What is GRI 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, GRI Bio's Probability of Financial Distress (%) is 93.72%.
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 GRI Bio's Probability of Financial Distress (%)
For the Biotechnology subindustry, GRI 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.
GRI Bio's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, GRI Bio's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where GRI Bio's Probability of Financial Distress (%) falls into.
GRI 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 |
| = | 2.70 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 93.72% |
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).
GRI Bio (GRI Bio) Business Description
Traded in Other Exchanges
N/A
Address
2223 Avenida De La Playa, Suite 208, La Jolla, CA, USA, 92037
GRI Bio Inc is a clinical-stage biotech company focused on discovering, developing, and commercializing therapies targeting serious diseases associated with dysregulated immune responses that to inflammatory, fibrotic, and autoimmune disorders. GRI Bio's program, GRI-0621, is a small molecule RAR-beta and gamma dual agonist that inhibits the activity of human NKT I cells, returning the immune system to homeostasis.
Executives
| David Leslie Szekeres |
director |
C/O REGULUS THERAPEUTICS INC., 3545 JOHN HOPKINS COURT, SUITE 210, SAN DIEGO CA 92121 |
| Roelof Rongen |
director |
C/O MATINAS BIOPHARMA HOLDINGS, INC., 1545 ROUTE 206 SOUTH, SUITE 302, BEDMINSTER NJ 07921 |
| Camilla V Simpson |
director |
20 ELAINE AVE., MILL VALLEY CA 94941 |
| Albert Agro |
officer: Chief Medical Officer |
828 RICHMOND STREET WEST, TORONTO A6 M6J 1C9 |
| Walter Marc Hertz |
director, 10 percent owner, officer: Chief Executive Officer |
2223 AVIENDA DE LA PLAYA, SUITE 208, LA JOLLA CA 92037 |
| Vipin Chaturvedi |
officer: Chief Scientific Officer |
2223 AVIENDA DE LA PLAYA, SUITE 208, LA JOLLA CA 92037 |
| Meenu Chhabra |
director |
C/O VALLON PHARAMCEUTICALS, INC., 100 N 18TH, STREET, SUITE 300, PHILADELPHIA PA 19103 |
| Joseph E Payne |
director |
10628 SCIENCE CENTER DRIVE, SUITE 200, SAN DIEGO CA 92121 |
| Leanne M. Kelly |
officer: Chief Financial Officer |
C/O VALLON PHARAMCEUTICALS, INC., 100 N 18TH STREET, SUITE 300, PHILADELPHIA PA 19103 |
| Marella Thorell |
director |
1226 CHARTER LANE, AMBLER PA 19002 |
| Arcturus Therapeutics Holdings Inc. |
10 percent owner |
10628 SCIENCE CENTER DRIVE, SUITE 250, SAN DIEGO CA 92121 |
| Penny Toren |
officer: SVP, Regul Affairs & Prog Mgmt |
C/O VALLON PHARMACEUTICALS, INC., 100 N. 18TH STREET, SUITE 300, PHILADELPHIA PA 19103 |
| Ofir Levi |
director |
C/O VALLON PHARMACEUTICALS, INC., 100 N. 18TH STREET, SUITE 300, PHILADELPHIA PA 19103 |
| Richard Ammer |
director, 10 percent owner |
C/O VALLON PHARMACEUTICALS, INC., 100 N. 18TH STREET, SUITE 300, PHILADELPHIA PA 19103 |
| Pharma Gmbh Salmon |
10 percent owner |
SANKT-JACOBS-STRASSE 90, CH-9002, BASEL V8 4052 |
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