What is Houston Wire & Cable Co 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, Houston Wire & Cable Co'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 Houston Wire & Cable Co's Probability of Financial Distress (%)
For the Industrial Distribution subindustry, Houston Wire & Cable Co'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.
Houston Wire & Cable Co's Probability of Financial Distress (%) Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Houston Wire & Cable Co's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Houston Wire & Cable Co's Probability of Financial Distress (%) falls into.
Houston Wire & Cable Co 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).
Houston Wire & Cable Co (Houston Wire & Cable Co) Business Description
Traded in Other Exchanges
N/A
Address
10201 North Loop East, Houston, TX, USA, 77029
Houston Wire & Cable Co is a distributor of electrical and mechanical wire and cable in the U.S. industrial market. The company offers products in most categories of wire and cable, including continuous and interlocked armor cable; electronic wire and cable; flexible and portable cord; instrumentation and thermocouple cable; primary and secondary aluminum distribution cable, hardware and corrosion-resistant products including inch and metric bolts, screws, nuts, washers, rivets, and hose clamps. It has three target markets: utility market, industrial market, and infrastructure market.
Executives
| Roy W Haley |
director |
COMMERCE COURT FOUR STATION SQUARE, SUITE 700, PITTSBURGH PA 15219 |
| G Gary Yetman |
director |
P.O. BOX 2139 EDWARDS CO 81632 |
| William H Sheffield |
director |
401 QUEENS QUAY WEST SUITE 104 TORONTO A6 M5V 2Y2 |
| Eric Wayne Davis |
officer: INTERIM CFO & CAO |
10201 NORTH LOOP EAST HOUSTON TX 77029 |
| Jerry Michael Zurovchak |
officer: SENIOR VP & COO |
10201 NORTH LOOP EAST HOUSTON TX 77029 |
| Christopher M. Micklas |
officer: VP & CFO |
ONE MEMORIAL CITY PLAZA, 800 GESSNER ROAD, SUITE 875, HOUSTON TX 77024 |
| Pokluda James L Iii |
director |
10201 N. LOOP EAST HOUSTON TX 77029 |
| Sandford W. Rothe |
director |
1 GOOSEBERRY LANE CHERRY HILLS VILLAGE CO 80113 |
| David Nierenberg |
director, 10 percent owner |
19605 NE 8TH STREET, CAMAS WA 98607 |
| Nierenberg Investment Management Co |
10 percent owner |
19605 NE 8TH ST, CAMAS WA 98607 |
| Margaret Laird |
director |
1283 BLACKBIRD COURT BOULDER CO 80303 |
| Robert L Reymond |
director |
10721 W. 118TH TERRACE OVERLAND PARK KS 66210 |
| Michael T Campbell |
director |
HOUSTON WIRE & CABLE COMPANY, 10201 NORTH LOOP EAST, HOUSTON TX 77029 |
| Mark A Ruelle |
director |
C/O EVERGY, INC., 1200 MAIN STREET, KANSAS CITY MO 64105 |
| Nicol G Graham |
officer: VP, CFO, TREASURER & SECRETARY |
10201 NORTH LOOP EAST HOUSTON TX 77029 |
Houston Wire & Cable Co (Houston Wire & Cable Co) Headlines
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