What is Soleno 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, Soleno Therapeutics's Probability of Financial Distress (%) is 0.04%.
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 Soleno Therapeutics's Probability of Financial Distress (%)
For the Biotechnology subindustry, Soleno 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.
Soleno Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Soleno Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Soleno Therapeutics's Probability of Financial Distress (%) falls into.
Soleno 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 |
| = | -7.83 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.04% |
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).
Soleno Therapeutics (Soleno Therapeutics) Business Description
Traded in Other Exchanges
Address
203 Redwood Shores Parkway, Suite 500, Redwood City, CA, USA, 94065
Soleno Therapeutics Inc is focused on the development and commercialization of novel therapeutics for the treatment of rare diseases. Its product candidates comprise Diazoxide Choline Controlled-Release tablets, which is an oral tablet for the treatment of Prader-Willi Syndrome.
Executives
| Patricia C Hirano |
officer: See Remarks |
1235 RADIO ROAD, SUITE 110, REDWOOD CITY CA 94065 |
| Kristen Yen |
officer: See Remarks |
3 TWIN DOLPHIN DRIVE, SUITE 160, REDWOOD CITY CA 94065 |
| Bhatnagar Anish |
director, officer: See Remarks |
3 TWIN DOLPHIN DRIVE, SUITE 160, REDWOOD CITY CA 94065 |
| James H Mackaness |
officer: Chief Financial Officer |
1212 TERRA BELLA AVENUE, MOUNTAIN VIEW CA 94043 |
| Vivo Opportunity Fund Holdings, L.p. |
10 percent owner |
192 LYTTON AVENUE, PALO ALTO CA 94301 |
| Vivo Opportunity, Llc |
10 percent owner |
192 LYTTON AVENUE, PALO ALTO CA 94301 |
| Abingworth Bioventures Vii Lp |
10 percent owner |
PRINCES HOUSE, 38 JERMYN STREET, LONDON X0 SW1Y 6DN |
| Perceptive Life Sciences Master Fund Ltd |
10 percent owner |
C/O PERCEPTIVE ADVISORS LLC, 51 ASTOR PLACE, 10TH FLOOR, NEW YORK NY 10003 |
| Matthew Pauls |
director |
9 DEER PARK DRIVE, SUITE C, MONMOUTH JUNCTION NJ 08852 |
| Joseph Edelman |
10 percent owner |
C/O PERCEPTIVE ADVISORS LLC, 51 ASTOR PLACE, 10TH FLOOR, NEW YORK NY 10003 |
| Perceptive Advisors Llc |
10 percent owner |
51 ASTOR PLACE, 10TH FLOOR, NEW YORK NY 10003 |
| Llp Abingworth |
10 percent owner |
38 JERMYN STREET, LONDON X0 SW1Y 6DN |
| Jack W Schuler |
10 percent owner |
100 N. FIELD DRIVE, SUITE 360, LAKE FOREST IL 60045 |
| Carlyle Holdings I L.p. |
10 percent owner |
C/O THE CARLYLE GROUP L.P., 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505 |
| Carlyle Holdings I Gp Sub L.l.c. |
10 percent owner |
C/O THE CARLYLE GROUP L.P., 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505 |
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