What is Forty Seven 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, Forty Seven's Probability of Financial Distress (%) is 0.00%.
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 Forty Seven's Probability of Financial Distress (%)
For the Biotechnology subindustry, Forty Seven'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.
Forty Seven's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Forty Seven's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Forty Seven's Probability of Financial Distress (%) falls into.
Forty Seven 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 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
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).
Forty Seven (Forty Seven) Business Description
Traded in Other Exchanges
N/A
Address
1490 O’Brien Drive, Suite A, Menlo Park, CA, USA, 94025
Forty Seven Inc is a clinical-stage immuno-oncology company. It is engaged in developing novel checkpoint therapies to activate macrophages and help the patients in their fight against cancer. It founded that blocking CD47, a key signaling molecule that is overexpressed on cancer cells renders tumors susceptible to macrophages. It is also preparing investigational compounds into clinical testing. FSI-174, an anti-cKIT antibody, is being developed in combination with magrolimab as a novel, all-antibody conditioning regimen to address the limitations of current stem cell transplantation conditioning regimens. FSI-189, an anti-SIRP-alpha antibody, is being developed for the treatment of cancer, and certain non-oncology conditions, including transplantation conditioning.
Executives
| Dennis Henner |
director |
THE JOHN HANCOCK TOWER, 200 CLARENDON STREET, 54TH FLOOR, BOSTON MA 02116 |
| Kristine M Ball |
director |
C/O RELYPSA, INC., 700 SAGINAW DRIVE, REDWOOD CITY CA 94063 |
| Ann D Rhoads |
officer: Chief Financial Officer |
4000 NORTH FIRST STREET, SAN JOSE CA 95134 |
| Ian T Clark |
director |
SOLAZYME, INC., 225 GATEWAY BLVD., SOUTH SAN FRANCISCO CA 94080 |
| Jeffrey W Bird |
director |
755 PAGE MILL RD STE A-200, PALO ALTO CA 94304-1005 |
| Lightspeed General Partner X, L.p. |
10 percent owner |
2200 SAND HILL ROAD, MENLO PARK CA 94025 |
| Lightspeed Ultimate General Partner X, Ltd. |
10 percent owner |
2200 SAND HILL ROAD, MENLO PARK CA 94025 |
| Jeremy Liew |
10 percent owner |
2200 SAND HILL ROAD, MENLO PARK CA 94025 |
| Lightspeed Venture Partners X, L.p. |
10 percent owner |
2200 SAND HILL ROAD, MENLO PARK CA 94025 |
| Barry Eggers |
10 percent owner |
2200 SAND HILL ROAD, MENLO PARK CA 94025 |
| Peter Nieh |
10 percent owner |
2200 SAND HILL ROAD, MENLO PARK CA 94025 |
| Ravi Mhatre |
10 percent owner |
2200 SAND HILL ROAD, MENLO PARK CA 94025 |
| Stephen A Schwarzman |
10 percent owner |
C/O BLACKSTONE INC., 345 PARK AVE, NEW YORK NY 10154 |
| Blackstone Clarus Iii L.l.c. |
10 percent owner |
C/O THE BLACKSTONE GROUP L.P., 345 PARK AVENUE, NEW YORK NY 10154 |
| Blackstone Inc. |
10 percent owner |
345 PARK AVENUE, NEW YORK NY 10154 |
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