What is Universal Security Instruments 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, Universal Security Instruments'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 Universal Security Instruments's Probability of Financial Distress (%)
For the Security & Protection Services subindustry, Universal Security Instruments'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.
Universal Security Instruments's Probability of Financial Distress (%) Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Universal Security Instruments's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Universal Security Instruments's Probability of Financial Distress (%) falls into.
Universal Security Instruments 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).
Universal Security Instruments (Universal Security Instruments) Business Description
Traded in Other Exchanges
N/A
Address
11407 Cronhill Drive, Suite A, Owings Mills, MD, USA, 21117
Universal Security Instruments Inc is a U.S based manufacturer and distributor of safety and security devices in the Peoples Republic of China . The company markets a line of residential smoke and carbon monoxide alarms under the trade names UNIVERSAL and USI Electric. It also markets products to the electrical distribution trade such as electrical and lighting distributors as well as manufactured housing companies. Its product portfolio consists of smoke and fire alarms, carbon monoxide alarms, multi-gas alarms, universal smoke sensing technology, and plug-in alarms.
Executives
| Bitnile Holdings, Inc. |
10 percent owner |
11411 SOUTHERN HIGHLANDS PARKWAY, SUITE 240, LAS VEGAS NV 89141 |
| North Star Investment Management Corp. |
other: SEE NOTE 2 BELOW |
20 N. WACKER DRIVE, SUITE # 1416, CHICAGO IL 60606 |
| North Star Micro Cap Fund |
10 percent owner |
80 ARKAY DRIVE, SUITE 110, HAUPPAUGE NY 11788 |
| Ira Bormel |
director |
11407 CRONHILL DRIVE, SUITE A, OWINGS MILLS MD 21117 |
| Harvey B Grossblatt |
director, officer: President, CEO |
7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117 |
| Ronald A Seff |
director |
7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117 |
| Howard B Silverman |
director |
7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117 |
| Cary Luskin |
director |
7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117 |
| Michael L Kovens |
10 percent owner |
6 REGENCY CT, BALTIMORE MD 21208 |
| James Ballard Huff |
officer: Chief Financial Officer |
7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117 |
| Ronald S Lazarus |
10 percent owner |
7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117 |
| Stephen C Knepper |
director, 10 percent owner, officer: Chairman, CEO |
7-A GWYNNS MILL COURT, OWINGS MILLS MD 21117 |
Universal Security Instruments (Universal Security Instruments) Headlines
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