What is abrdn Life Sciences Investors 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, abrdn Life Sciences Investors'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 abrdn Life Sciences Investors's Probability of Financial Distress (%)
For the Asset Management subindustry, abrdn Life Sciences Investors'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.
abrdn Life Sciences Investors's Probability of Financial Distress (%) Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, abrdn Life Sciences Investors's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where abrdn Life Sciences Investors's Probability of Financial Distress (%) falls into.
abrdn Life Sciences Investors 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 |
| = | -9.93 |
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 banks, 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).
abrdn Life Sciences Investors (abrdn Life Sciences Investors) Business Description
Traded in Other Exchanges
N/A
Address
1900 Market Street, Suite 200, Philadelphia, PA, USA, 19103
abrdn Life Sciences Investors operates as a non-diversified closed-end management investment company. Its investment objective is to seek long-term capital appreciation by investing primarily in securities of Life Sciences companies. It invests in securities of public and private companies that are believed by the Fund's Investment Adviser, abrdn Inc to have significant potential for above-average growth.
Executives
| Todd Reit |
director |
C/O ABERDEEN STANDARD INVESTMENTS, 1900 MARKET STREET, SUITE 200, PHILADELPHIA PA 19103 |
| Bill Maher |
director |
600 WEST BROADWAY, 30TH FL., SAN DIEGO CA 92101 |
| Rose Dimartino |
director |
C/O ABRDN, 1900 MARKET STREET, PHILADELPHIA PA 19103 |
| James Joseph O'connor |
other: Director of Adviser |
C/O ABERDEEN STANDARD INVESTMENTS, 1900 MARKET STREET, SUITE 200, PHILADELPHIA PA 19103 |
| Marika Tooze |
other: Director of Adviser |
C/O ABRDN, 1900 MARKET STREET, SUITE 200, PHILADELPHIA PA 19103 |
| Aberdeen Standard Investments Inc. |
other: Adviser |
1900 MARKET ST., 2ND FLOOR, PHILADELPHIA PA 19103 |
| Jaclyn Marie Matsick |
other: Director of Adviser |
C/O ABRDN, 1900 MARKET STREET, SUITE 200, PHILADELPHIA PA 19103 |
| Lucia Sitar |
officer: VP and Chief Legal Officer |
1735 MARKET STREET, 32ND FLOOR, PHILADELPHIA PA 19103 |
| Jennifer A Nichols |
other: Director of Adviser |
1735 MARKET STREET, 37TH FLOOR, PHILADELPHIA PA 19103 |
| Christian Pittard |
officer: President |
ONE BOW CHURCHYARD, LONDON X0 EC4M 9HH |
| Megan Kennedy |
officer: Secretary and Vice President |
1735 MARKET STREET, 32ND FLOOR, PHILADELPHIA PA 19103 |
| Sharon Ferrari |
officer: Treasurer and CFO |
1735 MARKET STREET, 32ND FLOOR, PHILADELPHIA PA 19103 |
| Alan R Goodson |
officer: Vice President |
1735 MARKET STREET, 32ND FLOOR, PHILADELPHIA PA 19103 |
| Joseph Andolina |
officer: Chief Compliance Officer & VP |
1735 MARKET STREET, 32ND FLOOR, PHILADELPHIA PA 19103 |
| Stephen Bird |
director |
388 GREENWICH STREET, 17TH FLOOR, NEW YORK NY 10022 |
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