What is Tempest Therapeutics 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, Tempest Therapeutics's Probability of Financial Distress (%) is 0.47%.
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 Tempest Therapeutics's Probability of Financial Distress (%)
For the Biotechnology subindustry, Tempest Therapeutics'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.
Tempest Therapeutics's Probability of Financial Distress (%) Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Tempest Therapeutics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Tempest Therapeutics's Probability of Financial Distress (%) falls into.
Tempest Therapeutics 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 |
| = | -5.35 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.47% |
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).
Tempest Therapeutics (Tempest Therapeutics) Business Description
Traded in Other Exchanges
Address
2000 Sierra Point Parkway, Suite 400, Brisbane, CA, USA, 94005
Tempest Therapeutics Inc is a clinical-stage biotechnology company developing small molecule therapeutics to treat cancer through mechanisms that directly kill tumor cells and activate tumor-specific immunity.
Executives
| Justin Trojanowski |
officer: Corporate Controller |
C/O TEMPEST THERAPEUTICS, INC., 7000 SHORELINE COURT, SUITE 275, SOUTH SAN FRANCISCO CA 94080 |
| Nicholas Maestas |
officer: VP of Strategy and Finance |
7000 SHORELINE COURT, SUITE 275, SOUTH SAN FRANCISCO CA 20005 |
| Versant Venture Capital Vi, L.p. |
10 percent owner |
ONE SANSOME STREET, SUITE 1650, SAN FRANCISCO CA 94104 |
| Versant Side Fund Iv, L.p. |
10 percent owner |
ONE SANSOME STREET, SUITE 3630, SAN FRANCISCO CA 94104 |
| Versant Venture Capital Iv, L.p. |
10 percent owner |
ONE SANSOME STREET, SUITE 3630, SAN FRANCISCO CA 94104 |
| Versant Ventures Iv, Llc |
10 percent owner |
ONE SANSOME STREET, SUITE 3630, SAN FRANCISCO CA 94104 |
| Thomas Woiwode |
director, 10 percent owner |
ONE SANSOME STREET, SUITE 1650, SAN FRANCISCO CA 94104 |
| Versant Ventures Vi Gp-gp, Llc |
10 percent owner |
ONE SANSOME STREET, SUITE 3630, SAN FRANCISCO CA 94104 |
| Versant Ventures Vi Gp, L.p. |
10 percent owner |
ONE SANSOME STREET, SUITE 3630, SAN FRANCISCO CA 94104 |
| Versant Vantage Ii, L.p. |
10 percent owner |
ONE SANSOME STREET, SUITE 1650, SAN FRANCISCO CA 94104 |
| Versant Vantage Ii Gp-gp, Llc |
10 percent owner |
ONE SANSOME STREET, SUITE 1650, SAN FRANCISCO CA 94104 |
| Versant Vantage Ii Gp, L.p. |
10 percent owner |
ONE SANSOME STREET, SUITE 1650, SAN FRANCISCO CA 94104 |
| Thomas W. Dubensky |
director, officer: President |
C/O ADURO BIOTECH, INC., 740 HEINZ AVENUE, BERKELEY CA 94710 |
| Samuel Whiting |
officer: Chief Medical Officer |
C/O TEMPEST THERAPEUTICS, INC., 7000 SHORELINE COURT, SUITE 275, SOUTH SAN FRANCISCO CA 94080 |
| Rock Springs Capital Llc |
10 percent owner |
650 SOUTH EXETER STREET, SUITE 1070, BALTIMORE MD 21202 |
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