What is Enzon Pharmaceuticals 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, Enzon Pharmaceuticals's Probability of Financial Distress (%) is 0.23%.
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 Enzon Pharmaceuticals's Probability of Financial Distress (%)
For the Biotechnology subindustry, Enzon Pharmaceuticals'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.
Enzon Pharmaceuticals's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Enzon Pharmaceuticals's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Enzon Pharmaceuticals's Probability of Financial Distress (%) falls into.
Enzon Pharmaceuticals 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 |
| = | -6.07 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.23% |
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).
Enzon Pharmaceuticals (Enzon Pharmaceuticals) Business Description
Traded in Other Exchanges
Address
20 Commerce Drive, Suite 135, Cranford, NJ, USA, 07016
Enzon Pharmaceuticals, Inc. is a biopharmaceutical company. It engages in the provision of licensing arrangements related to sales of drug products that utilize its proprietary technology. The company earns revenue in the form of royalties. Primary source of royalty revenues derived from the sales of PegIntron, which is marketed by Merck.
Executives
| Randolph C Read |
director |
C/O NEW YORK REIT, INC., 405 PARK AVENUE, NEW YORK NY 10022 |
| Jaffrey Adam Firestone |
director |
C/O CVR ENERGY, INC., 2277 PLAZA DRIVE, SUITE 500, SUGAR LAND TX 77479 |
| Family Fund Couchman |
other: See Footnote 1 |
630 FIFTH AVENUE, SUITE 2260, NEW YORK NY 10020 |
| Jordan Bleznick |
director |
C/O ENZON PHANNACEUTICALS, INC., 120 COMMERCE DRIVE (SUITE 135), CRANFORD NJ 07016 |
| Pearce Michael Cooper |
other: See explanation of responses |
213 RHODODENDRON DRIVE, CHAPEL HILL NC 27517 |
| Harper Asset Management Llc |
other: See explanation of responses |
2945 S CENTER GREEN CT, G215, BOULDER CO 80301 |
| Brian James Harper |
other: See explanation of responses |
6680 GUNPARK DRIVE, SUITE 202B, BOULDER CO 80301 |
| Myrexis, Inc. |
other: See Footnote 1 |
600 FIFTH AVENUE, 2ND FLOOR, NEW YORK NY 10020 |
| Xstelos Corp. |
other: See Footnote 1 |
630 FIFTH AVENUE, SUITE 2260, NEW YORK NY 10020 |
| Jonathan Couchman |
10 percent owner, other: See Footnote 1 |
630 FIFTH AVENUE, SUITE 2260, NEW YORK NY 10020 |
| Carl C Icahn |
10 percent owner |
C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160 |
| Richard L Feinstein |
officer: VP-Finance and PFO |
|
| Jonathan Christodoro |
director |
C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160 |
| Kostas D Odysseas |
director |
660 STEAMBOAT ROAD, 3RD FLOOR, GREENWICH CT 06830 |
| Jennifer Isacoff Mcnealey |
director |
C/O CODEX DNA, INC., 9535 WAPLES STREET, SUITE 100, SAN DIEGO Z4 92121 |
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