What is Know Labs 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, Know Labs's Probability of Financial Distress (%) is 1.05%.
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 Know Labs's Probability of Financial Distress (%)
For the Scientific & Technical Instruments subindustry, Know Labs'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.
Know Labs's Probability of Financial Distress (%) Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Know Labs's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Know Labs's Probability of Financial Distress (%) falls into.
Know Labs 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 |
| = | -4.54 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 1.05% |
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).
Know Labs (Know Labs) Business Description
Traded in Other Exchanges
N/A
Address
500 Union Street, Suite 810, Seattle, WA, USA, 98101
Know Labs Inc is a medical diagnostic. The company is focused on the development, marketing, and sales of proprietary technologies that are capable of uniquely identifying or authenticating almost any substance or material using electromagnetic energy to record, detect, and identify the signature of the substance or material known as Bio-RFID and ChromaID technologies. It is developing a wearable device that will measure blood glucose without fingersticks or microneedles.
Executives
| Todd Baszucki |
10 percent owner |
519 LOMA ALTA ROAD, CARMEL CA 93923 |
| Jessica English |
officer: Chief Marketing Officer |
34 GRANADA DRIVE, CORTE MADERA CA 94925 |
| Leonardo Mouta Trautwein |
officer: Chief Marketing Officer |
PO BOX 2021, PARK CITY UT 84060 |
| Takesako Ichiro John Paul |
director |
500 UNION STREET, SUITE 420, SEATTLE WA 98101 |
| Peter J Conley |
officer: Chief Financial Officer |
3658 PRICE HILLS DRIVE, SAINT GEORGE UT 84790 |
| Steven T Kent |
officer: Chief Product Officer |
185 CHANNEL ST, APT 545, SAN FRANCISCO CA 94158 |
| William Arthur Owens |
director |
C/O CENTURYLINK, INC., 100 CENTURYLINK DRIVE, MONROE LA 71203 |
| Ronald P Erickson |
director, officer: Chairman |
9437 NE CORAL COURT, BAINBRIDGE ISLAND WA 98110 |
| Jon Pepper |
director |
500 UNION STREET, SUITE 810, SEATTLE WA 98101 |
| Phillip Bosua |
director, 10 percent owner, officer: CEO and President |
500 UNION STREET, SUITE 810, SEATTLE WA 98101 |
| Jeff T Wilson |
officer: CFO |
|
| Jeffrey Richard Kruse |
other: Pres. of TransTech Systems Inc |
12142 NE SKY LANE, SUITE 130, AURORA OR 97002 |
| Todd Martin Sames |
officer: V.P. of Business Development |
500 UNION STREET, SUITE 420, SEATTLE WA 98101 |
| Richard Mander |
officer: VP Product Mgmnt & Technology |
500 UNION STREET, STE 406, SEATTLE WA 98101 |
| Bonderson Paul R Jr |
director |
|
Know Labs (Know Labs) Headlines
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