What is ITEX 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, ITEX'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 ITEX's Probability of Financial Distress (%)
For the Capital Markets subindustry, ITEX'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.
ITEX's Probability of Financial Distress (%) Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, ITEX's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where ITEX's Probability of Financial Distress (%) falls into.
ITEX 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 |
| = | -11.51 |
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).
ITEX (ITEX) Business Description
Traded in Other Exchanges
N/A
Address
13555 South East 36th Street, Suite 210, Bellevue, WA, USA, 98006
ITEX Corp operates a marketplace in which products and services are exchanged by marketplace members utilizing virtual currency. Its Marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of the United States dollars and Canadian dollars (USD or cash). It administers the marketplace and provides record-keeping and payment transaction processing services for its members. They generate revenue by charging members percentage-based transaction fees, association fees, and other fees assessed in United States dollars and Canadian dollars.
Executives
| Lion Fund, L.p. |
10 percent owner |
19100 RIDGEWOOD PKWY, SUITE 1200, SAN ANTONIO TX 78259 |
| Biglari Capital Corp. |
10 percent owner, other: See Explanation of Responses |
19100 RIDGEWOOD PKWY, SUITE 1200, SAN ANTONIO TX 78259 |
| Kevin H Callan |
director |
3326 160TH AVE. SE, STE. 100, BELLEVUE WA 98008 |
| Timothy R Morones |
director |
3326 160TH AVE SE STE 100, BELLEVUE WA 98008 |
| Sardar Biglari, |
10 percent owner, other: See Explanation of Responses |
C/O BIGLARI HOLDINGS INC., 19100 RIDGEWOOD PKWY, SUITE 1200, SAN ANTONIO TX 78259 |
| Biglari Holdings Inc. |
10 percent owner, other: See Explanation of Responses |
17802 IH 10 WEST, SUITE 400, SAN ANTONIO TX 78257 |
| Western Sizzlin Corp |
10 percent owner, other: See Explanation of Responses |
317 KIMBALL AVENUE NW, ROANOKE VA 24016 |
| G. Andrew Cooke |
10 percent owner |
3110 9TH ROAD N. APT. B, ARLINGTON VA 22201 |
| David Polonitza |
10 percent owner |
54B SANDRA CIRCLE, APT B1, WESTFIELD NJ 07090 |
| Pagidipati Family Limited Partnership |
10 percent owner |
2955 SE 3RD COURT, OCALA FL 34471 |
| Corner Market Capital Corp |
10 percent owner |
BOX 36, #1620 - 1140 WEST PENDER STREET, VANCOUVER A1 V6E-4G1 |
| Sanjeev Parsad |
10 percent owner |
21-355 DUTHIE AVENUE, BURNABY A1 V5A-2P3 |
| Alnesh Mohan |
10 percent owner |
702-583 BEACH CRESCENT, VANCOUVER A1 V6Z-3E6 |
| Corner Market Capital U.s., Inc. |
10 percent owner |
BOX 36, #1620 - 1140 WEST PENDER STREET, VANCOUVER A1 V6E-4G1 |
| Mpic Fund I Lp |
10 percent owner |
1199 WEST PENDER STREET, SUITE 680, VANCOUVER A1 V6E 2R1 |
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