PLx Pharma Winddown (PLx Pharma Winddown) Probability of Financial Distress (%) : 0.00% (As of Apr. 29, 2024)

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What is PLx Pharma Winddown 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, PLx Pharma Winddown'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 PLx Pharma Winddown's Probability of Financial Distress (%)

For the Drug Manufacturers - Specialty & Generic subindustry, PLx Pharma Winddown'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.

PLx Pharma Winddown's Probability of Financial Distress (%) Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, PLx Pharma Winddown's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where PLx Pharma Winddown's Probability of Financial Distress (%) falls into.

PLx Pharma Winddown 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%
	=	0.00%

The eight explanatory variables are:

1. NIMTAAVG = Net Income to Market Total Assets

NIMTAAVG	=	Net Income	/	Market Total Assets
	=	Net Income	/	(Market Cap + Total Liabilities)

*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

TLMTA

Total Liabilities

Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For non-financial companies, CASHMTA is measured as:

CASHMTA

Cash, Cash Equivalents, Marketable Securities

Market Total Assets

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

MB	=	Market Cap	/	Adjusted Book Equity
	=	Market Cap	/	(Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

PLx Pharma Winddown (OTCPK:PLXPQ) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.

PLx Pharma Winddown Probability of Financial Distress (%) Related Terms

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PLx Pharma Winddown (PLx Pharma Winddown) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » PLx Pharma Winddown Corp (OTCPK:PLXPQ) » Definitions » Probability of Financial Distress (%)

Comparable Companies

Traded in Other Exchanges

N/A

Address

8 The Green, Suite 11895, Dover, DE, USA, 19901

Website

https://www.plxpharma.com

PLx Pharma Winddown Corp Formerly PLx Pharma Inc is a specialty pharmaceutical company focused on its clinically-validated and patent-protected PLxGuard drug delivery platform designed to provide more effective and safer products. The PLxGuard drug delivery platform works by targeting the release of active pharmaceutical ingredients to various portions of the GI tract. It believes this platform has the potential to improve the absorption of many drugs currently on the market or in development and to reduce the risk of stomach erosions and ulcers associated with drugs. VAZALORE is a novel formulation of aspirin clinically shown to provide fast, reliable and predictable platelet inhibition for patients with vascular disease and diabetic patients who may be candidates for aspirin therapy.

Executives

Rita M O'connor	officer: Chief Financial Officer	4 OAK PARKWAY, SPARTA NJ 07871
Natasha Giordano	director, officer: Chief Executive Officer	8285 EL RIO STREET, SUITE 130, HOUSTON TX 77054
Michael J Valentino	director, officer: Executive Chairman	8285 EL RIO STREET, SUITE 130, HOUSTON TX 77054
John Hadden	director	1375 S FORT HARRISON AVE, CLEARWATER FL 33756
Robert D. Hardie	10 percent owner	210 RIDGE MCINTIRE ROAD, SUITE 350, CHARLOTTESVILLE VA 22903
Molly G. Hardie	10 percent owner	210 RIDGE MCINTIRE ROAD, SUITE 350, CHARLOTTESVILLE VA 22903
Level One Partners, Llc	10 percent owner	210 RIDGE MCINTIRE ROAD, SUITE 350, CHARLOTTESVILLE VA 22903
Kirk K Calhoun	director	8285 EL RIO STREET, SUITE 130, HOUSTON TX 77054
Gary S. Balkema	director	8285 EL RIO STREET, SUITE 130, HOUSTON TX 77054
Robert Casale	director	8285 EL RIO STREET, SUITE 130, HOUSTON TX 77054
Anthony Bartsh	director	C/O PARK WEST ASSET MANAGEMENT, LLC, 900 LARKSPUR CIRCLE, SUITE 165, LARKSPUR CA 94939
Park West Asset Management Llc	10 percent owner	1 LETTERMAN DRIVE, SUITE C5-900, SAN FRANCISCO CA 94129
Efthymios Deliargyris	officer: Chief Medical Officer	C/O PLX PHARMA,INC.8285 EL RIO STREET, SUITE 210, HOUSTON TX 77054
Gary L Mossman	officer: Chief Operating Officer	8285 EL RIO STREET, SUITE 130, HOUSTON TX 77054
David Emerson Jorden	officer: Acting Chief Financial Officer	2635 TECHNOLOGY FOREST BLVD., THE WOODLANDS TX 77381