowski |
officer: Chief Commercial Officer |
548 MARKET STREET, #49404, SAN FRANCISCO CA 94104 |
| Kristin Wynholds |
officer: Chief Product Officer |
548 MARKET STREET, #49404, SAN FRANCISCO CA 94104 |
| Richard H Carmona |
director |
1221 BROADWAY, OAKLAND CA 94612 |
| David P. Perry 2015 Trust |
10 percent owner |
548 MARKET STREET, #49404, SAN FRANCISCO CA 94104 |
Better Therapeutics (Better Therapeutics) Headlines
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