What is Mexico Fund 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, Mexico Fund'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 Mexico Fund's Probability of Financial Distress (%)
For the Asset Management subindustry, Mexico Fund'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.
Mexico Fund's Probability of Financial Distress (%) Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Mexico Fund's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Mexico Fund's Probability of Financial Distress (%) falls into.
Mexico Fund 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 |
| = | -11.50 |
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 banks, 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).
Mexico Fund (Mexico Fund) Business Description
Traded in Other Exchanges
N/A
Address
6700 Alexander Bell Drive, Suite 200, Columbia, MD, USA, 21046
Mexico Fund Inc is a United States based non-diversified, closed-end management investment company. Its investment objective is to seek long-term capital appreciation. The fund seeks to achieve its objective through investment in securities, primary in equity, listed on the Mexican Stock Exchange. Its portfolio of investment consists of investment in different sectors such as auto parts, airports, building materials, chemical products, consumer products, energy, food and other sectors. The fund provides a vehicle to investors who wish to invest in Mexican companies through a managed non-diversified portfolio as part of their overall investment program.
Executives
| Tofi Dayan |
officer: Treasurer |
77 ARISTOTELES STREET, 3RD FLOOR, POLANO O5 11560 |
| Claudia Janez |
director |
BOSQUE DE ZAPOTES 12, BOSQUES DE LAS LOMAS, CIUDAD DE MEXICO O5 11700 |
| Alberto Gomez Pimienta |
officer: Operations Vice President |
THE MEXICO FUND, INC., 1775 I STREET, NW, WASHINGTON DC 20006 |
| Alberto Osorio |
officer: Sr VP, Treasurer and CFO |
C/O MEXICO FUND, 1775 I STREET NW, WASHINGTON DC 20006 |
| Jorge Alamillo |
officer: Chief Compliance Officer |
77 ARISTOTELES STREET, 3RD FLOOR, POLANCO MEXICO DF O5 11560 |
| Edward P Djerejian |
director |
2027 SUNSET BOULEVARD, HOUSTON TX 77005 |
| Jonathan Davis Arzac |
director |
MONTE PELVOUX 220 PISO 6, LOMAS DE CHAPULTEPEC O5 11000 |
| Marc J Shapiro |
director |
J.P. MORGAN CHASE & CO., 270 PARK AVENUE, NEW YORK NY 10017 |
| Impulsora Del Fondo Mexico Sa De Cv |
other: Investment Adviser |
77 ARISTOTELES, POLANCO MEXICO DF O5 11560 |
| Robert L Knauss |
director |
5151 SAN FELIPE, SUITE 1661, HOUSTON TX 77056 |
| Emilio Carrillo Gamboa |
director |
C/O DECHERT,1775 EYE STREET NW, 1775 EYE STREET NW, WASHINGTON DC 20006 |
| Eugenio Clariond |
director |
VASCONCELOS 220 OTE., COL. RESIDENCIAL SAN AGUSTIN, SAN PEDRO GARZA GARCIA, N.L. O5 66260 |
| Gomez Pimienta Jose Luis |
director |
77 ARISTOTELES, 3RD FLOOR, POLANCO D.F. O5 11560 |
| Puche Jaime Serra |
director |
C/O DECHERT,1775 EYE STREET NW, 1775 EYE STREET NW, WASHINGTON DC 20006 |
| Jose Luis Gomez Pimienta |
director |
|
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