What is Boise Cascade Co 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, Boise Cascade Co's Probability of Financial Distress (%) is 0.01%.
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 Boise Cascade Co's Probability of Financial Distress (%)
For the Building Materials subindustry, Boise Cascade Co'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.
Boise Cascade Co's Probability of Financial Distress (%) Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, Boise Cascade Co's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Boise Cascade Co's Probability of Financial Distress (%) falls into.
Boise Cascade Co 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 |
| = | -8.89 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.01% |
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).
Boise Cascade Co (Boise Cascade Co) Business Description
Traded in Other Exchanges
Address
1111 West Jefferson Street, Suite 300, Boise, ID, USA, 83702-5389
Boise Cascade Co is a producer of engineered wood products (EWP) and plywood. The firm operates in two segments namely Wood Products and Building Materials Distribution. Wood Products segment manufactures EWP, consisting of laminated veneer lumber (LVL), I-joists, and laminated beams. The Building Materials Distribution segment is engaged in the wholesale of building materials. It distributes products such as plywood, OSB, and lumber items such as siding, doors, metal products, insulation, and roofing, EWP and others. The company generates a majority of its revenue from the Building Material Distribution segment.
Executives
| Sue Ying Taylor |
director |
PO BOX 50, BOISE ID 83728-0050 |
| Steven C Cooper |
director |
PO BOX 2910, TACOMA WA 98401-2910 |
| Dean Michael Brown |
officer: EVP, Wood Products |
PO BOX 50, BOISE ID 83728-0050 |
| Jeffrey Robert Strom |
officer: EVP, BMD |
PO BOX 50, BOISE ID 83728-0050 |
| Kristopher J Matula |
director |
BUCKEYE TECHNOLOGIES INC, 1001 TILLMAN STREET, MEMPHIS TN 38112 |
| Mack L Hogans |
director |
WEYERHAEUSER CO, P O B 9777, FEDERAL WAY WA 98063 |
| Thomas E Carlile |
director, officer: Chief Executive Officer |
BOISE CASCADE COMPANY, P.O. BOX 50, BOISE ID 83728 |
| Jill Twedt |
officer: VP, General Counsel & Corp Sec |
PO BOX 50, BOISE ID 83728-0050 |
| Kelly E. Hibbs |
officer: VP and Controller |
C/O BOISE CASCADE, L.L.C., 1111 WEST JEFFERSON STREET, SUITE 300, BOISE ID 83702-5389 |
| Amy Humphreys |
director |
PO BOX 50, BOISE ID 83728-0050 |
| Craig O Dawson |
director |
PO BOX 50, BOISE ID 83728-0050 |
| Wayne M Rancourt |
officer: SVP, CFO and Treasurer |
1111 WEST JEFFERSON STREET, SUITE 300, P O BOX 50, BOISE ID 83728 |
| Nick Stokes |
officer: EVP, BMD |
C/O BOISE CASCADE COMPANY, 1111 W. JEFFERSON ST., STE. 300, BOISE ID 83702 |
| Thomas Kevin Corrick |
officer: EVP, Wood Products |
C/O BOISE CASCADE, L.L.C., 1111 W. JEFFERSON ST., STE 300, BOISE ID 83702-5389 |
| Nate Jorgensen |
officer: COO |
PO BOX 50, BOISE ID 83728-0050 |
Boise Cascade Co (Boise Cascade Co) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BCC has been successfully added to your