What is ProPhase Labs 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, ProPhase Labs's Probability of Financial Distress (%) is 0.26%.
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 ProPhase Labs's Probability of Financial Distress (%)
For the Diagnostics & Research subindustry, ProPhase Labs'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.
ProPhase Labs's Probability of Financial Distress (%) Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, ProPhase Labs's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where ProPhase Labs's Probability of Financial Distress (%) falls into.
ProPhase Labs 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 |
| = | -5.96 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.26% |
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).
ProPhase Labs (ProPhase Labs) Business Description
Traded in Other Exchanges
N/A
Address
711 Stewart Avenue, Suite 200, Garden City, NY, USA, 11530
ProPhase Labs Inc is a diversified company that offers a range of services including diagnostic testing, genomics testing and contract manufacturing. Its operating segments include Diagnostic services and Consumer products. The Diagnostic services segment provides COVID-19 diagnostic information services to a broad range of customers in the United States, including health plans, third-party payers and government organizations. The Consumer products segment is engaged in the research, development, manufacture, distribution, marketing and sale of OTC consumer healthcare products and dietary supplements in the United States and also provide personal genomics products and services.
Executives
| Morse Robert A. Jr. |
officer: Controller |
711 STEWART AVENUE, SUITE 200, GARDEN CITY NY 11530 |
| Billy Joe White |
officer: Chief Financial Officer |
191 OTTO ST., PORT TOWNSEND WA 98368 |
| Jason Michael Barr |
director |
902 BROADWAY, 15TH FLOOR, NEW YORK NY 10010 |
| Louis Md Gleckel |
10 percent owner |
C/O PROHEALTH CARE ASSOCIATES LLP, 2800 METRUS AVE, LAKE SUCCESS NY 11042 |
| Ted William Karkus |
10 percent owner |
188 HEWLETT NECK ROAD, WOODMERE NY 11598 |
| Warren Hirsch |
director |
621 N. SHADY RETREAT ROAD, DOYLESTOWN PA 18901 |
| Monica L. Brady |
officer: Chief Accounting Officer |
621 N. SHADY RETREAT ROAD, DOYLESTOWN PA 18901 |
| Cuddihy Robert V Jr |
officer: Chief Operating Officer |
PARKER DURYEE ET AL, 529 FIFTH AVE 8TH FL, NEW YORK NY 10017 |
| Braden Michael Leonard |
10 percent owner |
156 S. FIRST STREET, ZIONSVILLE IN 46077 |
| Mark S Leventhal |
10 percent owner |
THE BEACON COMPANIES, 50 FEDERAL STREET, BOSTON MA 02468 |
| Mark Shawn Frank |
director |
104 WHISPER WOOD COURT, WRIGHTSTOWN PA 18940 |
| James T Mccubbin |
director |
|
| Mark A. Burnett |
10 percent owner |
40 HEMLOCK DRIVE, ROSLYN NY 11576 |
| Guy J Quigley |
director, 10 percent owner, officer: Chairman, President, CEO |
C/O THE QUIGLEY CORP KELLS BUILDINGS, 621 SHADY RETREAT RD P O BOX 1349, DOYLESTOWN PA 18901 |
| John Deshazo |
10 percent owner |
17 WOLCOTT COURT, BOSTON MA 02136 |
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