What is DiaMedica 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, DiaMedica Therapeutics's Probability of Financial Distress (%) is 0.05%.
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 DiaMedica Therapeutics's Probability of Financial Distress (%)
For the Biotechnology subindustry, DiaMedica 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.
DiaMedica Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, DiaMedica Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where DiaMedica Therapeutics's Probability of Financial Distress (%) falls into.
DiaMedica 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 |
| = | -7.62 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.05% |
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).
DiaMedica Therapeutics (DiaMedica Therapeutics) Business Description
Traded in Other Exchanges
N/A
Address
301 Carlson Parkway, Suite 210, Minneapolis, MN, USA, 55305
DiaMedica Therapeutics Inc is a clinical-stage biopharmaceutical company. The company is principally engaged in the business activity of developing treatments for unmet clinical needs or where no therapies are available with a primary focus on chronic kidney disease and acute ischemicstroke. Its pipeline product DM199 is a recombinant form of human tissue kallikrein-1.
Executives
| Jan Stahlberg |
10 percent owner |
C/O TRILL INVEST AB, SVEAVAGEN 17 FL 18, STOCKHOLM V7 SE 111 57 |
| Scott Kellen |
officer: CFO and Secretary |
3405 ANNAPOLIS LANE, SUITE 200, MINNEAPOLIS MN 55447 |
| Randall Michael Giuffre |
director |
2 CARLSON PARKWAY, SUITE 260, MINNEAPOLIS MN 55447 |
| Ab Trill |
10 percent owner |
SVEAVAGEN 17, 18TH FLOOR, STOCKHOLM V7 SE-11157 |
| Richard D. Pilnik |
director |
2 CARLSON PARKWAY, SUITE 260, MINNEAPOLIS MN 55447 |
| Dietrich John Pauls |
director, officer: President and CEO |
2 CARLSON PARKWAY, SUITE 260, MINNEAPOLIS MN 55447 |
| Richard Ii Jacinto |
10 percent owner |
394 SADDLE BACK TRAIL, FRANKLIN LAKES NJ 07417 |
| David J. Wambeke |
officer: Chief Business Officer |
301 CARLSON PARKWAY, SUITE 210, MINNEAPOLIS MN 55305 |
| Private Ab Tomeqt |
10 percent owner |
C/O KINKON AB, BIBLIOTEKSGATAN 25, STOCKHOLM V8 11435 |
| Koch Thomas Von |
10 percent owner |
TOMENTERPRISE AB, BOX 5322, STOCKHOLM V7 102 47 |
| Ab Tomenterprise |
10 percent owner |
C/O EQT PARTNERS AB, BOX 16509, STOCKHOLM V7 103 27 |
| Charles Pauling Semba |
director |
TWO CARLSON PARKWAY, SUITE 260, MINNEAPOLIS MN 55447 |
| Richard Kuntz |
director |
MEDTRONIC, INC., 710 MEDTRONIC PWKY MS LC 310, MINNEAPOLIS MN 55432 |
| Tanya Lewis |
director |
C/O KARYOPHARM THERAPEUTICS INC., 85 WELLS AVE., NEWTON MA 02459 |
| Julie Vanorsdel Daves |
officer: SVP Clinical Development Oper. |
301 CARLSON PARKWAY, SUITE 210, MINNEAPOLIS MN 55305 |
DiaMedica Therapeutics (DiaMedica Therapeutics) Headlines
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