What is Zions Bancorp NA 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, Zions Bancorp NA'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 Zions Bancorp NA's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Zions Bancorp NA'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.
Zions Bancorp NA's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Zions Bancorp NA's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Zions Bancorp NA's Probability of Financial Distress (%) falls into.
Zions Bancorp NA 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 banks, 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).
Zions Bancorp NA (Zions Bancorp NA) Business Description
Traded in Other Exchanges
Address
One South Main Street, Salt Lake City, UT, USA, 84133-1109
Zions Bancorporation is a regional U.S. bank with core operations that span 11 states. The bank is headquartered in Salt Lake City and does business primarily in the Western and Southwestern United States. Zions primarily focuses on providing banking services to small and midsize businesses, with the majority of its loans focused on commercial and commercial real estate lending.
Executives
| Keith D Maio |
officer: President of subsidiary bank |
ONE SOUTH MAIN, SUITE 1134, SALT LAKE CITY UT 84111 |
| Steven Dan Stephens |
officer: Executive Vice President |
ONE SOUTH MAIN STREET, 15TH FLOOR, SALT LAKE CITY UT 84133-1109 |
| Scott J Mclean |
officer: Executive Vice President |
4400 POST OAK PARKWAY, 4TH FL, HOUSTON TX 77027 |
| A Scott Anderson |
officer: Executive Vice President |
ONE SOUTH MAIN, SUITE 1134, SALT LAKE CITY UT 84111 |
| Randy R Stewart |
officer: Exec VP |
1 S MAIN STREET, 11TH FLOOR, SALT LAKE CITY UT 84133 |
| Bruce K Alexander |
officer: Exec VP and, Pres. of Subsidiary |
ONE SOUTH MAIN, SUITE 1134, SALT LAKE CITY UT 84111 |
| Alan M Forney |
officer: Exec VP & Pres. Of Subsidiary |
ONE S MAIN STREET, 11TH FL, SALT LAKE CITY UT 84133 |
| Mark Richard Young |
officer: Exec VP, other: Pres. of Subidiary |
ONE SOUTH MAIN STREET, 15TH FLOOR, SALT LAKE CITY UT 84133-1109 |
| Thomas E Laursen |
officer: Sr. Vice President &, General Counsel |
ONE SOUTH MAIN, SUITE 1134, SALT LAKE CITY UT 84111 |
| Derek Steward |
officer: Executive Vice President |
1 S MAIN ST, 11TH FL, SALT LAKE CITY UT 84133-1109 |
| Shannon R. Drage |
officer: Senior Vice President |
1 S MAIN STREET, 11TH FL, SALT LAKE CITY UT 84133-1109 |
| Rebecca K Robinson |
officer: Executive Vice President |
ONE SOUTH MAIN STREET, 15TH FLOOR, SALT LAKE CITY X1 84133 |
| Claire A Huang |
director |
1 S MAIN STREET, 11TH FL, SALT LAKE CITY UT 84133 |
| Harris H Simmons |
director, officer: Chairman, President, & CEO |
ZIONS BANCORPORATION, ONE MAIN STREET, SUITE 1134, SALT LAKE CITY UT 84111 |
| Paul E. Burdiss |
officer: Executive Vice President, other: & Chief Financial Officer |
ONE SOUTH MAIN STREET, 15TH FLOOR, SALT LAKE CITY UT 84133 |
Zions Bancorp NA (Zions Bancorp NA) Headlines
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