What is Eloxx Pharmaceuticals 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, Eloxx Pharmaceuticals's Probability of Financial Distress (%) is 5.59%.
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 Eloxx Pharmaceuticals's Probability of Financial Distress (%)
For the Biotechnology subindustry, Eloxx Pharmaceuticals'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.
Eloxx Pharmaceuticals's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Eloxx Pharmaceuticals's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Eloxx Pharmaceuticals's Probability of Financial Distress (%) falls into.
Eloxx Pharmaceuticals 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 |
| = | -2.83 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 5.59% |
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).
Eloxx Pharmaceuticals (Eloxx Pharmaceuticals) Business Description
Traded in Other Exchanges
N/A
Address
480 Arsenal Way, Watertown, MA, USA, 02472
Eloxx Pharmaceuticals Inc is a clinical-stage biopharmaceutical company engaged in the science of ribosome modulation, leveraging both its ZM chemistry technology platform and its library of novel aminoglycosides to develop novel oral small molecule Ribosome Modulating Agents (RMAs) and Eukaryotic Ribosome Selective Glycosides (ERSGs), for the treatment of rare and ultra-rare genetic diseases where patients have point nonsense genetic mutations that result in premature stop codons and less than full-length proteins. The ELX-02, the company's investigational drug product candidate, is a small molecule designed to restore the production of full-length functional proteins.
Executives
| Sumit Aggarwal |
director, officer: PRESIDENT AND CEO |
480 ARSENAL WAY, WATERTOWN MA 02472 |
| Vijay Modur |
officer: HEAD OF R&D |
C/O ELOXX PHARMACEUTICALS, INC., 950 WINTER ST., WALTHAM MA 02451 |
| Lindsay Androski |
director |
C/O ELOXX PHARMACEUTICALS, INC., 480 ARSENAL WAY, WATERTOWN MA 02472 |
| Gadi Veinrib |
director |
12 MIKHA'EL NE'EMAN ST, TEL AVIV-YAFO L3 6958101 |
| Steven D Rubin |
director |
OPKO HEALTH, INC., 4400 BISCAYNE BLVD., MIAMI FL 33137 |
| Jasbir Seehra |
director |
C/O ELOXX PHARMACEUTICALS, INC., 950 WINTER STREET, WALTHAM MA 02451 |
| Zafrira Avnur |
director |
210 ALLANDALE ST #1B, CHESTNUT HILL MA 02467 |
| Alan Edmund Walts |
director |
197 8TH STREET, APARTMENT 804, CHARLESTOWN MA 02129 |
| Daniel E. Geffken |
officer: Chief Financial Officer |
DAMONMILL SQUARE, SUITE 6A, CONCORD MA 01742 |
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| Ran Nussbaum |
director |
C/O KITE PHARMA, INC., 2225 COLORADO AVENUE, SANTA MONICA CA 90404 |
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