What is Cyclerion 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, Cyclerion Therapeutics's Probability of Financial Distress (%) is 0.07%.
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 Cyclerion Therapeutics's Probability of Financial Distress (%)
For the Biotechnology subindustry, Cyclerion 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.
Cyclerion Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Cyclerion Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Cyclerion Therapeutics's Probability of Financial Distress (%) falls into.
Cyclerion 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 |
| = | -7.28 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.07% |
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).
Cyclerion Therapeutics (Cyclerion Therapeutics) Business Description
Traded in Other Exchanges
N/A
Address
245 First Street, 18th Floor, Cambridge, MA, USA, 02142
Cyclerion Therapeutics Inc is a clinical-stage biopharmaceutical company harnessing the power of soluble guanylate cyclase (sGC) pharmacology to discover, develop and commercialize breakthrough treatments for serious and orphan diseases. Its focus is on enabling the full therapeutic potential of next-generation sGC stimulators. Its pipeline products include Olinciguat, Praliciguat, and others.
Executives
| Terrance Mcguire |
director |
C/O POLARIS VENTURE PARTNERS LP, 1000 WINTER STREET, SUITE 3350, WALTHAM MA 02154 |
| Steven Hyman |
director |
C/O VOYAGER THERAPEUTICS, INC., 75 SIDNEY STREET, CAMBRIDGE MA 02139 |
| Andreas Busch |
officer: Chief Scientific Officer |
C/O CYCLERION THERAPEUTICS, INC., 301 BINNEY STREET, CAMBRIDGE MA 02142 |
| George H Conrades |
director |
500 TECHNOLOGY SQUARE, FIFTH FLOOR, CAMBRIDGE MA 02139 |
| Stephanie Lovell |
director |
C/O CYCLERION THERAPEUTICS, INC., 301 BINNEY STREET, CAMBRIDGE MA 02142 |
| Ole Isacson |
director |
CYCLERION THERAPEUTICS, INC., 301 BINNEY STREET, CAMBRIDGE MA 02142 |
| Kevin Churchwell |
director |
C/O CYCLERION THERAPEUTICS, CAMBRIDGE MA 02142 |
| Michael Mendelsohn |
director |
C/O CYCLERION THERAPEUTICS, INC., 301 BINNEY STREET, CAMBRIDGE MA 02142 |
| Peter M Hecht |
director, officer: Chief Executive Officer |
C/O CYCLERION THERAPEUTICS, INC., 301 BINNEY STREET, CAMBRIDGE MA 02142 |
| Slate Path Capital Lp |
10 percent owner |
717 5TH AVENUE, 16TH FL., NEW YORK NY 10022 |
| Errol B Desouza |
director |
215 COLLEGE ROAD, PARAMUS NJ 07652 |
| Anjeza Gjino |
officer: Chief Financial Officer |
C/O CYCLERION THERAPEUTICS, INC., 245 FIRST STREET, 18TH FLOOR, CAMBRIDGE MA 02142 |
| Christopher I Wright |
officer: Chief Medical Officer |
C/O CYCLERION THERAPEUTICS, INC., 245 FIRST STREET, 18TH FLOOR, CAMBRIDGE MA 02142 |
| Cheryl Gault |
officer: Chief Operating Officer |
CYCLERION THERAPEUTICS, INC., 245 FIRST STREET, 18TH FLOOR, CAMBRIDGE MA 02142 |
| Mark G Currie |
officer: President and CSO |
C/O CYCLERION THERAPEUTICS, INC., 301 BINNEY STREET, CAMBRIDGE MA 02142 |
Cyclerion Therapeutics (Cyclerion Therapeutics) Headlines
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