What is Beam 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, Beam Therapeutics's Probability of Financial Distress (%) is 0.03%.
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 Beam Therapeutics's Probability of Financial Distress (%)
For the Biotechnology subindustry, Beam 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.
Beam Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Beam Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Beam Therapeutics's Probability of Financial Distress (%) falls into.
Beam 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 |
| = | -8.01 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
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).
Beam Therapeutics (Beam Therapeutics) Business Description
Traded in Other Exchanges
Address
238 Main Street, Cambridge, MA, USA, 02142
Beam Therapeutics Inc is a biotechnology company engaged in creating genetic medicines based on its base editing technology. This technology enables a new class of genetic medicines that targets a single base in the genome without making a double-stranded break in the DNA. The company's portfolio comprises Gene Correction, Gene Modification, Gene Activation, Gene Silencing, and Multiplex Editing.
Executives
| Christine Bellon |
officer: Chief Legal Officer |
BEAM THERAPEUTICS, INC., 238 MAIN STREET, 9TH FL., CAMBRIDGE MA 02142 |
| Amy Simon |
officer: Chief Medical Officer |
BEAM THERAPEUTICS, INC., 238 MAIN STREET, 9TH FL., CAMBRIDGE MA 02142 |
| Giuseppe Ciaramella |
officer: President & CSO |
C/O BEAM THERAPEUTICS INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139 |
| John M. Evans |
director, officer: CEO |
C/O BEAM THERAPEUTICS INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139 |
| Terry-ann Burrell |
officer: CFO |
C/O BEAM THERAPEUTICS INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139 |
| Fmr Llc |
10 percent owner, other: See Remark 1 |
245 SUMMER STREET, BOSTON MA 02210 |
| John Maraganore |
director |
75 SIDNEY ST, CAMBRIDGE MA 02139 |
| Graham K Cooper |
director |
C/O RECEPTOS, INC., 10835 ROAD TO THE CURE, SUITE 205, SAN DIEGO CA 92121 |
| Kathleen E Walsh |
director |
C/O LIFEMD, INC., 236 FIFTH AVENUE, SUITE 400, NEW YORK NY 10001 |
| Arch Venture Fund Ix Overage, L.p. |
10 percent owner |
8725 W. HIGGINS ROAD, SUITE 290, CHICAGO IL 60631 |
| Stephen C Knight |
director |
C/O EPIX MEDICAL INC, 71 ROGERS ST, CAMBRIDGE MA 02142 |
| Mark Fishman |
director |
C/O BEAM THERAPEUTICS INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139 |
| Arch Venture Partners Ix, Llc |
10 percent owner |
8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631 |
| Arch Venture Partners Ix, L.p. |
10 percent owner |
8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631 |
| Arch Venture Partners Ix Overage, L.p. |
10 percent owner |
8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631 |
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