What is Renovacor 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, Renovacor'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 Renovacor's Probability of Financial Distress (%)
For the Biotechnology subindustry, Renovacor'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.
Renovacor's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Renovacor's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Renovacor's Probability of Financial Distress (%) falls into.
Renovacor 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).
Renovacor (Renovacor) Business Description
Traded in Other Exchanges
N/A
Address
P.O. Box 8142, Greenwich, CT, USA, 06836
Renovacor Inc is a preclinical stage gene therapy company developing a pipeline of innovative and proprietary AAV-based gene therapies for BAG3 gene mutation-associated diseases in areas of high unmet medical need. Its therapeutic focus is on cardiovascular disease, with a lead program in BAG3 mutation-associated dilated cardiomyopathy.
Executives
| Joseph S Carroll |
officer: Chief Accounting Officer |
C/O RENOVACOR, INC., 5 MEAD POINT DRIVE, GREENWICH CT 06830 |
| Gregory F Covino |
director |
C/O RICHARD W DAVIES HUBBELL INC, 684 DERBY MILFORD RD, ORANGE CT 06477 |
| Joan Lau |
director |
C/O RENOVACOR, INC., 5 MEAD POINT DRIVE, GREENWICH CT 06830 |
| Benz Edward J. Jr |
director |
C/O DECIPHERA PHARMACEUTICALS, INC., 200 SMITH STREET, WALTHAM MA 02451 |
| Needham Thomas E. Jr. |
director |
MERRIMACK PHARMACEUTICALS, INC., ONE KENDALL SQUARE, SUITE B7201, CAMBRIDGE MA 02139 |
| Frederick W Driscoll |
officer: Chief Financial Officer |
|
| Jonas Grossman |
director |
17 STREET, SUITE 1600, NEW YORK NY 10004 |
| Gbolahan Amusa |
director |
17 STATE STREET 21 FLOOR, NEW YORK NY 10004 |
| Magdalene Cook |
director, officer: Chief Executive Officer |
C/O RENOVACOR, INC., 5 MEAD POINT DRIVE, GREENWICH CT 06830 |
| Matthew Killeen |
officer: Chief Scientific Officer |
C/O RENOVACOR, INC., 5 MEAD POINT DRIVE, GREENWICH CT 06830 |
| Rtw Investments, Lp |
10 percent owner |
40 10TH AVENUE, 7TH FLOOR, NEW YORK NY 10014 |
| Rtw Master Fund, Ltd. |
10 percent owner |
C/O WALKERS CORPORATE LIMITED, 190 ELGIN AVENUE, GEORGE TOWN, GRAND CAYMAN E9 KY1-9008 |
| Roderick Wong |
10 percent owner |
C/O RTW INVESTMENTS, LP, 40 10TH AVENUE, 7TH FLOOR, NEW YORK NY 10014 |
| Marc Semigran |
officer: Chief Medical Officer |
C/O MYOKARDIA, INC., 333 ALLERTON AVE, SOUTH SAN FRANCISCO CA 94080 |
| Wendy F Dicicco |
officer: Interim CFO |
|
Renovacor (Renovacor) Headlines
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