Nurix Therapeutics (Nurix Therapeutics) Probability of Financial Distress (%) : 0.15% (As of May. 15, 2024)

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What is Nurix 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, Nurix Therapeutics's Probability of Financial Distress (%) is 0.15%.

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 Nurix Therapeutics's Probability of Financial Distress (%)

For the Biotechnology subindustry, Nurix 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.

Nurix Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Nurix Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Nurix Therapeutics's Probability of Financial Distress (%) falls into.

Nurix 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

-6.49

The Probability of Financial Distress (%) (PFD) was then obtianed by:

PFD	=	1	/	(1 + e^(-LPFD))	*	100%
	=	0.15%

The eight explanatory variables are:

1. NIMTAAVG = Net Income to Market Total Assets

NIMTAAVG	=	Net Income	/	Market Total Assets
	=	Net Income	/	(Market Cap + Total Liabilities)

*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

TLMTA

Total Liabilities

Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For non-financial companies, CASHMTA is measured as:

CASHMTA

Cash, Cash Equivalents, Marketable Securities

Market Total Assets

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

MB	=	Market Cap	/	Adjusted Book Equity
	=	Market Cap	/	(Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

Nurix Therapeutics (NAS:NRIX) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.

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Nurix Therapeutics (Nurix Therapeutics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Nurix Therapeutics Inc (NAS:NRIX) » Definitions » Probability of Financial Distress (%)

Comparable Companies

Traded in Other Exchanges

N/A

Address

1700 Owens Street, Suite 205, San Francisco, CA, USA, 94158

Website

http://www.nurixtx.com

Nurix Therapeutics Inc is a biopharmaceutical company focused on the discovery, development and commercialization of oral, small molecule therapies designed to modulate cellular protein levels as a novel treatment approach for cancer and immune disorders. The company's pipeline comprises targeted protein degraders of Brutons tyrosine kinase, or BTK, a B-cell signaling protein, and inhibitors of Casitas B-lineage lymphoma proto-oncogene-B, or CBL-B, an E3 ligase that regulates T cell activation. Its drug candidate from protein degradation portfolio, NX-2127, is an orally available BTK degrader for the treatment of relapsed or refractory B-cell malignancies. Its drug candidate from E3 ligase inhibitor portfolio, NX-1607, is an orally available CBL-B inhibitor for immuno-oncology indications.

Executives

Houte Hans Van	officer: Chief Financial Officer	C/O NURIX THERAPEUTICS, INC., 1700 OWENS STREET, SUITE 205, SAN FRANCISCO CA 94158
Christine Ring	officer: General Counsel	C/O NURIX THERAPEUTICS, INC., 1700 OWENS STREET, SUITE 205, SAN FRANCISCO CA 94158
Gwenn Hansen	officer: Chief Scientific Officer	C/O NURIX THERAPEUTICS, INC., 1700 OWENS STREET, SUITE 205, SAN FRANCISCO CA 94158
Stefani Wolff	officer: EVP and COO	C/O PRINCIPIA BIOPHARMA INC., 400 EAST JAMIE COURT, SUITE 302, SOUTH SAN FRANCISCO CA 94080
Edward C Saltzman	director	C/O NURIX THERAPEUTICS, 1700 OWENS STREET, SUITE 205, SAN FRANCISCO CA 94158
Paul M Silva	director	C/O VERTEX PHARMACEUTICALS INCORPORATED, 130 WAVERLY ST, CAMBRIDGE MA 02139
Judith A Reinsdorf	director	C. R. BARD, INC., 730 CENTRAL AVENUE, MURRAY HILL NJ 07974
Pierre Beaurang	officer: Chief Business Officer	C/O NURIX THERAPEUTICS, INC., 1700 OWENS STREET, SUITE 205, SAN FRANCISCO CA 94158
Clay B Siegall	director	21823 30TH DR SE, BOTHELL WA 98021
Ponoi Capital, Lp	10 percent owner	1700 OWENS STREET, SUITE 500, SAN FRANCISCO CA 94158
Ponoi Ii Management, Llc	10 percent owner	1 LETTERMAN DRIVE, BUILDING D, SUITE M-900, SAN FRANCISCO CA 94129
Ponoi Capital Ii, Lp	10 percent owner	1700 OWENS STREET, STE 500, SAN FRANCISCO CA 94158
Column Group Gp, Lp	10 percent owner	1700 OWENS STREET, SUITE 500, SAN FRANCISCO CA 94158
Column Group L P	10 percent owner	1700 OWENS STREET, SUITE 500, SAN FRANCISCO CA 94158
Ponoi Management, Llc	10 percent owner	1 LETTERMAN DRIVE, BUILDING D, SUITE M-900, SAN FRANCISCO CA 94129