What is The Dixie Group 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, The Dixie Group's Probability of Financial Distress (%) is 0.33%.
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 The Dixie Group's Probability of Financial Distress (%)
For the Textile Manufacturing subindustry, The Dixie Group'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.
The Dixie Group's Probability of Financial Distress (%) Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, The Dixie Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where The Dixie Group's Probability of Financial Distress (%) falls into.
The Dixie Group 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 |
| = | -5.72 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.33% |
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).
The Dixie Group (The Dixie Group) Business Description
Traded in Other Exchanges
Address
475 Reed Road, Dalton, GA, USA, 30720
The Dixie Group Inc is carpet and rug mills company. Its businesses consist principally of marketing, manufacturing and selling finished carpet, rugs, and luxury vinyl tile in the domestic floor covering market. The company has one reportable segment, Floor covering. The company sells floor covering products in both residential and commercial applications. Additionally, the company provides manufacturing support to its carpet businesses through its separate processing operations. Its business is primarily concentrated in areas of the soft floor covering market segment. The company provides its products under the brand of Fabrica, Masland Residential, Dixie Home, Atlas Carpet Mills, Masland Contract, and Hospitality.
Executives
| Lowry F Kline |
director |
PO BOX 2007, DALTON GA 30722 |
| Allen L Danzey |
officer: Chief Financial Officer |
PO BOX 2007, DALTON GA 30722-2007 |
| Frierson Daniel K Jr |
officer: President, Masland Residential |
PO BOX 2007, DALTON GA 30722 |
| Jon A Faulkner |
officer: VP Planning & Development |
PO BOX 2007, DALTON GA 30722 |
| Daniel K Frierson |
director, 10 percent owner, officer: Chairman of the Board & CEO |
PO BOX 2007, DALTON GA 30722 |
| W Derek Davis |
officer: VP - Human Resources |
PO BOX 2007, DALTON GA 30722 |
| Murrey John W Iii |
director |
4100 COCA-COLA PLAZA, CHARLOTTE NC 28211 |
| Thomas Martin Nuckols |
officer: Executive Vice President |
475 REED ROAD, DALTON GA 30720 |
| Blue William F Jr |
director |
PO BOX 2007, DALTON GA 30722 |
| David E Hobbs |
officer: VP - Pres Masland Contract |
716 BILL MYLES DRIVE, SARALAND AL 36571 |
| Paul B Comiskey |
officer: Vice Pres/President Dixie Home |
PO BOX 2007, DALTON GA 30722 |
| D Eugene Lasater |
officer: Controller |
2208 S. HAMILTON STREET, DALTON GA 30721 |
| Starr T Klein |
officer: Secretary |
PO BOX 25107, CHATTANOOGA TN 37422-5107 |
| Michael L. Owens |
director |
PO BOX 2007, DALTON GA 30722 |
| Vinson Lee Martin |
officer: VP-President Masland Contract |
716 BILL MYLES DRIVE, SARALAND AL 36571 |
The Dixie Group (The Dixie Group) Headlines
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