Bar Pacific Group Holdings (HKSE:08432) Probability of Financial Distress (%) : 0.19% (As of Jun. 20, 2024)

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What is Bar Pacific Group Holdings 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, Bar Pacific Group Holdings's Probability of Financial Distress (%) is 0.19%.

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 Bar Pacific Group Holdings's Probability of Financial Distress (%)

For the Restaurants subindustry, Bar Pacific Group Holdings'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.

Bar Pacific Group Holdings's Probability of Financial Distress (%) Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Bar Pacific Group Holdings's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Bar Pacific Group Holdings's Probability of Financial Distress (%) falls into.

Bar Pacific Group Holdings 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

-6.27

The Probability of Financial Distress (%) (PFD) was then obtianed by:

PFD	=	1	/	(1 + e^(-LPFD))	*	100%
	=	0.19%

The eight explanatory variables are:

1. NIMTAAVG = Net Income to Market Total Assets

NIMTAAVG	=	Net Income	/	Market Total Assets
	=	Net Income	/	(Market Cap + Total Liabilities)

*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

TLMTA

Total Liabilities

Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For non-financial companies, CASHMTA is measured as:

CASHMTA

Cash, Cash Equivalents, Marketable Securities

Market Total Assets

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

MB	=	Market Cap	/	Adjusted Book Equity
	=	Market Cap	/	(Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

Bar Pacific Group Holdings (HKSE:08432) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.

Bar Pacific Group Holdings Probability of Financial Distress (%) Related Terms

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Bar Pacific Group Holdings (HKSE:08432) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Bar Pacific Group Holdings Ltd (HKSE:08432) » Definitions » Probability of Financial Distress (%)

Comparable Companies

Traded in Other Exchanges

N/A

Address

2G Hok Yuen Street, Room D2, 11th Floor, Phase 2, Hang Fung Industrial Building, Hunghom, Kowloon, Hong Kong, HKG

Website

http://www.barpacific.com.hk

Bar Pacific Group Holdings Ltd, along with its subsidiaries, is engaged in the operation of a chain of bars in Hong Kong. The company operates its restaurants under the brand's Bar Pacific and Pacific. The company operates in the business segment Operations of bars and Property investment principally in Hong Kong. The group derives a majority of its revenue from the Operation of the bars segment which involves the sales of beverages and light refreshments in bars in Hong Kong. the company also provides venues for private parties, business events, and shooting as well.

Executives

Chan Tsz Tung	2101 Beneficial owner
Chan Tsz Kiu Teresa	2101 Beneficial owner
Chan Ching Mandy	2101 Beneficial owner
Chan Wai	2101 Beneficial owner
Tse Ying Sin Eva	2101 Beneficial owner

Bar Pacific Group Holdings (HKSE:08432) Headlines

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