Arur Footwear (BOM:513515) Probability of Financial Distress (%): 0.02% (As of Jul. 02, 2026)


What is Arur Footwear Probability of Financial Distress (%)?

Arur Footwear BOM:513515 Probability of Financial Distress (%) is 0.02% as of Jul. 02, 2026. The stock has 6 warning signs investors should review.

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, Arur Footwear's Probability of Financial Distress (%) is 0.02%.

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.

Arur Footwear  (BOM:513515) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.

Arur Footwear Probability of Financial Distress (%) Related Terms

BOM:513515 vs NKE, DECK, ONON: Probability of Financial Distress (%) Comparison

For the Footwear & Accessories subindustry, Arur Footwear'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.

Arur Footwear Probability of Financial Distress (%) vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Arur Footwear's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Arur Footwear's Probability of Financial Distress (%) falls into.


Arur Footwear 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
=-8.42

The Probability of Financial Distress (%) (PFD) was then obtianed by:

PFD=1/(1 + e^(-LPFD))*100%
=0.02%

The eight explanatory variables are:

1. NIMTAAVG = Net Income to Market Total Assets

NIMTAAVG=Net Income / Market Total Assets
=Net Income / (Market Cap + Total Liabilities)

*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

TLMTA=Total Liabilities / Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For non-financial companies, CASHMTA is measured as:

CASHMTA=Cash, Cash Equivalents, Marketable Securities / Market Total Assets

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

MB=Market Cap / Adjusted Book Equity
=Market Cap / (Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

What does a Probability of Financial Distress (%) of 0.02% mean?
Arur Footwear (BOM:513515) has a Probability of Financial Distress (%) of 0.02% as of Jul. 02, 2026.
Is Arur Footwear's Probability of Financial Distress (%) too high?
Arur Footwear's current Probability of Financial Distress (%) is 0.02%.
How does Arur Footwear's Probability of Financial Distress (%) compare to NKE and DECK?
Arur Footwear's Probability of Financial Distress (%) of 0.02% can be compared against companies in the Manufacturing - Apparel & Accessories industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Probability of Financial Distress (%) for a Manufacturing - Apparel & Accessories company?
A good Probability of Financial Distress (%) depends on the Manufacturing - Apparel & Accessories industry context. However, Probability of Financial Distress (%) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Probability of Financial Distress (%) mean?
A high Probability of Financial Distress (%) can signal that a stock is expensive relative to its fundamentals. Arur Footwear's current Probability of Financial Distress (%) is 0.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arur Footwear stock overvalued right now?
Arur Footwear (BOM:513515) has a current Probability of Financial Distress (%) of 0.02%. The stock's GF Value™ is ₹0.03, compared to a current price of ₹50.08 — trading 166834.2% above its estimated fair value. The current Probability of Financial Distress (%) is 0.02%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Probability of Financial Distress (%) calculated?
Probability of Financial Distress (%) is calculated from a company's financial statements. For Arur Footwear (BOM:513515), the current Probability of Financial Distress (%) is 0.02% as of Jul. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Arur Footwear Business Description

Address II-B / 20, First Floor Lajpat Nagar, New Delhi, IND, 110024
Arur Footwear Ltd Formerly S R Industries Ltd is a footwear manufacturer. It is engaged in producing products like cemented sports shoes, flip flops, lifestyle footwear, sports sandals, and sports shoes for the sports footwear market industry. The firm has operations in Punjab and Himachal Pradesh, India. Manufacturing facilities include: Rubber Outsole Moulding, EVA Sheet, Cutting and preparation, Stitching, Assembly line for shoes. It produces goods for various companies such as Bata, Fila, etc.