What is Marten Transport 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, Marten Transport's Probability of Financial Distress (%) is 0.03%.
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 Marten Transport's Probability of Financial Distress (%)
For the Trucking subindustry, Marten Transport'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.
Marten Transport's Probability of Financial Distress (%) Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Marten Transport's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Marten Transport's Probability of Financial Distress (%) falls into.
Marten Transport 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 |
| = | -8.22 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
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).
Marten Transport (Marten Transport) Business Description
Traded in Other Exchanges
N/A
Address
129 Marten Street, Mondovi, WI, USA, 54755
Marten Transport Ltd is a temperature-sensitive truckload carrier in the United States. It is engaged in transporting and distributing food and other consumer packaged goods which requires a temperature-controlled or insulated environment. The company operates through four segments including Truckload, Dedicated, Intermodal, and Brokerage. It generates maximum revenue from the Truckload segment. The Truckload segment provides a combination of regional short-haul and medium-to-long-haul full-load transportation services.
Executives
| Randall John Baier |
officer: Exec. VP & Chief Tech. Officer |
129 MARTEN STREET, MONDOVI WI 54755 |
| Thomas J Winkel |
director |
|
| Patricia L Jones |
director |
C/O 505 HIGHWAY 169 NORTH, SUITE 1000, PLYMOUTH MN 55441 |
| Larry B Hagness |
director |
|
| James J Hinnendael |
officer: Chief Financial Officer |
129 MARTEN STREET, MONDOVI WI 54755 |
| John H Turner |
officer: Vice President of Sales |
129 MARTEN STREET, MONDOVI WI 54755 |
| Robert L Demorest |
director |
2235 VALE CREST, MINNEAPOLIS MN 55422 |
| Jerry M Bauer |
director |
|
| Douglas Paul Petit |
officer: President |
129 MARTEN STREET, MONDOVI WI 54755 |
| Timothy M Kohl |
officer: President |
129 MARTEN STREET, MONDOVI WI 54755 |
| Randolph L Marten |
director, 10 percent owner, officer: Chairman and President |
129 MARTEN STREET, MONDOVI WI 54755 |
| Kathleen P Iverson |
director |
5900 GOLDEN HILLS DRIVE, GOLDEN VALLEY MN 55416 |
| Timothy P Nash |
officer: Exec. VP of Sales & Marketing |
|
| Ronald Richard Booth |
director |
129 MARTEN STREET, MONDOVI WI 54755 |
| G Larry Owens |
director |
|
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