What is US Ecology 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, US Ecology'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 US Ecology's Probability of Financial Distress (%)
For the Waste Management subindustry, US Ecology'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.
US Ecology's Probability of Financial Distress (%) Distribution in the Waste Management Industry
For the Waste Management industry and Industrials sector, US Ecology's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where US Ecology's Probability of Financial Distress (%) falls into.
US Ecology 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 |
| = | -10.59 |
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).
US Ecology (US Ecology) Business Description
Traded in Other Exchanges
N/A
Address
101 S. Capitol Boulevard, Suite 1000, Boise, ID, USA, 83702
US Ecology Inc operates as an environmental service provider to commercial and government entities. The company's operating segments include Waste Solutions, Field Services, and Energy Waste. Waste Solutions provides a broad range of specialty material management services including transportation, recycling, treatment and disposal of hazardous, non-hazardous and radioactive waste; Field Services, provides specialty field services and total waste management solutions to commercial and industrial facilities and to government entities, and Energy Waste provides energy-related services and waste disposal services predominately to upstream energy customers.
Executives
| Simon G Bell |
officer: EVP & COO |
300 E. MALLARD SUITE 300 BOISE ID 83706 |
| Mack L Hogans |
director |
WEYERHAEUSER CO, P O B 9777, FEDERAL WAY WA 98063 |
| E Renae Conley |
director |
414 SILVER AVE SW MS 1275, ALBUQUERQUE NM 87102-3289 |
| Burke Richard L. Jr. |
director |
90 FORT WADE ROAD, PONTE VEDRA FL 32081 |
| Katina Dorton |
director |
US ECOLOGY, INC., 251 E. FRONT ST., SUITE 400, BOISE ID 83702 |
| Stephen A Romano |
director |
|
| Jeffrey R Feeler |
director, officer: President & CEO |
300 E. MALLARD DR. SUITE 300 BOISE ID 83706 |
| Daniel Fox |
director |
300 E. MALLARD DR., SUITE 300 BOISE ID 83706 |
| John T. Sahlberg |
director |
C/O BOISE CASCADE, L.L.C., 1111 WEST JEFFERSON STREET, SUITE 300, BOISE ID 83702-5389 |
| Jfl-nrcg Holdings Iv, Llc |
10 percent owner |
110 EAST 59TH STREET, 27TH FLOOR NEW YORK NY 10022 |
| Jfl Equity Investors Iv, L.p. |
10 percent owner |
J.F. LEHMAN & COMPANY, INC. 110 EAST 59TH STREET NEW YORK NY 10022 |
| Jfl-ses Partners, Llc |
10 percent owner |
110 EAST 59TH STREET, 27TH FLOOR NEW YORK NY 10022 |
| Jfl-nrc Int. (ja) Holdings, Llc |
10 percent owner |
110 EAST 59TH STREET, 27TH FLOOR NEW YORK NY 10022 |
| Jfl-nrc Partners, Llc |
10 percent owner |
110 EAST 59TH STREET, 27TH FLOOR NEW YORK NY 10022 |
| Jfl-nrc-ses Partners, Llc |
10 percent owner |
110 EAST 59TH STREET, 27TH FLOOR NEW YORK NY 10022 |
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