What is Finish Line 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, Finish Line'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 Finish Line's Probability of Financial Distress (%)
For the Specialty Retail subindustry, Finish Line'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.
Finish Line's Probability of Financial Distress (%) Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Finish Line's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Finish Line's Probability of Financial Distress (%) falls into.
Finish Line 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).
Finish Line (Finish Line) Business Description
Traded in Other Exchanges
N/A
Address
Finish Line is a United States-based specialty retailer that is principally engaged in the sale of athletic footwear, apparel, and accessories, with presence in the United States, Puerto Rico, and the District of Columbia. The company operates business through physical stores and digital formats under two brands: Finish Line and JackRabbit. Finish Line is a mall-based retailer offering brand names including Nike, Brand Jordan, Adidas, Under Armour, and Puma. JackRabbit is a lifestyle community-based retailer offering brand names, such as Brooks, Asics, Nike, Saucony, New Balance, and others. The company also operates unbranded stores at Macy's, without Finish Line signage. The company generates the majority of its total net sales from the Finish Line division.
Executives
| Torrence Boone |
director |
3308 N MITTHOEFFER, INDIANAPOLIS IN 46235 |
| Richard P Crystal |
director |
THE FINISH LINE 3308 N. MITTHOEFFER RD. INDIANAPOLIS IN 46235 |
| William P Carmichael |
director |
3308 N. MITTHOEFFER ROAD, INDIANAPOLIS IN 46235 |
| Imran Jooma |
officer: EVP, Div Pres, Omni Strat |
3333 BEVERLY ROAD HOFFMAN ESTATES IL 60179 |
| Alan H Cohen |
director, 10 percent owner, officer: Chairman of the Board |
3308 MITTHOEFFER RD, C/O THE FINISH LINE INC, INDIANAPOLIS IN 46236 |
| Schultze Asset Management, Llc |
10 percent owner |
3000 WESTCHESTER AVENUE, PURCHASE NY 10577 |
| George J Schultze |
10 percent owner |
C/O SCHULTZE ASSET MANAGEMENT, LLC, 3000 WESTCHESTER AVENUE, PURCHASE NY 10577 |
| Kevin S Wampler |
officer: Executive Vice President - CFO |
3308 N MITTHOEFFER RD, INDIANAPOLIS IN 46235 |
| Jeffrey H Smulyan |
director |
|
Finish Line (Finish Line) Headlines
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