What is Gabelli Global Utility &ome Trust 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, Gabelli Global Utility &ome Trust'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 Gabelli Global Utility &ome Trust's Probability of Financial Distress (%)
For the Asset Management subindustry, Gabelli Global Utility &ome Trust'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.
Gabelli Global Utility &ome Trust's Probability of Financial Distress (%) Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Gabelli Global Utility &ome Trust's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Gabelli Global Utility &ome Trust's Probability of Financial Distress (%) falls into.
Gabelli Global Utility &ome Trust 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 |
| = | -8.71 |
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 banks, 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).
Gabelli Global Utility &ome Trust (Gabelli Global Utility &ome Trust) Business Description
Traded in Other Exchanges
Address
One Corporate Center, Rye, NY, USA, 10580-1422
Gabelli Global Utility & Income Trust is a non-diversified, closed-end management investment company. The Fund's objective is to seek a consistent level of after-tax total return. It primarily invests in stocks of companies involved to a substantial extent in providing products, services, or equipment for the generation or distribution of electricity, gas, or water and infrastructure operations, and in equity securities including preferred securities of companies in other industries, in each case in such securities that are expected to pay periodic dividends.
Executives
| Mario J Gabelli |
officer: Chairman and CIO |
191 MASON STREET, GREENWICH CT 06830 |
| Kuni Nakamura |
director |
1 MARTIN BUTLER COURT, RYE NY 10580 |
| Calgary Avansino |
director |
C/O GAMCO INVESTORS, INC., ONE CORPORATE CENTER, RYE NY 10580 |
| Peter D. Goldstein |
officer: Secretary |
249 ROYAL PALM WAY, SUITE 503, PALM BEACH FL 33480 |
| James P Conn |
director |
|
| Leslie Fahrenkopf Foley |
director |
C/O GAMCO INVESTORS, INC., ONE CORPORATE CENTER, RYE NY 10580 |
| John Chester Ball |
officer: Treasurer |
800 CONNECTICUT AVENUE, NORWALK CT 06854 |
| Agnes Mullady |
officer: Treasurer |
ONE CORPORATE CENTER, RYE NY 10580 |
| Bruce N Alpert |
officer: President |
C/O GAMCO INVESTORS, INC., ONE CORPORATE CENTER, RYE NY 10580 |
| Urso Mario D |
director |
65 EATON SQUARE, LONDON SW UK X0 041101225 |
| Anthony J Colavita |
director |
ONE CORPORATE CENTER, RYE NY 10580 |
| Salvatore M Salibello |
director |
ONE CORPORATE CENTER, RYE NY 10580 |
| James E Mckee |
officer: Secretary |
C/O GABELLI ASSET MANAGEMENT INC, ONE CORPORATE CENTER, RYE NY 16580 |
| Vincent D Enright |
director |
ONE CORPORATE CENTER, RYE NY 10580 |
| Karl Otto Pohl |
director |
ONE CORPORATE CENTER, RYE NY 10580 |
Gabelli Global Utility &ome Trust (Gabelli Global Utility &ome Trust) Headlines
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