What is Vycor Medical 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, Vycor Medical's Probability of Financial Distress (%) is 0.17%.
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 Vycor Medical's Probability of Financial Distress (%)
For the Medical Devices subindustry, Vycor Medical'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.
Vycor Medical's Probability of Financial Distress (%) Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Vycor Medical's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Vycor Medical's Probability of Financial Distress (%) falls into.
Vycor Medical 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 |
| = | -6.39 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.17% |
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).
Vycor Medical (Vycor Medical) Business Description
Traded in Other Exchanges
N/A
Address
951 Broken Sound Boulevard, Suite 320, Boca Raton, FL, USA, 33487
Vycor Medical Inc is engaged in designing, developing and marketing medical devices for use in neurosurgery in the United States. It has developed ViewSite Brain Access System, which helps to reduce brain tissue trauma that arises from excessive pressure at the edges of the blade. It also provides non-invasive rehabilitation therapies for patients having disorders resulting from neurological brain damage caused by a stroke. The company operates through two segments: Vycor Medical, which focuses on devices for neurosurgery; and NovaVision, which focuses on neurostimulation therapies and diagnostic devices for the treatment and screening of visual field loss. The majority of the revenue comes from the Vycor Medical segment in the United States.
Executives
| David Cantor |
director, officer: President |
1 PORTMAN HOUSE HUE STREET, ST HELIER, JERSEY CHANNEL ISLANDS X0 00000 |
| Adrian Liddell |
director, officer: Chairman |
ROSEMOUNT, LYNCOMBE VALE ROAD, BATH HI BA2 4LP |
| Peter C Zachariou |
director, 10 percent owner, officer: Chief Executive Officer |
C/O QUE MANAGEMENT INC, 180 VENICK 13RH FL, NEW YORK NY 10014 |
| Lowell Rush |
director |
C/O DIRECT INSITE CORP., 500 EAST BROWARD BOULEVARD, SUITE 1550, FORT LAUDERDALE FL 33394 |
| Oscar Bronsther |
director |
4 AUTUMNWOOD COURT, THE WOODLANDS TX 77380 |
| Steven Girgenti |
director |
C/O HEALTHWORLD CORP, 100 AVENUE OF THE AMERICAS, NEW YORK NY 10013 |
| Fountainhead Capital Management Ltd |
10 percent owner |
PORTMAN HOUSE HUE STREET, ST HELIER, JERSEY CHANNEL ISLANDS X0 JE45RP |
Vycor Medical (Vycor Medical) Headlines
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