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Pardes Biosciences (Pardes Biosciences) Probability of Financial Distress (%) : 50.00% (As of May. 27, 2024)


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What is Pardes Biosciences 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, Pardes Biosciences'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 Pardes Biosciences's Probability of Financial Distress (%)

For the Biotechnology subindustry, Pardes Biosciences'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.


Pardes Biosciences's Probability of Financial Distress (%) Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Pardes Biosciences's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Pardes Biosciences's Probability of Financial Distress (%) falls into.



Pardes Biosciences 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

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


8. PRICE

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


Pardes Biosciences  (NAS:PRDS) 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.


Pardes Biosciences Probability of Financial Distress (%) Related Terms

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Pardes Biosciences (Pardes Biosciences) Business Description

Industry
Traded in Other Exchanges
N/A
Address
2173 Salk Avenue, Suite 250, PMB No. 052, Carlsbad, CA, USA, 92008
Pardes Biosciences Inc is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing novel oral-antiviral therapeutics to improve the lives of patients suffering from life-threatening disease, starting with the lead product candidate, pomotrelvir (formerly known as PBI-0451), which is in clinical development and intended to treat COVID-19 in adult and pediatric patients. COVID-19 is caused by infection with the severe acute respiratory syndrome coronavirus (SARS-CoV-2). Pomotrelvir inhibits the main coronaviral cysteine protease, a viral protein essential for the replication of all known coronaviruses, including SARS-CoV-2.
Executives
Fs Development Holdings Ii, Llc 10 percent owner 600 MONTGOMERY STREET, SUITE 4500, SAN FRANCISCO CA 94111
Foresite Capital Opportunity Fund V, L.p. 10 percent owner 600 MONTGOMERY STREET, SUITE 4500, SAN FRANCISCO CA 94111
Foresite Capital Fund V, L.p. 10 percent owner 600 MONTGOMERY STREET, SUITE 4500, SAN FRANCISCO CA 94111
Sean P. Brusky officer: Chief Commercial Officer C/O PARDES BIOSCIENCES, INC., 2173 SALK AVE., SUITE 250, PMB#052, CARLSBAD CA 92008
Thomas G Wiggans director, officer: Chief Executive Officer
Foresite Capital Management V, Llc 10 percent owner 900 LARKSPUR LANDING CIRCLE, SUITE 150, LARKSPUR CA 94939
Pottage John C Jr director ACHILLION PHARMACEUTICALS, 300 GEORGE STREET, NEW HAVEN CT 06511
Alsup Laurie Smaldone director 190 WOOSAMONSA RD, PENNINGTON NJ 08534
Heidi Henson officer: Chief Financial Officer 2173 SALK AVENUE, SUITE 250, PMB#052, CARLSBAD CA 92008
J Jay Lobell director 365 W END AVE, APARTMENT 10A, NEW YORK NY 10024
Brian Philippe Tinmouth officer: Chief Business & Strategy Ofcr 1 EVERTRUST PLAZA, 13TH FLOOR, JERSEY CITY NJ 07302-6548
Brian Kearney officer: Chief Development Officer C/O PARDES BIOSCIENCES, INC., 2173 SALK AVE., SUITE 250, PMB#052, CARLSBAD CA 92008
Laura Hamill director 333 LAKESIDE DRIVE, FOSTER CITY CA 94404
Lee D Arnold officer: Chief Scientific Officer C/O ASSEMBLY BIOSCIENCES, INC., 99 HUDSON STREET, 5TH FLOOR, NEW YORK NY 10013
Uri A Lopatin director, officer: President and CEO C/O ASSEMBLY BIOSCIENCES, INC., 99 HUDSON STREET, 5TH FLOOR, NEW YORK NY 10013