What is IDT 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, IDT's Probability of Financial Distress (%) is 0.02%.
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 IDT's Probability of Financial Distress (%)
For the Telecom Services subindustry, IDT'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.
IDT's Probability of Financial Distress (%) Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, IDT's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where IDT's Probability of Financial Distress (%) falls into.
IDT 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 |
| = | -8.75 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
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).
IDT (IDT) Business Description
Traded in Other Exchanges
Address
520 Broad Street, Newark, NJ, USA, 07102
IDT Corp is a multinational holding company. It primarily operates in the telecommunications and payment industries. It has four reportable business segments, Fintech, National Retail Solutions & net2phone and Traditional Communications, The Fintech segment is comprised of National Retail Solutions (NRS), an operator of a nationwide point of sale (POS) network providing payment processing, digital advertising, transaction data, and ancillary services, and BOSS Money, a provider of international money remittance and related value/payment transfer services. The net2phone segment provides unified cloud communications and telephony services to business customers.
Executives
| Marcelo Fischer |
officer: Chief Acct. Offcr. &Controller |
IDT CORP, 520 BROAD STREET, NEWARK NJ 07102 |
| Eric F. Cosentino |
director |
C/O IDT CORPORATION, 520 BROAD STREET, NEWARK NJ 07102 |
| Joyce J Mason |
director, officer: SVP and Secretary |
IDT CORP, 520 BROAD STREET, NEWARK NJ 07102 |
| Nadine Shea |
officer: EVP of GLOBAL HUMAN RESOURCES |
C/O IDT CORPORATION, 520 BROAD STREET, NEWARK NJ 07102 |
| Howard S Jonas |
director, 10 percent owner, officer: Chairman of the Board |
|
| Bill Pereira |
officer: EVP of Finance |
520 BROAD STREET, NEWARK NJ 07102 |
| David Wartell |
officer: CHIEF TECHNOLOGY OFFICER |
C/O IDT CORPORATION, 520 BROAD STREET, NEWARK NJ 07102 |
| Mitch Silberman |
officer: CAO & Controller |
C/O IDT CORPORATION, 520 BROAD STREET, NEWARK NJ 07102 |
| Liora Stein |
director |
C/O IDT CORPORATION, 520 BROAD STREET, NEWARK NJ 07102 |
| Judah Schorr |
director |
C/O IDT CORPORATION, 520 BROAD STREET, NEWARK NJ 07102 |
| Hsj 2019 Idt Annuity Trust Ii |
10 percent owner |
C/O IDT CORPORATION, 520 BROAD STREET, NEWARK NJ 07102 |
| Anthony S Davidson |
officer: SVP - Technology |
C/O IDT CORPORATION, 520 BROAD STREET, NEWARK NJ 07102 |
| Bathgate Lawrence E Ii |
director |
C/O IDT CORPORATION, 520 BROAD STREET, NEWARK NJ 07102 |
| Michael Chenkin |
director |
C/O IDT CORPORATION, 520 BROAD STREET, NEWARK NJ 07102 |
| Menachem Ash |
officer: EVP of Strategic&Legal Affairs |
C/O IDT CORPORATION, 520 BROAD STREET, NEWARK NJ 07102 |
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