What is Freescale Semiconductor 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, Freescale Semiconductor'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 Freescale Semiconductor's Probability of Financial Distress (%)
For the Semiconductors subindustry, Freescale Semiconductor'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.
Freescale Semiconductor's Probability of Financial Distress (%) Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Freescale Semiconductor's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Freescale Semiconductor's Probability of Financial Distress (%) falls into.
Freescale Semiconductor 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).
Freescale Semiconductor (Freescale Semiconductor) Business Description
Traded in Other Exchanges
N/A
Address
Freescale Semiconductor Ltd was incorporated in Delaware on December 3, 2003. The Company provides embedded processors such as microcontrollers and digital networking processors. Its embedded processors, along with its analog, sensor and radio frequency devices, as well as a full suite of software and design tools, it provides integrated embedded processing solutions. The Company's business is organized around five principal product groups: Microcontrollers, Digital Networking, Automotive Microcontrollers, Analog and Sensors, and Radio Frequency. The Company's embedded processor products include Microcontrollers, single and multicore MPUs, Digital Signal Controllers, applications processors and Digital Signal Processors. It also offers Radio Frequency, power management, motor drivers, high voltage actuators, analog, mixed-signal devices and precision sensors. The Company's Communications Processors product portfolio includes 32-bit and 64-bit offerings ranging from a single core to 28- and 45-nanometer multicore QorIQ communications processors. It's Microcontrollers product portfolio ranges from ultra-low power, low-end 8-bit products to higher performance 16-bit and 32-bit products with on-board flash memory such as the Qorivva product line. Its wireless products utilize and support multiple standards and frequencies, including the IEEE standard 802.15.4, and sub-1 GHz solutions in its solutions for medical devices, smart meters and smart energy, consumer appliances, Radio Frequency remote controls and home automation. The Company provides Applications Processors such as ARM-based i.MX application processors with integrated audio, video and graphics capability. Its Digital Signal Processors product portfolio includes single-core to multicore based on the StarCore architecture. Its Analog and Mixed-Signal products portfolio includes driving actuators such as in motors, valves, and lights, switching large currents, regulating power to electronic components in a system, charging and cell balancing batteries and providing precision sense and control interfaces for complex analog systems. The Company's Xtrinsic smart sensor platforms combine inertial sensors and embedded processors with connectivity and power management supported by a reference software toolset. The Company's Radio Frequency power portfolio includes solutions from 1 watt to more than 1 kilowatt. Its low power portfolio provides a mix of Radio Frequency small signal and low power products. The Company sells its products directly to OEMs, distributors, original design manufacturers and contract manufacturers. It owns and operates five manufacturing facilities, of which three are wafer fabrication facilities and two are assembly and test facilities.
Executives
| Blackstone Family Investment Partnership (cayman) V L.p. |
director, 10 percent owner |
THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154 |
| Tc Group Cayman Investment Holdings, L.p. |
10 percent owner |
C/O WALKERS CORPORATE SERVICES LIMITED, 190 ELGIN AVENUE, GEORGE TOWN, GRAND CAYMAN E9 KY1-9001 |
| Carlyle Group Inc. |
10 percent owner |
C/O THE CARLYLE GROUP, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004 |
| Carlyle Group Management L.l.c. |
10 percent owner |
C/O THE CARLYLE GROUP L.P., 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505 |
| Carlyle Holdings Ii Gp L.l.c. |
10 percent owner |
C/O THE CARLYLE GROUP L.P., 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505 |
| Carlyle Holdings Ii L.l.c. |
10 percent owner |
C/O THE CARLYLE GROUP L.P., 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505 |
| Tc Group Cayman Investment Holdings Sub L.p. |
10 percent owner |
C/O WALKER CORPORATE SERVICES LIMITED, 190 ELGIN AVENUE, GEORGE TOWN, GRAND CAYMAN E9 KY1-9001 |
| Blackstone Family Gp Llc |
director, 10 percent owner |
C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154 |
| Blackstone Capital Partners (cayman) V L.p. |
director, 10 percent owner |
THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154 |
| Blackstone Management Associates (cayman) V L.p. |
director, 10 percent owner |
THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154 |
| Blackstone Holdings Iii Gp Management L.l.c. |
director, 10 percent owner |
C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154 |
| Blackstone Lr Associates (cayman) V Ltd. |
director, 10 percent owner |
THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154 |
| Blackstone Participation Partnership (cayman) V L.p. |
director, 10 percent owner |
THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154 |
| Bcp (cayman) V-s L.p. |
director, 10 percent owner |
THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154 |
| Blackstone Family Investment Partnership (cayman) V-smd L.p. |
director, 10 percent owner |
345 PARK AVENUE, NEW YORK NY 10154 |
Freescale Semiconductor (Freescale Semiconductor) Headlines
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