What is Mustang Bio 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, Mustang Bio's Probability of Financial Distress (%) is 93.77%.
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 Mustang Bio's Probability of Financial Distress (%)
For the Biotechnology subindustry, Mustang Bio'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.
Mustang Bio's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Mustang Bio's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Mustang Bio's Probability of Financial Distress (%) falls into.
Mustang Bio 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 |
| = | 2.71 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 93.77% |
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).
Mustang Bio (Mustang Bio) Business Description
Traded in Other Exchanges
N/A
Address
377 Plantation Street, Worcester, MA, USA, 01605
Mustang Bio Inc is a clinical-stage biopharmaceutical company focused on translating today's medical breakthroughs in cell and gene therapy into potential cures for hematologic cancers, solid tumors and rare genetic diseases. Its pipeline is currently focused on the core areas of gene therapies for rare genetic disorders, chimeric antigen receptor (CAR) engineered T cell (CAR T) therapies for hematologic malignancies and CAR T therapies for solid tumors.
Executives
| Fortress Biotech, Inc. |
10 percent owner |
1111 KANE CONCOURSE, SUITE 301, BAY HARBOR ISLANDS FL 33154 |
| Rosenwald Lindsay A Md |
director |
375 PARK AVE, NEW YORK NY 10152 |
| Manuel Md Litchman |
director, officer: President and CEO |
2 GANSEVOORT STREET, 9TH FLOOR, NEW YORK NY 10017 |
| Eliot M Lurier |
officer: Interim CFO |
C/O TENAX THERAPEUTICS, INC., ONE COPLEY PARKWAY, SUITE 490, MORRISVILLE NC 27560 |
| Brian Achenbach |
officer: SVP, Fin. & Corp. Controller |
2 GANSEVOORT STREET, 9TH FLOOR, NEW YORK NY 10014 |
| Neil Herskowitz |
director |
2109 BROADWAY, SUITE 206, NEW YORK NY 10023 |
| Adam J. Chill |
director |
24 NEW ENGLAND EXECUTIVE PARK, SUITE 105, BURLINGTON MA 01803 |
| Michael S Weiss |
director |
750 LEXINGTON AVE, NEW YORK NY 10022 |
| Michael J Zelefsky |
director |
|
| David J Horin |
officer: Interim CFO |
1270 AVENUE OF THE AMERICAS, 16TH FLOOR, NEW YORK NY 10020 |
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