What is Fortune Brands Innovations 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, Fortune Brands Innovations'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 Fortune Brands Innovations's Probability of Financial Distress (%)
For the Building Products & Equipment subindustry, Fortune Brands Innovations'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.
Fortune Brands Innovations's Probability of Financial Distress (%) Distribution in the Construction Industry
For the Construction industry and Industrials sector, Fortune Brands Innovations's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Fortune Brands Innovations's Probability of Financial Distress (%) falls into.
Fortune Brands Innovations 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 |
| = | -8.06 |
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).
Fortune Brands Innovations (Fortune Brands Innovations) Business Description
Traded in Other Exchanges
Address
520 Lake Cook Road, Suite 300, Deerfield, IL, USA, 60015-5611
Fortune Brands Innovations is a leading home and security products company that operates two segments. The company's $2.6 billion plumbing segment, led by the Moen brand, sells faucets, showers, and other plumbing fixtures, and the $2.2 billion outdoors and security segment sells entry doors under the Therma-Tru brand name, Fiberon-branded patio decking, and locks and other security devices under the Master Lock and SentrySafe brand names.
Executives
| Ann F Hackett |
director |
|
| Amee Chande |
director |
520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015 |
| Stephanie L. Pugliese |
director |
170 COUNTRYSIDE DRIVE, BELLEVILLE WI 53508 |
| David V. Barry |
officer: EVP & CFO |
FORTUNE BRANDS INNOVATIONS, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015 |
| Lee John Dong Gu |
officer: EVP Chief Strategy & Growth |
520 LAKE COOK ROAD, DEERFIELD IL 60015 |
| Ron Wilson |
officer: EVP, Chief Supply Chain |
FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015 |
| Hiranda S Donoghue |
officer: EVP Chief Legal & Secretary |
520 LAKE COOK ROAD, DEERFIELD IL 60015 |
| Cheri M Phyfer |
officer: EVP, Group President |
520 LAKE COOK ROAD, DEERFIELD IL 60015 |
| Sheri Grissom |
officer: EVP, CHRO & Transformation |
13000 WEST SILVER SPRING DRIVE, BUTLER WI 53007 |
| Nicholas I. Fink |
director, officer: Chief Executive Officer |
510 LAKE COOK ROAD, DEERFIELD IL 60015 |
| Patrick D Hallinan |
officer: EVP & CFO |
FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015 |
| Mackay A D David |
director |
|
| Martin Thomas |
officer: SVP Ops &Supply Chain Strategy |
FORTUNE BRANDS HOME & SECURITY, INC., SUITE 300, DEERFIELD IL 60015 |
| May Russell |
officer: SVP & CDO |
520 LAKE COOK ROAD, DEERFIELD IL 60015 |
| Danny Luburic |
officer: Vice President & Controller |
FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015 |
Fortune Brands Innovations (Fortune Brands Innovations) Headlines
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