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Delhaize Group (Delhaize Group) Probability of Financial Distress (%) : 0.00% (As of May. 05, 2024)


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What is Delhaize 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, Delhaize Group'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 Delhaize Group's Probability of Financial Distress (%)

For the Grocery Stores subindustry, Delhaize 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.

Delhaize Group's Probability of Financial Distress (%) Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Delhaize Group's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Delhaize Group's Probability of Financial Distress (%) falls into.


Delhaize 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
=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

NIMTAAVG=Net Income / Market Total Assets
=Net Income / (Market Cap + Total Liabilities)

*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

TLMTA=Total Liabilities / Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For non-financial companies, CASHMTA is measured as:

CASHMTA=Cash, Cash Equivalents, Marketable Securities / Market Total Assets

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

MB=Market Cap / Adjusted Book Equity
=Market Cap / (Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

Delhaize Group  (NYSE:DEG) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.

Delhaize Group Probability of Financial Distress (%) Related Terms

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Delhaize Group (Delhaize Group) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Delhaize Group SA (NYSE:DEG) » Definitions » Probability of Financial Distress (%)
Comparable Companies
TSE:8028 TSX:WN TSX:MRU TPE:2912 LSE:OCDO XPAR:CA OSTO:ICA SGX:D01 XBRU:COLR TSX:EMP.A OHEL:KESKOA CASY LSE:MRW LSE:SBRY LSE:89VS XPAR:CO IST:BIMAS SHSE:603866 TSX:L WAR:DNP
Traded in Other Exchanges
N/A
Address
Website
http://www.delhaizegroup.com
Delhaize Group SA was founded in Belgium in 1867. It operates food supermarkets. Its conducts its retail operations through its businesses in the United States; Belgium and the Grand Duchy of Luxembourg, collectively as Delhaize Belgium; Greece, Romania and Serbia, collectively as Southeastern Europe; and Indonesia. Its store network also includes other store formats such as proximity, cash and carry and specialty stores. Its competitors include international, national, regional and local supermarket chains, supercenters, independent grocery stores, specialty food stores, warehouse club stores, retail drug chains, convenience stores, membership clubs, general merchandisers, discount retailers and restaurants. Food retail chains generally compete on the basis of location, quality of products, service, price, product variety, store condition and e-commerce offer. The Company's brands include Delhaize, Taste of Inspirations, 365, Care, Delhaize Eco and Delhaize Bio.