What is Roivant Sciences 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, Roivant Sciences'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 Roivant Sciences's Probability of Financial Distress (%)
For the Biotechnology subindustry, Roivant Sciences'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.
Roivant Sciences's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Roivant Sciences's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Roivant Sciences's Probability of Financial Distress (%) falls into.
Roivant Sciences 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 |
| = | -15.16 |
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
*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).
Roivant Sciences (Roivant Sciences) Business Description
Traded in Other Exchanges
Address
50 Broadway, 7th Floor, London, GBR, SW1H 0BD
Roivant Sciences Ltd is a biopharmaceutical company dedicated to improving the delivery of healthcare to patients.
Executives
| Eric Venker |
officer: President & COO |
C/O ROIVANT SCIENCES, INC., 320 WEST 37TH STREET, 6TH FLOOR, NEW YORK NY 10018 |
| Keith S Manchester |
director |
C/O ROIVANT SCIENCES LTD., 11-12 ST. JAMES'S SQUARE SUITE 1, 3RD FL, LONDON X0 SW1Y 4L |
| Daniel Allen Gold |
director |
6720 VIA AUSTI PARKWAY, SUITE 450, LAS VEGAS NV 89119 |
| Qvt Financial Lp |
10 percent owner, other: Director by Deputization |
888 SEVENTH AVENUE, 43RD FLOOR, NEW YORK NY 10106 |
| Svf Investments (uk) Ltd |
10 percent owner |
69 GROSVENOR STREET, LONDON X0 W1K3JP |
| Rakhi Kumar |
officer: Chief Accounting Officer |
C/O NEUROPACE INC, 455 N BERNARDO AVENUE, MOUNTAIN VIEW CA 94043 |
| Viking Global Investors Lp |
10 percent owner |
600 WASHINGTON BLVD., FLOOR 11, STAMFORD CT 06901 |
| Viking Global Performance Llc |
10 percent owner |
55 RAILROAD AVENUE, 3RD FLOOR, GREENWICH CT 06830 |
| Sumitomo Chemical Co., Ltd. |
10 percent owner |
7-1, NIHONBASHI 2-CHOME, CHUO-KU, TOKYO M0 103-6020 |
| Viking Global Opportunities Parent Gp Llc |
10 percent owner |
600 WASHINGTON BLVD., FLOOR 11, STAMFORD CT 06901 |
| Softbank Vision Fund L.p. |
10 percent owner |
AZTEC GROUP HOUSE, 11-15 SEATON PLACE, ST HELIER Y9 JE4 0QH |
| Meghan Fitzgerald |
director |
C/O VION PHARMACEUTICALS, INC., 4 SCIENCE PARK, NEW HAVEN CT 06511 |
| Richard Pulik |
officer: CFO |
SUITE 1, 3RD FLOOR, 11-12 ST. JAMES'S SQUARE, LONDON X0 SW1Y 4LB |
| Vivek Ramaswamy |
director |
C/O ONCORE BIOPHARMA, INC., 3805 OLD EASTON ROAD, DOYLESTOWN PA 18902 |
| Dexcel Pharma Technologies Ltd. |
10 percent owner |
1 DEXCEL STREET, OR AKIVA L3 3060000 |
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