What is IO Biotech 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, IO Biotech's Probability of Financial Distress (%) is 0.17%.
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 IO Biotech's Probability of Financial Distress (%)
For the Biotechnology subindustry, IO Biotech'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.
IO Biotech's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, IO Biotech's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where IO Biotech's Probability of Financial Distress (%) falls into.
IO Biotech 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 |
| = | -6.38 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.17% |
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).
IO Biotech (IO Biotech) Business Description
Traded in Other Exchanges
N/A
Address
Ole Maaloes Vej 3, Copenhagen N, DNK, DK-2200
IO Biotech Inc is a clinical-stage biopharmaceutical company developing novel, immune-modulating cancer vaccines based on T-win technology platform. The product candidates are designed to induce the immune system to simultaneously target and disrupt multiple pathways that regulate tumor-induced immunosuppression.
Executives
| Brian Burkavage |
officer: Chief Accounting Officer |
C/O PASSAGE BIO, INC., ONE COMMERCE SQUARE, 39TH FLOOR, PHILADELPHIA PA 19103 |
| Heidi Hunter |
director |
C/O SUTRO BIOPHARMA, INC., 310 UTAH AVE., SUITE 150, SOUTH SAN FRANCISCO CA 94080 |
| Partners Kurma |
10 percent owner |
24 RUE ROYALE, PARIS I0 75008 |
| Novo Holdings A/s |
10 percent owner |
TUBORG HAVNEVEJ 19, HELLERUP G7 2900 |
| Vivo Opportunity Fund Holdings, L.p. |
10 percent owner |
192 LYTTON AVENUE, PALO ALTO CA 94301 |
| Devin Whittemore Smith |
officer: General Counsel |
C/O MINERVA NEUROSCIENCES, INC., 1601 TRAPELO ROAD, SUITE 286, WALTHAM MA 02451 |
| Vivo Capital Fund Ix, L.p. |
10 percent owner |
192 LYTTON AVENUE, PALO ALTO CA 94301 |
| Vivo Opportunity, Llc |
10 percent owner |
192 LYTTON AVENUE, PALO ALTO CA 94301 |
| Qasim Iftikhar Ahmad |
officer: Chief Medical Officer |
1209 ORANGE STREET, WILMINGTON DE 19801 |
| Amy Sullivan |
officer: Chief Financial Officer |
38 OUTLOOK ROAD, SWAMPSCOTT MA 01907 |
| David V Smith |
director |
6035 STONERIDGE DRIVE, PLEASANTON CA 94588 |
| Lundbeckfond Invest A/s |
10 percent owner |
SCHERFIGSVEJ 7, COPENHAGEN G7 DK-2100 |
| Jack Nielsen |
director |
C/O AKEBIA THERAPEUTICS, INC., 245 FIRST STREET, SUITE 1100, CAMBRIDGE MA 02142 |
| Vanessa Malier |
director |
1209 ORANGE STREET, WILLMINGTON DE 19801 |
| Claus A. Andersson |
director |
1209 ORANGE STREET, WILMINGTON DE 19801 |
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