What is CKX Lands 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, CKX Lands's Probability of Financial Distress (%) is 0.01%.
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 CKX Lands's Probability of Financial Distress (%)
For the Oil & Gas E&P subindustry, CKX Lands'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.
CKX Lands's Probability of Financial Distress (%) Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, CKX Lands's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where CKX Lands's Probability of Financial Distress (%) falls into.
CKX Lands 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 |
| = | -9.40 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.01% |
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).
CKX Lands (CKX Lands) Business Description
Traded in Other Exchanges
N/A
Address
2417 Shell Beach Drive, Lake Charles, LA, USA, 70601
CKX Lands Inc is a Louisiana corporation organized to receive non-producing mineral royalties spun off by a southwest Louisiana bank. It operates in three segments: Oil and Gas, Surface, and Timber. The company owns land and mineral interests and collects income through its ownership in the form of oil and gas royalties, surface leases for farming, the right of way and other uses, and timber sales. The company's oil and gas royalties are paid by the operators who own the wells and timber income is paid by the highest bidder for the timber.
Executives
| Max H. Hart |
director |
P.O. BOX 1700, OPELOUSAS LA 70571 |
| William Gray Stream |
director |
2417 SHELL BEACH DRIVE, LAKE CHARLES LA 70601 |
| Daniel J Englander |
director |
C/O AMERICA'S CARMART, 802 SOUTHEAST PLAZA AVE #200, BENTONVILLE AR 72712 |
| Scott Adams Stepp |
officer: Chief Financial Officer |
2417 SHELL BEACH DRIVE, LAKE CHARLES LA 70601 |
| Lane T Lamure |
director |
POST OFFICE BOX 11941, JACKSON WY 83002 |
| Ellington Edward Moreland Ii |
director |
1232 CYPRESS HARBOR DRIVE, LAKE CHARLES LA 70605 |
| Lee W. Boyer |
director |
127 W. BROAD ST., 4TH FLOOR, LAKE CHARLES LA 70601 |
| Donald Keith Duplechin |
director |
131 STATE STREET, LAKE CHARLES LA 70605 |
| Ottley Properties, Llc |
10 percent owner |
337 METAIRIE ROAD, SUITE 202, METAIRIE LA 70005 |
| Minvielle Iv Eugene T |
director |
P.O. BOX 51684, LAFAYETTE LA 70505 |
| Lee Bert Appleberry |
director |
315 NORTH WILCREST DRIVE, HOUSTON TX 77079 |
| Charles D Viccellio |
director, officer: Vice President & Secretary |
4113 BEAU CHENE DRIVE, LAKE CHARLES LA 70605 |
| Elizabeth Brooks Hollins |
director |
1128 BIRDNEST ROAD, LAKE CHARLES X1 70611 |
| Michael B White |
10 percent owner |
337 METAIRIE ROAD, SUITE 202, METAIRIE LA 70005 |
| Mary W Savoy |
director |
1407 ALVIN STREET, LAKE CHARLES LA 70601 |
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