What is API Technologies 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, API Technologies'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 API Technologies's Probability of Financial Distress (%)
For the Semiconductors subindustry, API Technologies'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.
API Technologies's Probability of Financial Distress (%) Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, API Technologies's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where API Technologies's Probability of Financial Distress (%) falls into.
API Technologies 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% |
| = | 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).
API Technologies (API Technologies) Business Description
Traded in Other Exchanges
N/A
Address
API Technologies Corp was incorporated on February 2, 1999 under the laws of the State of Delaware under the name Rubicon Ventures Inc. On November 6, 2006, API changed its name to "API Nanotronics Corp," and subsequently changed its name to API Technologies Corp. on October 22, 2009. The Company through its three business segments-Systems, Subsystems & Components, Electronic Manufacturing Services and Secure Systems & Information Assurance. It designs, develops and manufactures systems, subsystems, RF and secure solutions, as well as provides electronics manufacturing and high-quality engineering services for technically demanding, high-reliability applications. Solutions areas include systems, subsystems and components which includes RF/microwave and microelectronics products, electromagnetics, power and systems solutions products, and sensors, Secure Systems and Information Assurance includes TEMPEST and emanation security, rugged communications products, encryption, and secure networking products and Electronics Manufacturing Services, which involves the production of circuit card assemblies, electromechanical assemblies, and box builds used in defense, industrial and commercial applications. The Company also operates several manufacturing facilities throughout North America, the United Kingdom, Mexico and China. Its customer base spans defense, aerospace, industrial, communications, medical, and government agencies, including the governments of the United States, Canada, the United Kingdom, & other countries. The Company is subject to federal contracting laws and regulations, including the U.S. Federal Acquisition Regulation (FAR) and the False Claims Act.
Executives
| Robert Tavares |
director, officer: President and CEO |
100 FIRST STAMFORD PLACE, STAMFORD CT 06902 |
| Eric F. Seeton |
officer: Chief Financial Officer |
103 HILL STREET, SHREWSBURY MA 01545 |
| Melvin L Keating |
director |
18 DRIFTWOOD DRIVE, LIVINGSTON NJ 07039 |
| Steel Excel Inc. |
10 percent owner |
590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
| Steel Partners Holdings L.p. |
10 percent owner |
590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
| Sph Group Holdings Llc |
10 percent owner |
C/O STEEL PARTNERS HOLDINGS L.P., 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
| Sph Group Llc |
10 percent owner |
C/O STEEL PARTNERS HOLDINGS L.P., 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
| Steel Partners Holdings Gp Inc. |
10 percent owner |
590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
| Kenneth J Krieg |
director |
7111 XAVIER COURT, MCLEAN VA 22101 |
| Matthew E Avril |
director |
C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 1111 WESTCHESTER AVE, WHITE PLAINS NY 10604 |
| Claudio A Mannarino |
officer: Sr VP & CFO |
229 COLONNADE ROAD, NEPEAN A6 K2E 7K3 |
| Senator Investment Group Lp |
10 percent owner |
510 MADISON AVENUE, 28TH FLOOR, NEW YORK NY 10022 |
| Douglas Silverman |
10 percent owner |
C/O SENATOR INVESTMENT GROUP LP 510 MADISON AVENUE, 28TH FLOOR NEW YORK NY 10022 |
| Bel Lazar |
officer: President & CEO |
4705 S. APOPKA VINELAND ROAD, SUITE 201, ORLANDO FL 32819 |
| Jason Dezwirek |
other: Former Dir, Sec & 10% owner |
2300 YONGE STREET, SUITE 1710, TORONTO A6 M4P 1E4 |
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