What is Innophos 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, Innophos Holdings'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 Innophos Holdings's Probability of Financial Distress (%)
For the Specialty Chemicals subindustry, Innophos 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.
Innophos Holdings's Probability of Financial Distress (%) Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Innophos Holdings's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Innophos Holdings's Probability of Financial Distress (%) falls into.
Innophos 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 |
| = | 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).
Innophos Holdings (Innophos Holdings) Business Description
Traded in Other Exchanges
N/A
Address
259 Prospect Plains Road, Cranbury, NJ, USA, 08512
Innophos Holdings Inc is a holding company that manufactures and sells through its subsidiaries a variety of ingredients used in the production of food, beverages, dietary supplements, pharmaceuticals, and oral care products. Innophos ingredients are made primarily from specialty phosphates. The company organizes itself into three segments namely Food, Health and Nutrition; Industrial Specialties and Other. The Food, Health and Nutrition segment contribute the maximum revenue. The company operates in U.S., Canada, Mexico and other countries.
Executives
| John M Steitz |
director |
ALBEMARLE CORP, 451 FLORIDA ST, BATON ROUGE LA 70801 |
| Kim Ann Mink |
director, officer: Chairman, CEO, President |
259 PROSPECT PLAINS RD., BLDG A, CRANBURY NJ 08512 |
| Gary A Cappeline |
director |
50 E RIVERCENTER BLVD, COVINGTON KY 41012 |
| Karen R Osar |
director |
C/O WESTVACO CORP, ONE HIGH RIDGE PARK, STAMFORD CT 06905 |
| Mark Santangelo |
officer: Sr. VP, Mfg, Eng & EH&S |
15710 JOHN F. KENNEDY BLVD., SUITE 300 HOUSTON TX 77032 |
| Peter T Thomas |
director |
1000 LAKESIDE AVENUE, CLEVELAND OH 44114 |
| Hermanus Kieftenbeld |
officer: Senior VP and CFO |
259 PROSPECT PLAINS RD., BLDG A, CRANBURY NJ 08512 |
| James P. Zallie |
director |
5 WESTBROOK CORPORATE CENTER, WESTCHESTER IL 60154 |
| Randy Gress |
director, officer: CEO |
259 PROSPECT PLAINS ROAD, P O BOX 8000, CRANBURY NJ 08512-8000 |
| Stephen M Zide |
director |
BAIN CAPITAL PARTNERS, JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116 |
| Richard Heyse |
officer: VP-Chief Financial Officer |
259 PROSPECT PLAINS ROAD, BUILDING G, P O BOX 8000, CRANBURY NJ 08512-8000 |
| Bain Capital Investors Llc |
10 percent owner |
200 CLARENDON STREET, BOSTON MA 02116 |
| Bain Capital Partners Vii Lp |
10 percent owner |
JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116 |
| Bain Capital Fund Vii Llc |
10 percent owner |
JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116 |
| Bain Capital Fund Vii Lp |
10 percent owner |
JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116 |
Innophos Holdings (Innophos Holdings) Headlines
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