What is Anavex Life Sciences 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, Anavex Life Sciences's Probability of Financial Distress (%) is 0.03%.
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 Anavex Life Sciences's Probability of Financial Distress (%)
For the Biotechnology subindustry, Anavex Life Sciences'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.
Anavex Life Sciences's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Anavex Life Sciences's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Anavex Life Sciences's Probability of Financial Distress (%) falls into.
Anavex Life Sciences 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 |
| = | -7.97 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
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).
Anavex Life Sciences Business Description
Traded in Other Exchanges
Address
630 5th Avenue, 20th Floor, New York, NY, USA, 10111
Anavex Life Sciences Corp is a clinical-stage biopharmaceutical company engaged in the development of differentiated therapeutics by applying precision medicine to central nervous system diseases with high unmet need. It analyzes genomic data from clinical studies to identify biomarkers, which are used to select patients that will receive the therapeutic benefit for the treatment of neurodegenerative and neurodevelopmental diseases. Its necessary compound ANAVEX 2-73 is being developed to treat Alzheimer's disease, Parkinson's disease, and potentially other central nervous system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder. The company's operating segment is into developing novel therapies for the management of CNS diseases.
Executives
| Donhauser Peter D.o. |
director |
REGINA-KIRCHMAIER STRASSE 4, KAUFBEUREN 2M 87600 |
| Steffen Thomas |
director |
FALLMERAYER STR. 19, MUNICH 2M 80796 |
| Christopher U Missling |
director, officer: President, CEO, CFO, Treasurer, other: Secretary |
61 MOULTON ST, CAMBRIDGE MA 02138 |
| Athanasios Skarpelos |
10 percent owner |
14,RUE KLEBERG, GENEVA V8 CH-1201 |
| Jiong Ma |
director |
445 PARK AVENUE, 9TH FLOOR, NEW YORK NY 10022 |
| Elliot Favus |
director |
51 W 52ND STREET, 7TH FLOOR, NEW YORK NY 10091 |
| Sandra Boenisch |
officer: PFO & Treasurer |
51 WEST 52ND STREET, 7TH FLOOR, NEW YORK NY 10019 |
| Claus Vander Velden |
director |
PO BOX MUENSTEREIFELER ST., COLOGNE 2M 50937 |
| Bernd Metzner |
director |
51 W 52ND STREET, 7TH FLOOR, NEW YORK NY 10019 |
| George F Tidmarsh |
director, officer: Executive Director |
|
| John Robert Chisholm |
director |
16308 36A AVENUE, SURREY A1 V3S 0X5 |
| William Sean Lowry |
director |
1172 BAY STREET, SUITE 300, ONTARIO Z4 M5S1L9 |
| David L. Tousley |
director |
14610 PAWNEE LANE, LEAWOOD KS 66224 |
| Harvey Lalach |
director, officer: President CEO CFO |
4837 CANYON RIDGE CRESENT, KELOWNA A1 V1W 4A1 |
| Alison E. Ayers |
director |
27 O'CONNOR CIRCLE, WEST ORANGE NJ 07052 |
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