What is Oil States International 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, Oil States International's Probability of Financial Distress (%) is 0.14%.
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 Oil States International's Probability of Financial Distress (%)
For the Oil & Gas Equipment & Services subindustry, Oil States International'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.
Oil States International's Probability of Financial Distress (%) Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Oil States International's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Oil States International's Probability of Financial Distress (%) falls into.
Oil States International 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 |
| = | -6.56 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.14% |
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).
Oil States International (Oil States International) Business Description
Traded in Other Exchanges
Address
Three Allen Center, 333 Clay Street, Suite 4620, Houston, TX, USA, 77002
Oil States International Inc is a provider of manufactured products and services to the energy, industrial and military sectors. Manufactured products include engineered capital equipment as well as products consumed in the drilling, well construction and production of oil and natural gas. The company sells its products and services to national oil and natural gas companies, oil and natural gas companies, onshore and offshore drilling companies and other oilfield services, defense and industrial companies. The company operates through three business segments, Offshore/Manufactured Products, Well Site Services and Downhole Technologies.
Executives
| Philip Scott Moses |
officer: Executive VP,Offshore Products |
333 CLAY STREET, SUITE 4620, HOUSTON TX 77002 |
| Denise Castillo-rhodes |
director |
8847 W. SAM HOUSTON PKWY. NORTH, SUITE 200, HOUSTON TX 77040 |
| Christopher E Cragg |
officer: Vice President Tubular Service |
|
| Christopher T Seaver |
director |
3300 NORTH SAM HOUSTON PKWY EAST, HOUSTON TX 77032-3411 |
| Cindy B Taylor |
officer: SVP and CFO |
|
| Brian E. Taylor |
officer: VP, Controller & CAO |
P.O. BOX 60068, HOUSTON TX 77205-0068 |
| Lias Jeff Steen |
officer: Vice President, HR & Legal |
333 CLAY STREET, SUITE 4620, HOUSTON TX 77002 |
| Van Kleef William T |
director |
|
| Hallie A. Vanderhider |
director |
600 TRAVIS STREET, SUITE 3250, HOUSTON TX 77002 |
| Darrell E Hollek |
director |
1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380 |
| E Joseph Wright |
director |
550 WEST TEXAS AVENUE, SUITE 1300, MIDLAND TX 79701 |
| Robert L Potter |
director |
|
| Lawrence R Dickerson |
director |
15415 KATY FREEWAY STE 100, HOUSTON TX 77094 |
| B.v. Geodynamics |
10 percent owner |
C/O LIME ROCK MANAGEMENT, 274 RIVERSIDE AVENUE, SUITE 3, WESTPORT CT 06880 |
| Lloyd A Hajdik |
officer: Executive VP, CFO & Treasurer |
333 CLAY STREET, SUITE 4620, HOUSTON TX 77002 |
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