What is BG Medicine 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, BG Medicine's Probability of Financial Distress (%) is 0.00%.
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 BG Medicine's Probability of Financial Distress (%)
For the Medical Instruments & Supplies subindustry, BG Medicine'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.
BG Medicine's Probability of Financial Distress (%) Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, BG Medicine's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where BG Medicine's Probability of Financial Distress (%) falls into.
BG Medicine 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 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
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).
BG Medicine (BG Medicine) Business Description
Traded in Other Exchanges
N/A
Address
303 Wyman Street, Suite 300, Waltham, MA, USA, 02451
BG Medicine Inc manufacture and sell diagnostic products that are used to guide the patients suffering from heart failure and related disorders in the United States. It distributes its products such as BGM Galectin-3 Test, an in vitro diagnostic device that measures galectin-3 in serum or plasma by enzyme-linked immunosorbent assay on a microtiter plate platform; and CardioSCORE Test, a multi-analyte biomarker-based blood test used for the assessment of near-term risk of atherothrombotic cardiovascular events, such as heart attack and ischemic stroke.
Executives
| Jeffrey R Luber |
director |
100 CAMPUS DRIVE, C/O EXACT SCIENCES CORP, MARLBOROUGH MA 01752 |
| Noubar Afeyan |
director, 10 percent owner |
C/O FLAGSHIP PIONEERING, INC., 55 CAMBRIDGE PARKWAY, SUITE 800E, CAMBRIDGE MA 02142 |
| Stelios Papadopoulos |
director |
3 SOMERSET DRIVE SOUTH, GREAT NECK NY 11020 |
| Harry W Wilcox |
director |
ONE KENDALL SQ, BLDG 700, CAMBRIDGE MA 02139 |
| Agtc Partners, L.p. |
10 percent owner |
C/O FLAGSHIP VENTURES ONE MEMORIAL DRIVE, 7TH FLOOR CAMBRIDGE MA 02142 |
| Newcogen Group, Inc. |
10 percent owner |
C/O FLAGSHIP VENTURES ONE MEMORIAL DRIVE, 7TH FLOOR CAMBRIDGE MA 02142 |
| Applied Genomic Technology Capital Fund Lp |
10 percent owner |
C/O FLAGSHIP VENTURES ONE MEMORIAL DRIVE, 7TH FLOOR CAMBRIDGE MA 02142 |
| Flagship Pioneering Inc. |
10 percent owner |
55 CAMBRIDGE PARKWAY, SUITE 800E, CAMBRIDGE MA 02142 |
| Agtc Advisors Fund Lp |
10 percent owner |
ONE MEMORIAL DRIVE 7TH FLOOR CAMBRIDGE MA 02142 |
| Kania Edwin M Jr |
10 percent owner |
|
| Flagship Ventures Fund 2007, L.p. |
10 percent owner |
55 CAMBRIDGE PARKWAY, 8TH FLOOR, CAMBRIDGE MA 02142 |
| Flagship Ventures 2007 General Partner Llc |
10 percent owner |
55 CAMBRIDGE PARKWAY, SUITE 800E, CAMBRIDGE MA 02142 |
| Brian S Posner |
director |
14 CAMBRIDGE CENTER, CAMBRIDGE MA 02142 |
| Stephane Bancel |
director |
320 BENT STREET, CAMBRIDGE MA 02141 |
| Harris Timothy J.r. |
director |
C/O BG MEDICINE, 610 LINCOLN STREET NORTH, WALTHAM MA 02451 |
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