What is Cincinnati Bell 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, Cincinnati Bell's Probability of Financial Distress (%) is 0.00%.
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 Cincinnati Bell's Probability of Financial Distress (%)
For the Telecom Services subindustry, Cincinnati Bell'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.
Cincinnati Bell's Probability of Financial Distress (%) Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Cincinnati Bell's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Cincinnati Bell's Probability of Financial Distress (%) falls into.
Cincinnati Bell 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 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
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).
Cincinnati Bell (Cincinnati Bell) Business Description
Traded in Other Exchanges
N/A
Address
221 East Fourth Street, Cincinnati, OH, USA, 45202
Cincinnati Bell Inc provides wireline and wireless telecommunication services in Cincinnati, Ohio, and surrounding markets in Kentucky and Indiana. It operates business through two segments. Entertainment and Communications segment provides high speed data, video, and voice solutions to consumers and businesses over an expanding fiber network and a legacy copper network. IT Services and Hardware segment provides sale and service of efficient, end-to-end communications and IT systems and solutions across the U.S., Canada, and Europe. The company generates a substantial portion of its revenues by delivering voice and data services over access lines.
Executives
| Jakki L. Haussler |
director |
221 EAST FOURTH STREET, CINCINNATI OH 45202 |
| Martin Yudkovitz |
director |
P O BOX 2301, CINCINNATI OH 45201 |
| Craig F Maier |
director |
P O BOX 2301, CINCINNATI OH 45202 |
| Meredith J Ching |
director |
822 BISHOP ST., HONOLULU HI 96813 |
| Dods Walter A Jr |
director |
822 BISHOP ST., HONOLULU HI 96813 |
| Theodore H. Torbeck |
director, Director |
221 EAST FOURTH STREET, CINCINNATI OH 45202 |
| Lynn A Wentworth |
director |
CINCINNATI BELL INC, P O BOX 2301, CINCINNATI OH 45201 |
| Russel Paul Mayer |
director |
221 EAST FOURTH STREET, CINCINNATI OH 45202 |
| Leigh R. Fox |
officer: Chief Executive Officer |
221 EAST FOURTH STREET, CINCINNATI OH 45202 |
| Joshua T. Duckworth |
officer: Vice President & Treasurer |
P O BOX 2301, CINCINNATI OH 45201 |
| Christopher J Wilson |
officer: VP, General Counsel |
P O BOX 2301, CINCINNATI OH 45201 |
| Thomas E Simpson |
officer: Chief Operating Officer |
221 EAST FOURTH STREET, CINCINNATI OH 45202 |
| Andrew R. Kaiser |
officer: Chief Financial Officer |
221 EAST FOURTH STREET, CINCINNATI OH 45202 |
| Christi H Cornette |
officer: Chief Culture Officer |
221 EAST FOURTH STREET, CINCINNATI OH 45202 |
| John W. Eck |
director |
221 EAST FOURTH STREET, CINCINNATI OH 45202 |
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