What is Technical Communications 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, Technical Communications's Probability of Financial Distress (%) is 36.45%.
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 Technical Communications's Probability of Financial Distress (%)
For the Communication Equipment subindustry, Technical Communications'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.
Technical Communications's Probability of Financial Distress (%) Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Technical Communications's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Technical Communications's Probability of Financial Distress (%) falls into.
Technical Communications 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 |
| = | -0.56 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 36.45% |
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).
Technical Communications (Technical Communications) Business Description
Traded in Other Exchanges
N/A
Address
100 Domino Drive, Concord, MA, USA, 01742-2892
Technical Communications Corp designs, develops, manufactures, distributes, and markets communications security equipment. The company produces and supplies several custom-designed, special-purpose, and standard secure communications products for both domestic and international customers. Its products consist of voice, data, facsimile encryptors and video networks for military, government and corporate/industrial applications. In addition to product sales, it generates revenues from contract engineering services for certain government agencies, domestic and foreign, and commercial entities.
Executives
| Ralph M Norwood |
director |
111 SOUTH WORCESTER STREET, NORTON MA 02766 |
| Guild Carl H Jr |
director, officer: CEO |
|
| Thomas E Peoples |
director |
|
| Francisco F Blanco |
director |
1915 TOWNE CENTRE BLVD, SUITE 309, ANNAPOLIS MD 21401 |
| Mitchell Briskin |
director |
|
| Michael P Malone |
officer: Chief Financial Officer |
|
| Paul D Sonkin |
10 percent owner, other: see footnote #1 |
145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022 |
| Hummingbird Value Fund Lp |
10 percent owner, other: see footnote #1 |
145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022 |
| Hummingbird Management Llc |
10 percent owner, other: see footnote #1 |
145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022 |
| Hummingbird Microcap Value Fund Lp |
10 percent owner, other: see footnote #1 |
145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022 |
| Hummingbird Capital Llc |
10 percent owner, other: see footnote #1 |
145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022 |
| Tarsier Nanocap Value Fund, Lp |
10 percent owner, other: see footnote #1 |
C/O HUMMINGBIRD MANAGEMENT, LLC, 145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022 |
| Hummingbird Concentrated Fund Lp |
10 percent owner, other: see footnote #1 |
145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022 |
| Robert T Lessard |
director |
|
| Brown David A B |
director |
|
Technical Communications (Technical Communications) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TCCO has been successfully added to your