What is AMC Entertainment Holdings 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, AMC Entertainment Holdings's Probability of Financial Distress (%) is 0.86%.
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 AMC Entertainment Holdings's Probability of Financial Distress (%)
For the Entertainment subindustry, AMC Entertainment Holdings'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.
AMC Entertainment Holdings's Probability of Financial Distress (%) Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, AMC Entertainment Holdings's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where AMC Entertainment Holdings's Probability of Financial Distress (%) falls into.
AMC Entertainment Holdings 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 |
| = | -4.75 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.86% |
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).
AMC Entertainment Holdings (AMC Entertainment Holdings) Business Description
Traded in Other Exchanges
Address
11500 Ash Street, One AMC Way, Leawood, KS, USA, 66211
AMC Entertainment Holdings Inc is involved in the theatrical exhibition business. It owns, operates or has interests in theatres located in the United States and Europe. It provides amenities such as plush, power recliners, MacGuffins full bars, AMC Dine-In Theatres, premium presentation. The group operates in U.S. markets and International markets. It derives key revenue from the U.S.
Executives
| Ellen Copaken |
officer: SVP MARKETING |
11500 ASH STREET, LEAWOOD KS 66211 |
| Kerith Sheehan Putnam |
director |
11500 ASH ST, LEAWOOD KS 66211 |
| Antara Capital Gp Llc |
10 percent owner |
500 FIFTH AVENUE, SUITE 2320, NEW YORK NY 10110 |
| Antara Capital Fund Gp Llc |
10 percent owner |
500 FIFTH AVENUE, SUITE 2320, NEW YORK NY 10110 |
| Antara Capital Master Fund Lp |
10 percent owner |
500 FIFTH AVENUE, SUITE 2320, NEW YORK NY 10110 |
| Antara Capital Lp |
10 percent owner |
55 HUDSON YARDS, 47TH FLOOR, NEW YORK NY 10001 |
| Himanshu Gulati |
10 percent owner |
500 FIFTH AVENUE, SUITE 2320, NEW YORK NY 10110 |
| Sean D. Goodman |
officer: EVP & CFO |
11500 ASH STREET, LEAWOOD KS 66211 |
| Denise M. Clark |
director |
C/O AMC ENTERTAINMENT HOLDINGS INC, 11500 ASH STREET, LEAWOOD KS 66211 |
| Chris A Cox |
officer: SVP, CHIEF ACCOUNTING OFFICER |
AMC ENTERTAINMENT HOLDINGS INC, ONE AMC WAY, 11500 ASH STREET, LEAWOOD KS 66211 |
| John D Mcdonald |
officer: EVP, US OPERATION |
C/O AMC ENTERTAINMENT HOLDINGS INC, ONE AMC WAY, 11500 ASH STREET, LEAWOOD KS 66211 |
| Elizabeth F Frank |
officer: EVP, WWP AND CCO |
ONE AMC WAY, 11500 ASH STREET, LEAWOOD KS 66211 |
| Lee Wittlinger |
director |
C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
| Daniel E Ellis |
officer: SVP,DEVEL AND INTERNATIONAL |
|
| Stephen A Colanero |
officer: EVP, CHIEF MARKETING OFFICER |
AMC ENTERTAINMENT HOLDINGS INC, ONE AMC WAY, 11500 ASH STREET, LEAWOOD KS 66211 |
AMC Entertainment Holdings (AMC Entertainment Holdings) Headlines
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