What is Park-Ohio Holdings 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, Park-Ohio Holdings's Probability of Financial Distress (%) is 0.08%.
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 Park-Ohio Holdings's Probability of Financial Distress (%)
For the Specialty Industrial Machinery subindustry, Park-Ohio Holdings'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.
Park-Ohio Holdings's Probability of Financial Distress (%) Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Park-Ohio Holdings's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Park-Ohio Holdings's Probability of Financial Distress (%) falls into.
Park-Ohio Holdings 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 |
| = | -7.11 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.08% |
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).
Park-Ohio Holdings (Park-Ohio Holdings) Business Description
Traded in Other Exchanges
N/A
Address
6065 Parkland Boulevard, Cleveland, OH, USA, 44124
Park-Ohio Holdings Corp is a company, engaged in industrial supply chain logistics and diversified manufacturing business. It operates in three business segments namely Supply Technologies, Assembly Components and Engineered Products. Geographically, the business of the group is amplifying across the region of the United States, Asia, Europe, Canada, Mexico and others. The company derives most of the revenue from the Supply Technologies segment which provides the customer with total supply management services such as engineering and design support, supplier selection, quality assurance, barcoding, product packaging and tracking, just-in-time and point-of-use delivery and electronic billing services for a range of production components.
Executives
| James W Wert |
director |
|
| Patrick W Fogarty |
officer: Director Corporate Development |
|
| Robert D Vilsack |
officer: Secretary & General Counsel |
|
| Moore Dan T Iii |
director |
|
| Hanna Howard W Iv |
director |
6065 PARKLAND BLVD., CLEVELAND OH 44124 |
| Matthew V Crawford |
director, 10 percent owner, officer: President & COO |
|
| Edward F Crawford |
director, 10 percent owner, officer: CEO, COB |
|
| Patrick V Auletta |
director |
23000 EUCLID AVE, EUCLID OH 44117 |
| Steven H Rosen |
director |
6065 PARKLAND BOULEVARD, MAYFIELD HEIGHTS OH 44124 |
| John D Grampa |
director |
MATERION CORPORATION, 6070 PARKLAND BLVD., MAYFIELD HEIGHTS OH 44124 |
| Ronna Romney |
director |
|
| Mixon Aaron Malachi Iii |
director |
800 SUPERIOR AVENUE, SUITE 1800, CLEVELAND OH 44107 |
| W Scott Emerick |
officer: VP & CFO |
29400 LAKELAND BOULEVARD, WICKLIFFE OH 44092 |
| Kevin R Greene |
director |
|
| Jeffrey L Rutherford |
officer: Vice President & CFO |
15885 SPRAGUE RD, STRONGSVILLE OH 44136-1799 |
Park-Ohio Holdings (Park-Ohio Holdings) Headlines
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