What is Fulgent Genetics 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, Fulgent Genetics's Probability of Financial Distress (%) is 0.06%.
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 Fulgent Genetics's Probability of Financial Distress (%)
For the Diagnostics & Research subindustry, Fulgent Genetics'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.
Fulgent Genetics's Probability of Financial Distress (%) Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Fulgent Genetics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Fulgent Genetics's Probability of Financial Distress (%) falls into.
Fulgent Genetics 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 |
| = | -7.46 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.06% |
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).
Fulgent Genetics (Fulgent Genetics) Business Description
Traded in Other Exchanges
Address
4978 Santa Anita Avenue, Temple City, CA, USA, 91780
Fulgent Genetics Inc is a technology company that focuses on genetic testing to provide physicians with clinically actionable diagnostic information. Genetic testing offers the possibility of early identification of a disease or a genetic predisposition to disease and enhanced disease treatment and prognosis. Fulgent's product portfolio includes Genes & Panels, Known Mutation, Genomic Testing, Hereditary Cancer, Carrier Screening, Tumor Profiling, and Sequencing Service. Its customers are categorized as Insurance; Institutional, which includes hospitals, medical institutions, laboratories, governmental bodies, municipalities, and large corporations; and Patients. The geographical segments are the United States, which generates the vast majority of the revenue; and Foreign.
Executives
| Jian Xie |
officer: Chief Operating Officer |
C/O FULGENT GENETICS, INC., 4399 SANTA ANITA AVE, EL MONTE CA 91731 |
| Hanlin Gao |
10 percent owner, officer: Chief Scientific Officer |
4399 SANTA ANITA AVE., EL MONTE CA 91731 |
| Paul Kim |
officer: CFO and Treasurer |
4399 SANTA ANITA AVE, EL MONTE CA 91731 |
| Regina E Groves |
director |
5751 COPLEY DRIVE, SAN DIEGO CA 92111 |
| Leonard E Post |
director |
|
| Michael Nohaile |
director |
C/O BIO AI ACCELERATION COMPANY, 20 UNIVERSITY AVENUE, CAMBRIDGE MA 02138 |
| John C Bolger |
director |
4978 SANTA ANITA AVENUE, SUITE 205, TEMPLE CITY CA 91780 |
| Ming Hsieh Trust |
10 percent owner |
4399 SANTA ANITA AVE., EL MONTE CA 91731 |
| Linda Marsh |
director |
100 N. STONEMAN AVE., ROOM 200, ALHAMBRA CA 91801 |
| Ming Hsieh |
director, 10 percent owner, officer: President and CEO |
4399 SANTA ANITA AVE., EL MONTE CA 91731 |
| Fulgent Genetics, Inc. |
director |
4399 SANTA ANITA AVE, EL MONTE CA 91731 |
| Yun Yen |
director |
1301 OAKLAWN ROAD, ARCADIA CA 91006 |
| James Mulay |
director |
6521 THOROUGHBRED LOOP, ODESSA FL 33556 |
| Xi Long Usa, Inc. |
10 percent owner |
#6 XINRUI RD., SCIENCE CITY, LUOGANG DISTRICT, GUANGZHOU CITY F4 510663 |
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