What is bebe stores 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, bebe stores's Probability of Financial Distress (%) is 0.18%.
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 bebe stores's Probability of Financial Distress (%)
For the Rental & Leasing Services subindustry, bebe stores'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.
bebe stores's Probability of Financial Distress (%) Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, bebe stores's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where bebe stores's Probability of Financial Distress (%) falls into.
bebe stores 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 |
| = | -6.34 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.18% |
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).
bebe stores (bebe stores) Business Description
Traded in Other Exchanges
N/A
Address
552 Wisconsin Street, San Francisco, CA, USA, 94107
bebe stores Inc was a women's apparel company that designs, develops, and produces a distinctive line of contemporary women's apparel and accessories. It also owns and operates, through subsidiaries, rent-to-own Buddy's Home Furnishings franchise stores located in states in the southeastern U.S., offering furniture, appliances, and electronics to consumers through rent-to-own agreements, along with other investments.
Executives
| Kenneth M Young |
director |
C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD., SUITE 400, WOODLAND HILLS CA 91367 |
| Manny Mashouf |
director, 10 percent owner, officer: Chairman and Founder, other: Chairman and Founder |
400 VALLEY DRIVE, BRISBANE CA 94005 |
| B. Riley Financial, Inc. |
director, 10 percent owner |
11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025 |
| Nicholas John Capuano |
director |
C/O B RILEY FINANCIAL, 11100 SANTA MONICA BLVD, STE.800, LOS ANGELES CA 90025 |
| Joseph Scirocco |
officer: Managing Director, PAO, PFO |
QUIKSILVER, INC, 15202 GRAHAM STREET, HUNTINGTON BEACH CA 92649 |
| Miller Lloyd I Iii |
10 percent owner |
|
| Walter J Parks |
officer: PRESIDENT COO INTERIM CFO |
|
| James F. Wiggett |
director, officer: CHIEF EXECUTIVE OFFICER |
BEBE STORES, INC., 10345 WEST OLYMPIC BOULEVARD, LOS ANGELES CA 90064 |
| Robert Galvin |
director |
78 GOLF LANE, RIDGEFIELD CT 06877 |
| Blair W Lambert |
director |
C/O THE GYMBOREE CORPORATION, 500 HOWARD STREET, SAN FRANCISCO CA 94105 |
| Brett Brewer |
director |
|
| Seth R Johnson |
director |
|
| Darren Horvath |
officer: CONTROLLER/ PAO |
C/O BEBE STORES, INC., 400 VALLEY DRIVE, BRISBANE CA 94005 |
| Narender Singh |
director |
400 VALLEY DRIVE, BRISBANE CA 94005 |
| Steve Birkhold |
officer: CHIEF EXECUTIVE OFFICER |
400 VALLEY DRIVE, BRISBANE CA 94005 |
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