What is Kronos Bio 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, Kronos Bio's Probability of Financial Distress (%) is 0.36%.
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 Kronos Bio's Probability of Financial Distress (%)
For the Biotechnology subindustry, Kronos Bio'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.
Kronos Bio's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Kronos Bio's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Kronos Bio's Probability of Financial Distress (%) falls into.
Kronos Bio 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 |
| = | -5.61 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.36% |
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).
Kronos Bio (Kronos Bio) Business Description
Traded in Other Exchanges
N/A
Address
1300 So. El Camino Real, Suite 300, San Mateo, CA, USA, 94402
Kronos Bio Inc is a clinical-stage biopharmaceutical company dedicated to the discovery and development of novel cancer therapeutics designed to transform patient outcomes through a precision medicine strategy by targeting dysregulated transcription. The company operates in one business segment, the development of biopharmaceutical products.
Executives
| Jorge Dimartino |
officer: Chief Medical Officer & VP |
C/O KRONOS BIO, INC., 1300 S, SAN MATEO CA 94402 |
| Christopher Dinsmore |
officer: Chief Scientific Officer |
C/O KRONOS BIO, INC., 1300 EL CAMINO REAL, STE. 300, SAN MATEO CA 94402 |
| Barbara Kosacz |
officer: COO & General Counsel |
3175 HANOVER STREET, PALO ALTO CA 94304 |
| Norbert W Bischofberger |
director, 10 percent owner, officer: President & CEO |
333 LAKESIDE DR, C/O GILEAD SCIENCES, INC., FOSTER CITY CA 94404 |
| Sandra A. Gardiner |
officer: Interim CFO |
CUTERA, INC., 3240 BAYSHORE BOULEVARD, BRISBANE CA 94005 |
| Yasir B. Al-wakeel |
officer: Chief Financial Officer |
MERRIMACK PHARMACEUTICALS, INC., ONE KENDALL SQUARE, SUITE B7201, CAMBRIDGE MA 02139 |
| Roger D Dansey |
director |
21823 30TH DRIVE SE, BOTHELL WA 98021 |
| Katherine V Stultz |
director |
C/O GRAPHITE BIO, INC., 279 EAST GRAND AVENUE, SUITE 430, SOUTH SAN FRANCISCO CA 94080 |
| Backer Marianne De |
director |
177 E COLORADO BLVD, SUITE 700, PASADENA CA 91105 |
| Roshawn A. Blunt |
director |
11682 EL CAMINO REAL STE 300, SAN DIEGO CA 92130 |
| Jakob Loven |
director |
C/O ARVINAS, INC., 5 SCIENCE PARK, 395 WINCHESTER AVENUE, NEW HAVEN CT 06511 |
| Taiyin Yang |
director |
2631 HANOVER STREET, PALO ALTO CA 94304 |
| Otello Stampacchia |
director, 10 percent owner |
888 BOYLSTON ST., SUITE 1111, BOSTON MA 02199 |
| John C Martin |
director |
333 LAKESIDE DRIVE, FOSTER CITY X1 94404 |
| Elena Ridloff |
director |
C/O ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130 |
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