What is Dorman Products 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, Dorman Products's Probability of Financial Distress (%) is 0.03%.
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 Dorman Products's Probability of Financial Distress (%)
For the Auto Parts subindustry, Dorman Products'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.
Dorman Products's Probability of Financial Distress (%) Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Dorman Products's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Dorman Products's Probability of Financial Distress (%) falls into.
Dorman Products 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 |
| = | -8.04 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
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).
Dorman Products (Dorman Products) Business Description
Traded in Other Exchanges
N/A
Address
3400 East Walnut Street, Colmar, PA, USA, 18915
Dorman Products Inc is a supplier of original equipment parts for automobiles. The company produces automotive and heavy-duty replacement parts, automotive hardware, brake parts, and fasteners for the automotive and heavy-duty aftermarket. The products are sold under the Dorman brand and its sub-brands OE Solutions, Help!, Conduct-Tite, and HD Solutions through aftermarket retailers, regional and local warehouse distributors, specialty markets, and salvage yards. It operates as a single reportable operating segment, namely, the sale of replacement and upgrades parts in the motor vehicle aftermarket industry, serving passenger cars, light-, medium-, and heavy-duty trucks as well as specialty vehicles. The company operates primarily in the United States.
Executives
| G. Michael Stakias |
director |
C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915 |
| Lindsay Hunt |
officer: Pres and CEO, Specialty Vehicl |
3400 EAST WALNUT STREET, COLMAR PA 18915 |
| Brian Borradaile |
officer: SVP, Strategy & Corp Dev |
3400 EAST WALNUT STREET, COLMAR PA 18915 |
| Eric Luftig |
officer: Senior Vice President, Product |
3400 EAST WALNUT STREET, COLMAR PA 18915 |
| Jeffery Darby |
officer: SVP, Sales |
C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915 |
| Steven L Berman |
director, 10 percent owner, officer: President, COO |
|
| James Darrell Thomas |
director |
3700 JUNEAU AVENUE, MILWAUKEE WI 53208 |
| John J Gavin |
director |
GMS INC., 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084 |
| Donna M. Long |
officer: SVP, CIO |
3400 EAST WALNUT STREET, COLMAR PA 18915 |
| John Mcknight |
officer: SVP, Operations |
3400 EAST WALNUT STREET, COLMAR PA 19103 |
| Paul E Anderson |
officer: President, Heavy Duty |
3400 EAST WALNUT STREET, COLMAR PA 18915 |
| Scott Leff |
officer: SVP, CHRO |
3400 EAST WALNUT STREET, COLMAR PA 18915 |
| Michael Kealey |
officer: SVP, Product |
C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915 |
| Lisa M Bachmann |
director |
300 PHILLIPI ROAD, COLUMBUS OH 43228 |
| Joseph P. Braun |
officer: SVP and General Counsel |
C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915 |
Dorman Products (Dorman Products) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
DORM has been successfully added to your