What is Mallinckrodt 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, Mallinckrodt's Probability of Financial Distress (%) is 50.00%.
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 Mallinckrodt's Probability of Financial Distress (%)
For the Drug Manufacturers - Specialty & Generic subindustry, Mallinckrodt'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.
Mallinckrodt's Probability of Financial Distress (%) Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Mallinckrodt's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Mallinckrodt's Probability of Financial Distress (%) falls into.
Mallinckrodt 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% |
| = | 50.00% |
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).
Mallinckrodt (Mallinckrodt) Business Description
Traded in Other Exchanges
N/A
Address
College Business and Technology Park, Cruiserath, Blanchardstown, Dublin, IRL, 15
Mallinckrodt PLC develops, manufactures, markets, and distributes specialty pharmaceutical products and therapies. Its areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, nephrology, pulmonology and ophthalmology; immunotherapy and neonatal respiratory critical care therapies; analgesics and gastrointestinal products. The company operates its business in two reportable segments namely Specialty Brands which include specialty pharmaceutical brands; and Specialty Generics which includes niche specialty generic drugs and active pharmaceutical ingredients. It generates maximum revenue from the Specialty Brands segment. Geographically, it derives a majority of its revenue from the United States.
Executives
| Sigurdur O Olafsson |
director, officer: President and CEO |
360 MOUNT KEMBLE AVENUE, MORRISTOWN NJ 07960 |
| Myers Woodrow A Jr |
director |
1 N ILLINOIS SREET 2101, INDIANAPOLIS IN 46204 |
| Fyi S.a R.l. |
10 percent owner |
19, RUE DE BITBOURG, LUXEMBOURG N4 L-1273 |
| Ffi Iii S.a R.l. |
10 percent owner |
19, RUE DE BITBOURG, LUXEMBOURG N4 L-1273 |
| Olifant Luxco S.a R.l. |
10 percent owner |
19, RUE DE BITBOURG, LUXEMBOURG N4 L-1273 |
| Daniel Arthur Celentano |
director |
2831 S. BAYSHORE DRIVE, UNIT 2103, MIAMI FL 33133 |
| Riad Hussein El-dada |
director |
910 TALAMORE DRIVE, AMBLER PA 19002 |
| Bracebridge Capital, Llc |
10 percent owner |
888 BOYLSTON STREET, SUITE 1500, BOSTON MA 02199 |
| Kassie Harrold |
officer: Chief Compliance Officer |
C/O MALLINCKRODT PHARMACEUTICALS, 675 MCDONNELL BLVD., HAZELWOOD MO 63042 |
| Neal P Goldman |
director |
10700 PARKRIDGE BLVD., RESTON VA 20191 |
| Steven J. Romano |
officer: EVP & Chief Sci. Ofcr |
675 MCDONNELL BLVD., HAZELWOOD MO 63042 |
| David Y Norton |
director |
8 GREENHOLM STREET, APT C, PRINCETON NJ 08540 |
| Carlos V Paya |
director |
C/O IMMUNE DESIGN CORP., 1616 EASTLAKE AVE. E, SUITE 310, SEATTLE WA 98102 |
| Anne Clem Whitaker |
director |
109 BRIERY BRANCH COURT, MORRISVILLE NC 27560 |
| James R Sulat |
director |
|
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