What is Generation Bio Co 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, Generation Bio Co's Probability of Financial Distress (%) is 0.54%.
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 Generation Bio Co's Probability of Financial Distress (%)
For the Biotechnology subindustry, Generation Bio Co'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.
Generation Bio Co's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Generation Bio Co's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Generation Bio Co's Probability of Financial Distress (%) falls into.
Generation Bio Co 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 |
| = | -5.22 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.54% |
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).
Generation Bio Co (Generation Bio Co) Business Description
Traded in Other Exchanges
N/A
Address
301 Binney Street, Cambridge, MA, USA, 02142
Generation Bio Co is a genetics medicine company that is focused on creating gene therapies to provide durable and redosable treatments for patients suffering from rare and untreated diseases. The company focuses on liver and retina related diseases.
Executives
| Dannielle Appelhans |
director |
C/O RUBIUS THERAPEUTICS, INC., 399 BINNEY STREET, SUITE 300, CAMBRIDGE MA 02139 |
| Rowland Charles A Jr |
director |
3338 LANCASHIRE RD, FURLONG PA 18925 |
| Donald William Nicholson |
director |
C/O GENERATION BIO CO., 301 BINNEY STREET, SUITE 401, CAMBRIDGE MA 02142 |
| Anthony G. Quinn |
director |
C/O AEGLEA BIOTHERAPEUTICS, INC., 901 S. MOPAC EXPWY, STE. 250, AUSTIN TX 78746 |
| Antoinette Paone |
officer: CHIEF OPERATING OFFICER |
C/O GENERATION BIO CO., 301 BINNEY STREET, SUITE 401, CAMBRIDGE MA 02142 |
| Yalonda Howze |
officer: CHIEF LEGAL OFFICER |
C/O CODIAK BIOSCIENCES, INC., 35 CAMBRIDGEPARK DRIVE, SUITE 500, CAMBRIDGE MA 02140 |
| Phillip Samayoa |
officer: CHIEF STRATEGY OFFICER |
C/O GENERATION BIO CO., 301 BINNEY STREET, SUITE 401, CAMBRIDGE MA 02142 |
| Jason P Rhodes |
director |
C/O EPIZYME, INC., 400 TECHNOLOGY SQUARE, 4TH FLOOR, CAMBRIDGE MA 02139 |
| Atlas Venture Associates X, L.p. |
10 percent owner |
400 TECHNOLOGY SQ., 10TH FLOOR, CAMBRIDGE MA 02139 |
| Matthew Stanton |
officer: Chief Scientific Officer |
C/O GENERATION BIO CO., 301 BINNEY STREET, SUITE 401, CAMBRIDGE MA 02142 |
| Douglas Kerr |
officer: Chief Development Officer |
C/O GENERATION BIO CO., 301 BINNEY STREET, SUITE 401, CAMBRIDGE MA 02142 |
| Geoff Mcdonough |
director, 10 percent owner, officer: See Remarks |
C/O SURFACE ONCOLOGY, INC., 50 HAMPSHIRE ST., 8TH FLOOR, CAMBRIDGE MA 02139 |
| Tracy Zimmermann |
officer: Chief Development Officer |
C/O GENERATION BIO CO., 301 BINNEY STREET, SUITE 401, CAMBRIDGE MA 02142 |
| Cooper Ronald Harold Wilfred |
director |
C/O GENOCEA BIOSCIENCES, INC., 100 ACORN PARK DRIVE, 5TH FLOOR, CAMBRIDGE MA 02140 |
| Mark D. Angelino |
officer: Chief Operating Officer |
GENERATION BIO CO., 301 BINNEY STREET, SUITE 401, CAMBRIDGE MA 02142 |
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