What is Surgical Care Affiliates 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, Surgical Care Affiliates'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 Surgical Care Affiliates's Probability of Financial Distress (%)
For the Medical Care Facilities subindustry, Surgical Care Affiliates'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.
Surgical Care Affiliates's Probability of Financial Distress (%) Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Surgical Care Affiliates's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Surgical Care Affiliates's Probability of Financial Distress (%) falls into.
Surgical Care Affiliates 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).
Surgical Care Affiliates (Surgical Care Affiliates) Business Description
Traded in Other Exchanges
N/A
Address
Surgical Care Affiliates Inc was incorporated on March 23, 2007. It is a provider of solutions to physicians, health plans and health systems to optimize surgical care. It operates surgical facilities in the United States, which includes 185 ambulatory surgery centers ("ASCs") and seven surgical hospitals. Its business model is focused on building strategic relationships with physicians, health plans and health systems to invest in, develop and optimize facilities in an aligned economic model that enables access to high-quality care at lower cost. It owns and operates facilities in partnership with 45 health systems and approximately 2,800 physician partners. It has six operating segments, which are aggregated into one reportable segment. Its six operating segments are generally organized geographically. Its operations consist of ownership and management of ASCs and surgical hospitals. Its affiliated facilities provide the space, equipment and medical support staff necessary for physicians to perform non-emergency surgical procedures. Its typical ASC is a freestanding facility with fully-equipped operating and procedure rooms and ancillary areas for reception, preparation, recovery and administration. Its surgical hospitals provide medical services similar to those provided by ASCs and can also accommodate more complex procedures, some of which require patients to stay overnight. It faces competition from other providers of ambulatory surgical care in developing ASC and surgical hospital joint ventures, acquiring existing facilities, attracting patients and negotiating commercial health plan contract pricing. It is subject to various federal, state and local laws and regulations relating to the protection of the environment and human health and safety, including those governing the management and disposal of hazardous substances and wastes, the cleanup of contaminated sites and the maintenance of a safe workplace.
Executives
| Kenneth R Goulet |
director |
C/O SHARECARE, INC., 255 EAST PACES FERRY ROAD NE, SUITE 700, ATLANTA GA 30305 |
| Sharad Mansukani |
director |
C/O AGILON HEALTH, INC., 6210 E HWY 290, SUITE 450, AUSTIN TX 78723 |
| Joseph T Clark |
officer: Chief Development Officer |
C/O SURGICAL CARE AFFILIATES, INC., 520 LAKE COOK ROAD, SUITE 250, DEERFIELD IL 60015 |
| Michael A. Rucker |
officer: Chief Operating Officer |
C/O SURGICAL CARE AFFILIATES, INC., 520 LAKE COOK ROAD, SUITE 250, DEERFIELD IL 60015 |
| David Bonderman |
10 percent owner |
301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102 |
| James G Coulter |
10 percent owner |
301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102 |
| Tpg Group Holdings (sbs) Advisors, Inc. |
10 percent owner |
C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102 |
| Jeffrey K. Rhodes |
director |
C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102 |
| Todd Benjamin Sisitsky |
director |
TPG CAPITAL, 345 CALIFORNIA STREET, SUITE 3800, SAN FRANCISCO CA 94104 |
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