What is Medical Properties Trust 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, Medical Properties Trust's Probability of Financial Distress (%) is 0.33%.
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 Medical Properties Trust's Probability of Financial Distress (%)
For the REIT - Healthcare Facilities subindustry, Medical Properties Trust'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.
Medical Properties Trust's Probability of Financial Distress (%) Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Medical Properties Trust's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Medical Properties Trust's Probability of Financial Distress (%) falls into.
Medical Properties Trust 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 |
| = | -5.71 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.33% |
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).
Medical Properties Trust (Medical Properties Trust) Business Description
Traded in Other Exchanges
Address
1000 Urban Center Drive, Suite 501, Birmingham, AL, USA, 35242
Medical Properties Trust Inc is a healthcare facility REIT. The company operates one segment, which owns and leases healthcare facilities. The vast majority of Medical's revenue is generated in the United States, followed by Germany and the United Kingdom. The company considers merger and acquisition investment as a component of its operational growth strategy. It provides financing for a variety of facilities that require funds for acquisitions, sale-leasebacks, new developments, and expansion projects.
Executives
| Aldag Edward K Jr |
director, officer: Chairman, President & CEO |
1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242 |
| R Steven Hamner |
director, officer: Executive Vice President & CFO |
|
| Larry H Portal |
officer: SVP, Senior Advisor to the CEO |
1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242 |
| Rosa Handley Hooper |
officer: SVP of Operations & Asst. Sec. |
1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242 |
| James Kevin Hanna |
officer: Senior VP, Controller & CAO |
1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242 |
| Michael G Stewart |
officer: Exec. VP, Gen Counsel, Sec |
1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242 |
| Emily Webster Murphy |
director |
601 N FAIRFAX ST, ALEXANDRIA VA 22314 |
| Emmett E Mclean |
officer: EVP, Secretary, and COO |
1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242 |
| Caterina Ardon Mozingo |
director |
PO BOX 33, MONTGOMERY AL 36101-0033 |
| G Steven Dawson |
director |
CIRA CENTRE, 2929 ARCH STREET, 17TH FLOOR, PHILADELPHIA PA 19104-2870 |
| Elizabeth N Pitman |
director |
1901 SIXTH AVE NORTH, SUITE 1400, BIRMINGHAM AL 35203 |
| William G Mckenzie |
director, officer: Vice Chairman of the Board |
1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242 |
| Thompson C Reynolds Iii |
director |
227 WEST TRADE STREET, SUITE 900, CHARLOTTE NC 28202 |
| Sherry A Kellett |
director |
|
| Daniel Paul Sparks |
director |
1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242 |
Medical Properties Trust (Medical Properties Trust) Headlines
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