What is Barfresh Food 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, Barfresh Food Group's Probability of Financial Distress (%) is 1.10%.
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 Barfresh Food Group's Probability of Financial Distress (%)
For the Beverages - Non-Alcoholic subindustry, Barfresh Food 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.
Barfresh Food Group's Probability of Financial Distress (%) Distribution in the Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Barfresh Food Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Barfresh Food Group's Probability of Financial Distress (%) falls into.
Barfresh Food 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 |
| = | -4.50 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 1.10% |
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).
Barfresh Food Group (Barfresh Food Group) Business Description
Traded in Other Exchanges
N/A
Address
3600 Wilshire Boulevard, Suite 1720, Los Angeles, CA, USA, 90010
Barfresh Food Group Inc develops, manufactures and distributes ready to blend frozen beverages, including smoothies, shakes and frappes for restaurant chains and the foodservice industry. The company's proprietary, patented system uses portion-controlled pre-packaged beverage ingredients that deliver freshly made frozen beverages that are quick, cost efficient, and without waste. Barfresh provides both a single serve solution and a bulk format solution, ideal for high-volume locations. It has seven flavors available as part of its standard line vanilla shake, caribbean smoothie, triple berry smoothie, caramel macchiato frappe, strawberry banana smoothie, mocha frappe and mango burst smoothie and has the development capabilities to deliver custom flavors.
Executives
| Lisa Roger |
officer: CHIEF FINANCIAL OFFICER |
3600 WILSHIRE BOULEVARD SUITE 1720, LOS ANGELES CA 90010 |
| Lazarus Investment Partners Lllp |
10 percent owner |
C/O IBEX INVESTORS LLC, 260 NORTH JOSEPHINE STREET, SUITE 300, DENVER CO 80206 |
| Lazarus Macro Micro Partners Lllp |
10 percent owner |
260 N. JOSEPHINE STREET, SUITE 300, DENVER CO 80206 |
| Joseph M. Cugine |
director |
16859 CAMINETTO COURT, NAPLES, NAPLES FL 34110 |
| Delle Coste Riccardo |
director, 10 percent owner, officer: Chief Executive Officer |
C/O BARFRESH FOOD GROUP, INC., 8530 WILSHIRE BOULEVARD, SUITE 450, BEVERLY HILLS CA 90211 |
| Raffi Loussararian |
officer: PRINCIPAL ACCOUNTING OFFICER |
3600 WILSHIRE BLVD, SUITE 1720, LOS ANGELES CA 90010 |
| Lazarus Management Co Llc |
10 percent owner |
260 N. JOSEPHINE STREET, SUITE 300, DENVER CO 80206 |
| Alice Elliot |
director |
C/O BARFRESH FOOD GROUP, INC., 8530 WILSHIRE BOULEVARD, SUITE 450, BEVERLY HILLS CA 90211 |
| Isabelle Ortiz-cochet |
director |
2 ALLEE DE LONGCHAMP, SURESNES I0 92150 |
| Nibel |
10 percent owner |
2 ALLEE DE LONGCHAMP, SURESNES I0 92150 |
| Bruno Schoch |
director |
2 ALLEE DE LONGCHAMP, SURESNES I0 92150 |
| Steven Lang |
director, 10 percent owner |
C/O BARFRESH FOOD GROUP, INC., 8530 WILSHIRE BOULEVARD, SUITE 450, BEVERLY HILLS CA 90211 |
| Alexander H Ware |
director |
4000 DAIN RAUSCHER PLAZA, 60 SOUTH SIXTH STREET, MINNEAPOLIS MN 55402 |
| Joseph S. Tesoriero |
officer: Chief Financial Officer |
C/O BARFRESH FOOD GROUP, INC., 8530 WILSHIRE BOULEVARD, SUITE 450, BEVERLY HILLS CA 90211 |
| Arnold Tinter |
director, officer: CFO, Secretary |
8530 WILSHIRE BLVD, SUITE 450, BEVERLY HILLS CA 90211 |
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