What is Air Industries Group 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, Air Industries Group's Probability of Financial Distress (%) is 0.06%.
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 Air Industries Group's Probability of Financial Distress (%)
For the Aerospace & Defense subindustry, Air Industries Group'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.
Air Industries Group's Probability of Financial Distress (%) Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Air Industries Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Air Industries Group's Probability of Financial Distress (%) falls into.
Air Industries Group 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 |
| = | -7.38 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.06% |
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).
Air Industries Group (Air Industries Group) Business Description
Traded in Other Exchanges
Address
1460 Fifth Avenue, Bay Shore, New York, NY, USA, 11706
Air Industries Group is an aerospace and defense company. Its manufactures and designs structural parts and assemblies that focus on flight safety, including landing gear, arresting gear, engine mounts, flight controls, throttle quadrants, jet engines, and other components. The company also provides sheet metal fabrication of aerostructures, tube bending, and welding services. It reports into two segments namely Complex Machining, and Turbine Engine Components.
Executives
| Scott Glassman |
officer: CHIEF FINANCIAL OFFICER |
1479 NORTH CLINTON AVENUE, BAY SHORE NY 11706 |
| Luciano M Melluzzo |
officer: President |
93 FOXON PLACE, NEW BRITAIN CT 06053 |
| Michael N Taglich |
director |
TAGLICH BROTHERS INC, 1370 AVENUE OF THE AMERICAS --31ST FLOOR, NEW YORK NY 6317254791 |
| Michael Porcelain |
director |
68 SOUTH SERVICE ROAD, SUITE 230, MELVILLE NY 11747 |
| Peter Rettaliata |
director |
C/O AIR INDUSTRIES, 1479 CLINTON AVENUE, BAY SHORE NY 11706 |
| Robert Taglich |
director, 10 percent owner |
700 NEW YORK AVENUE, HUNTINGTON NY 11743 |
| Michael Brand |
director |
4196 MAJESTIC CIRCLE, MEDINA OH 44256 |
| David S. Richmond |
10 percent owner, other: See Footnote 1 |
3568 WILDWOOD AVENUE, JACKSON MI 49202 |
| Rbi Private Investment Iii, Llc |
other: See Footnote 1 |
3568 WILDWOOD AVENUE, JACKSON MI 49202 |
| Matthew J. Curfman |
10 percent owner, other: See Footnote 1 |
3568 WILDWOOD AVENUE, JACKSON MI 49202 |
| Rbi Pi Manager, Llc |
other: See Footnote 1 |
3568 WILDWOOD AVENUE, JACKSON MI 49202 |
| Richmond Brothers 401(k) Profit Sharing Plan |
other: See Footnote 1 |
3568 WILDWOOD AVENUE, JACKSON MI 49202 |
| Rbi Private Investment Ii, Llc |
other: See Footnote 1 |
3568 WILDWOOD AVENUE, JACKSON MI 49202 |
| Richmond Brothers, Inc. |
10 percent owner, other: See Footnotes 1 and 2 |
7415 FOXWORTH COURT, JACKSON MI 49201 |
| Michael E Recca |
officer: Chief Financial Officer |
|
Air Industries Group (Air Industries Group) Headlines
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