What is Lixte Biotechnology Holdings 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, Lixte Biotechnology Holdings's Probability of Financial Distress (%) is 1.37%.
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 Lixte Biotechnology Holdings's Probability of Financial Distress (%)
For the Biotechnology subindustry, Lixte Biotechnology Holdings'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.
Lixte Biotechnology Holdings's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Lixte Biotechnology Holdings's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Lixte Biotechnology Holdings's Probability of Financial Distress (%) falls into.
Lixte Biotechnology Holdings 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 |
| = | -4.28 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 1.37% |
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).
Lixte Biotechnology Holdings (Lixte Biotechnology Holdings) Business Description
Traded in Other Exchanges
N/A
Address
680 East Colorado Boulevard, Suite 180, Pasadena, CA, USA, 91101
Lixte Biotechnology Holdings Inc is a drug discovery company that has a developed unique, proprietary, first-in-class protein phosphatase inhibitor, LB-100, as its lead clinical compound. LB-100 has potential widespread use as an anti-cancer agent when used alone and in combination with standard anti-cancer therapies, including cytotoxic drugs, radiation, and immune checkpoint blockers. The Company's product pipeline is primarily focused on inhibitors of protein phosphatases, used alone and in combination with cytotoxic agents and x-ray and immune checkpoint blockers.
Executives
| Rene Bernards |
director |
KONINGSVAREN 37, ABCOUDE P7 1391AD |
| Van Der Baan Bastiaan Jeroen |
director |
HOGEWEG 4-H, AMSTERDAM P7 1098CB |
| Eric Forman |
10 percent owner |
117 E. 29TH ST., APT. 5A, NEW YORK NY 10016 |
| Regina Brown |
director |
248 ROUTE 25A, NO. 2, EAST SETAUKET NY 11733 |
| Glenn Krinsky |
10 percent owner |
C/O SRKP 1, INC., 1900 AVENUE OF THE STARS, SUITE 310, LOS ANGELES CA 90067 |
| Yun Yen |
director |
1301 OAKLAWN ROAD, ARCADIA CA 91006 |
| Robert Greenberg |
10 percent owner |
SKECHERS USA INC, 228 MANHATTAN BEACH BLVD, MANHATTAN BEACH CA 90266 |
| Gil Schwartzberg |
10 percent owner |
269 S. BEVERLY DR., #1315, BEVERLY HILLS CA 90212 |
| Philip F Palmedo |
director |
1801 CENTURY PARK EAST #1600, LOS ANGELES CA 90067 |
| John S Kovach |
director, 10 percent owner, officer: Pres., CFO & Secty |
1801 CENTURY PARK EAST #1600, LOS ANGELES CA 90067 |
| Stephen J. Forman |
director |
248 ROUTE 25A, NO. 2, EAST SETAUKET NY 11733 |
| Hung Tak Ho |
10 percent owner |
MAYFAIR BY THE SEA II, TOWER T8, 1/F, UNIT A, 21 FO CHUN ROAD, PAK SHEK KOK, TAIPO K3 00000 |
| Robert N Weingarten |
officer: Vice President and CFO |
5439 LOCKHURST DRIVE, WOODLAND HILLS CA 91367 |
| James Miser |
officer: Chief Medical Officer |
680 E COLORADO BLVD., SUITE 180, PASADENA CA 91101 |
| Jane Merrill Riggs |
10 percent owner |
4852 SAINT ANDRES AVENUE, LA VERNE CA 91750 |
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