What is Fortune Rise Acquisition 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 Rise Acquisition's Probability of Financial Distress (%) is 0.02%.
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 Rise Acquisition's Probability of Financial Distress (%)
For the Shell Companies subindustry, Fortune Rise Acquisition'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 Rise Acquisition's Probability of Financial Distress (%) Distribution in the Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Fortune Rise Acquisition's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Fortune Rise Acquisition's Probability of Financial Distress (%) falls into.
Fortune Rise Acquisition 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 |
| = | -8.30 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
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 Rise Acquisition (Fortune Rise Acquisition) Business Description
Traded in Other Exchanges
N/A
Address
13575 58th Street North, Suite 200, Clearwater, FL, USA, 33760
Fortune Rise Acquisition Corp is a blank check company.
Executives
| Ronald Jay Pollack |
director |
1862 MCCAULEY RD, CLEARWATER FL 33765 |
| Ryan Spick |
director |
18034 N 134TH AVE, SUN CITY WEST AZ 85375 |
| Philip Goodman |
director |
6 OAKWOOD DRIVE, SEWALL'S POINT FL 34996 |
| Saba Capital Management, L.p. |
10 percent owner |
405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174 |
| Boaz Weinstein |
10 percent owner |
405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174 |
| J Richard Iler |
officer: PEO and CFO |
815 WALKER STREET, STE. 1155, HOUSTON TX 77002 |
| Payam Eshraghian |
director |
20601 TROON LANE, HUNTINGTON BEACH CA 92646 |
| Michael Davidov |
director |
60 EAST 42 STREET, NEW YORK NY 10165 |
| David Xianglin Li |
director |
3 STONER AVE, GREAT NECK NY 11021 |
| Lei Huang |
director, officer: Chief Executive Officer |
3 STONER AVE, GREAT NECK NY 10021 |
| Norman C Kristoff |
director |
C/O JAMES M. RAE, ESQ., 330 MADISON AVEUNE, 29TH FLOOR, NEW YORK NY 10017 |
| Yuanmei Ma |
officer: Chief Financial Officer |
ROOM 605A TOWER A, RAYCOM INFO TECH PARK, NO. 2 KEXUEYUAN S. RD., ZHONGGUANCUN, HAIDIAN DISTRICT, BEIJING F4 100080 |
| Lei Xu |
director, officer: President and Chairwoman |
1818 LINDA VISTA CIR., FULLERTON CA 92831 |
| Fortune Rise Sponsor Llc |
10 percent owner |
48 BRIDGE STREET, BUILDING A, METUCHEN NJ 08840 |
| Koon Keung Chan |
10 percent owner |
48 BRIDGE STREET, BUILDING A, METUCHEN NJ 08840 |
Fortune Rise Acquisition (Fortune Rise Acquisition) Headlines
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