What is Eterna 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, Eterna Therapeutics's Probability of Financial Distress (%) is 0.90%.
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 Eterna Therapeutics's Probability of Financial Distress (%)
For the Biotechnology subindustry, Eterna 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.
Eterna Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Eterna Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Eterna Therapeutics's Probability of Financial Distress (%) falls into.
Eterna 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 |
| = | -4.70 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.90% |
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).
Eterna Therapeutics (Eterna Therapeutics) Business Description
Traded in Other Exchanges
N/A
Address
1035 Cambridge Street, Suite 18A, Cambridge, MA, USA, 02141
Eterna Therapeutics Inc is a biopharmaceutical company. The company develops transformational new medicines using various cell engineering technology. It is engaged in developing breakthrough mRNA cell engineering technologies to repair cellular dysfunction and treat a range of therapeutic indications. With its strategic partners, the group is developing nucleic acid and cell therapies that can significantly improve the health outcomes of patients with high unmet medical needs.
Executives
| Dorothy J Clarke |
director |
C/O ETERNA THERAPEUTICS INC., 1035 CAMBRIDGE STREET, STE. 18A, CAMBRIDGE MA 02141 |
| Charles Cherington |
10 percent owner |
ONE BOW STREET, CAMBRIDGE MA 02138 |
| Brant Binder |
director |
C/O TRUST CO OF THE SWEST, 200 PARK AVE SUITE 220, NEW YORK NY 01066 |
| Richard W Wagner |
director |
C/O PRAECIS PHARMACEUTICALS INC, 830 WINTER ST, WALTHAM MA 02451 |
| Curtis W Huft |
10 percent owner |
4510 LAMESA HWY, SNYDER TX 79549 |
| Freebird Partners Lp |
10 percent owner |
2800 POST OAK BLVD., SUITE 2000, HOUSTON TX 77056 |
| Freebird Investments Llc |
10 percent owner |
2800 POST OAK BLVD., SUITE 2000, HOUSTON TX 77056 |
| John D Halpern |
10 percent owner |
|
| Nicholas Jason Singer |
director |
1395 BRICKELL AVENUE, SUITE 800, MIAMI FL 33131 |
| William A. Wexler |
director |
12 GILL STREET, SUITE 4650, WOBURN MA 01801 |
| Gregory Fiore |
director |
10355 SCIENCE CENTER DRIVE, SUITE 150, SAN DIEGO CA 92121 |
| Andrew C. Jackson |
officer: Chief Financial Officer |
11988 EL CAMINO REAL STE. 650, SAN DIEGO CA 92130 |
| Matthew Angel |
officer: Interim President and CEO |
10531 4S COMMONS DRIVE, SUITE 160-550, SAN DIEGO CA 92127 |
| Heather B Redman |
director |
TWO NORTH NINTH STREET, ALLENTOWN PA 18101 |
| Erin S. Enright |
director |
666 PLAINSBORO ROAD, PLAINSBORO NJ 08536 |
Eterna Therapeutics (Eterna Therapeutics) Headlines
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