What is Martha Stewart Living Omnimedia 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, Martha Stewart Living Omnimedia'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 Martha Stewart Living Omnimedia's Probability of Financial Distress (%)
For the Publishing subindustry, Martha Stewart Living Omnimedia'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.
Martha Stewart Living Omnimedia's Probability of Financial Distress (%) Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Martha Stewart Living Omnimedia's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Martha Stewart Living Omnimedia's Probability of Financial Distress (%) falls into.
Martha Stewart Living Omnimedia 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 |
| = | 0.00 |
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).
Martha Stewart Living Omnimedia (Martha Stewart Living Omnimedia) Business Description
Traded in Other Exchanges
N/A
Address
Martha Stewart Living Omnimedia Inc is an integrated media and merchandising company providing consumers with inspiring lifestyle content and well-designed, high-quality products. The Company is organized into three business segments: Publishing, Broadcasting and Merchandising. This combination enables it to cross-promote its content and products. Its Publishing segment consists of operations related to magazine and book publishing and digital distribution, mainly through its website, marthastewart.com. Its Broadcasting business segment consists of operations relating to the production of television programming, the domestic and international distribution of its library of programming in existing and repurposed formats. Its Merchandising segment consists of operations related to the design of merchandise and related packaging, collateral and advertising materials, and the licensing of various proprietary trademarks in connection with retail programs conducted through a number of retailers and manufacturers. The Company generally owns the copyrights in the programs it produce for television and radio distribution. In 2013, Martha Stewart's Cooking School season 2 and Martha Bakes seasons 1 and 2 aired on PBS. On January 31, 2013, the Company entered into a new two-year agreement with Sirius XM Radio to produce approximately 10 hours of original programming each week. This agreement with Sirius XM Radio replaces its historical Martha Stewart Living Radio channel with a daily radio show hosted by Martha Stewart, and other MSLO talent, on SiriusXM Stars. In 2010, the Company launched the Martha Stewart Living product line at The Home Depot, which is currently available at all of The Home Depots stores in the United States and Canada, as well as on homedepot.com and Home Decorators Collection catalog business. It competes with the internet businesses of the stores and other websites that sell similar retail goods.
Executives
| Kenneth P West |
officer: EVP, Chief Financial Officer |
10 EAST 40TH STREET, NEW YORK NY 10016 |
| Margaret Mary Smyth |
director |
PO BOX 33428, ST. PAUL MN 55133 |
| Daniel W Dienst |
director, officer: Chief Executive Officer |
325 N. LASALLE ST., SUITE 550, CHICAGO IL 60610 |
| William A Roskin |
director |
1515 BROADWAY, NEW YORK NY 10036 |
| Martha Stewart Family Limited Partnership |
10 percent owner |
|
| Allison C Hoffman |
officer: EVP, General Counsel and Secy |
315 EAST 68TH STREET, NEW YORK NY 10065 |
| Martha Stewart |
director, 10 percent owner, officer: Chief Creative Officer |
C/O MARTHA STEWART LIVING OMNIMEDIA INC, 20 WEST 43RD STREET, NEW YORK NY 10036 |
| Robert W Peterson |
director |
800 NICOLLET MALL, J1012057, MINNEAPOLIS MN 55402-7020 |
| Lisa Gersh |
officer: President, COO |
C/O HASBRO, INC., 1011 NEWPORT AVENUE, PAWTUCKET RI 02861 |
| Todd J Slotkin |
director |
35 EAST 62ND STREET, NEW YORK NY 10021 |
| Charles Koppelman |
director |
1330 AVENUE OF THE AMERICAS, SUITE 800, NEW YORK NY 10019 |
| Dan E Walker |
director |
6501 LEGACY DRIVE PLANO TX 75024 |
| Michael W Kramer |
director |
6301 FITCH PATH, NEW ALBANY OH 43054 |
| Robin L Marino |
officer: President/CEO Merchandising |
MARTHA STEWART LIVING OMNIMEDIA, INC. 11 WEST 42ND STREET, 25TH FLOOR NEW YORK NY 10036 |
| Michael Goldstein |
director |
3 EAST 84 STREET, NEW YORK NY 10028 |
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