What is NEW GERMANY FUND 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, NEW GERMANY FUND'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 NEW GERMANY FUND's Probability of Financial Distress (%)
For the Asset Management subindustry, NEW GERMANY FUND'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.
NEW GERMANY FUND's Probability of Financial Distress (%) Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, NEW GERMANY FUND's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where NEW GERMANY FUND's Probability of Financial Distress (%) falls into.
NEW GERMANY FUND 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 |
| = | -11.73 |
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 banks, 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).
NEW GERMANY FUND (NEW GERMANY FUND) Business Description
Traded in Other Exchanges
N/A
Address
875 Third Avenue, New York, NY, USA, 10022-6225
NEW GERMANY FUND INC is the United States based non-diversified, closed-end management investment company. As the investment objective, the fund seeks long-term capital appreciation through investment in middle market German equities. The fund's portfolio of investment includes investment in different sectors such as the industrials, information technology, material, consumer discretionary, Communication Services, Financials, Consumer Staples, Real Estate, Utilities, healthcare, Energy and others. Its portfolio is geographically diversified across the Netherlands, Germany, and Italy.
Executives
| Bernhard Koepp |
director |
C/O ANJIE LAROCCA-LEWIS, DWS, 875 THIRD AVENUE, NEW YORK NY 10022 |
| Christopher Pleister |
director |
C/O ANJIE LAROCCA, DEUTSCHE BANK, 60 WALL STREET, NEW YORK NY 10005 |
| Juan Barriobero |
other: Deputy Portfolio Manager |
C/O ANJIE LAROCCA, DWS, 875 THIRD AVENUE, NEW YORK NY 10022 |
| Daniel Hann |
other: Deputy Portfolio Manager |
C/O ANJIE LAROCCA, DWS, 875 THIRD AVENUE, NEW YORK NY 10022 |
| Alexander Lippert |
other: Deputy Portfolio Manager |
C/O ANJIE LAROCCA, DWS, 875 THIRD AVENUE, NEW YORK NY 10022 |
| Holger Hatje |
director |
C/O ANJIE LAROCCA, DWS, 875 THIRD AVENUE, NEW YORK NY 10022 |
| Fiona Flannery |
director |
C/O ANJIE LAROCCA-LEWIS, DWS, 875 THIRD AVENUE, NEW YORK NY 10022 |
| Leon A Cappel |
other: Deputy Portfolio Manager |
C/O ANJIE LAROCCA-LEWIS, DWS, 875 THIRD AVENUE, NEW YORK NY 10022 |
| Walter C. Dostmann |
director |
C/O ANJIE LAROCCA, DEUTSCHE BANK, 60 WALL STREET, NEW YORK NY 10005 |
| Christian Rijs |
officer: AML Compliance Officer |
C/O DWS, 875 THIRD AVENUE, NEW YORK NY 10022 |
| Helen Delman |
other: Section 16 Officer |
C/O DWS, 875 THIRD AVENUE, NEW YORK NY 10022 |
| Michelle S. Goveia |
officer: AML Compliance Officer |
C/O ANJIE LAROCCA, DEUTSCHE BANK, 60 WALL STREET, NEW YORK NY 10005 |
| Christian Zugel |
director |
TWO BRIDGE AVENUE, SUITE 322, RED HOOK NJ 07701 |
| Alyssa Asbury |
officer: Assistant Secretary |
C/O DWS, 875 THIRD AVENUE, NEW YORK NY 10022 |
| Wolfgang Helmut Leoni |
director |
C/O ANJIE LAROCCA, DEUTSCHE BANK, 60 WALL STREET, NEW YORK NY 10005 |
NEW GERMANY FUND (NEW GERMANY FUND) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
GF has been successfully added to your