What is Acer 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, Acer Therapeutics's Probability of Financial Distress (%) is 6.20%.
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 Acer Therapeutics's Probability of Financial Distress (%)
For the Biotechnology subindustry, Acer 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.
Acer Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Acer Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Acer Therapeutics's Probability of Financial Distress (%) falls into.
Acer 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 |
| = | -2.72 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 6.20% |
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).
Acer Therapeutics (Acer Therapeutics) Business Description
Traded in Other Exchanges
N/A
Address
300 Washington Street, One Gateway Center, Suite 351, Newton, MA, USA, 02458
Acer Therapeutics Inc operates as a pharmaceutical company. Principally, it is focused on the acquisition, development, and commercialization of therapies for patients with serious rare and ultra-rare diseases with a critical unmet medical need. The company's clinical pipeline includes three categories of severe genetic disorders namely EDSIVO for vEDS, and ACER-001 for urea cycle disorders and maple syrup urine disease.
Executives
| Chris Schelling |
director, officer: President and Chief Executive |
C/O ACER THERAPEUTICS INC., 222 THIRD STREET, CAMBRIDGE MA 02142 |
| Steve Aselage |
director |
6300 DUMBARTON CIRCLE, FREMONT CA 94555 |
| Tanya Hayden |
officer: Chief Operating Officer |
300 WASHINGTON STREET, ONE GATEWAY CENTER, SUITE 351, NEWTON MA 02458 |
| Adrian W Quartel |
officer: Chief Medical Officer |
300 WASHINGTON STREET, ONE GATEWAY CENTER, SUITE 351, NEWTON MA 02458 |
| Bernard H Paul |
officer: Chief People Officer |
300 WASHINGTON STREET, ONE GATEWAY CENTER, SUITE 351, NEWTON MA 02458 |
| Jefferson E Davis |
officer: Chief Business Officer |
300 WASHINGTON STREET, ONE GATEWAY CENTER, SUITE 351, NEWTON MA 02458 |
| John Michael Dunn |
director |
C/O VITAL THERAPIES, INC., 15010 AVENUE OF SCIENCE, SUITE 200, SAN DIEGO CA 92128 |
| Donald Joseph |
officer: Chief Legal Officer and Secy |
C/O KALOBIOS PHARMACEUTICALS, INC., 260 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080 |
| John Michael Klopp |
officer: Chief Technology Officer |
ONE GATEWAY CENTER, SUITE 351, 300 WASHINGTON STREET, NEWTON MA 02458 |
| Matthew Seibt |
officer: Chief Commercial Officer |
ONE GATEWAY CENTER, SUITE 351, 300 WASHINGTON STREET, NEWTON MA 02458 |
| Michelle Renee Griffin |
director |
19723 NE 65TH LANE, KIRKLAND WA 98033 |
| Harry S Palmin |
officer: Chief Opp. and Financial Offr |
C/O NOVELOS THERAPUETICS, INC., ONE GATEWAY CENTER,SUITE 504, NEWTON MA 02458 |
| William T. Andrews |
officer: Chief Medical Officer |
ONE MAIN STREET, SUITE 800, CAMBRIDGE MA 02142 |
| Jason Amello |
director |
500 KENDALL STREET, CAMBRIDGE MA 01824 |
| Salma Jutt-eghbali |
officer: Chief Commercial Officer |
ONE GATEWAY CENTER, SUITE 351, 300 WASHINGTON STREET, NEWTON MA 02458 |
Acer Therapeutics (Acer Therapeutics) Headlines
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