What is Latch 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, Latch'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 Latch's Probability of Financial Distress (%)
For the Software - Application subindustry, Latch'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.
Latch's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, Latch's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Latch's Probability of Financial Distress (%) falls into.
Latch 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).
Latch (LTCH) Business Description
Traded in Other Exchanges
N/A
Address
508 West 26th Street, Suite 6G, New York, NY, USA, 10001
Latch Inc makes spaces better places to live, work, and visit through a system of software, devices, and services. It specializes in keyless entry security systems to open and manage every door in an apartment building from a smartphone. LatchOS enables spaces across North America, including in 44 states and Canada, from affordable housing in Baltimore, to historic buildings in Manhattan, to luxury towers in the Midwest. Latch works with real estate developers, large and small, ranging from the largest real estate companies in the world to passionate local owners.
Executives
| Keyes John J Iv |
officer: Interim CEO |
C/O LATCH, INC., 508 WEST 26TH STREET, SUITE 6G, NEW YORK NY 10001 |
| Marc E Landy |
officer: Interim CFO |
C/O LATCH, INC., 508 WEST 26TH STREET, SUITE 6G, NEW YORK NY 10001 |
| Junji Nakamura |
officer: Chief Accounting Officer |
C/O LATCH, INC., 508 WEST 26TH STREET, SUITE 6G, NEW YORK NY 10001 |
| Barry Schaeffer |
officer: Interim CFO & Treasurer |
C/O LATCH, INC., 508 WEST 26TH STREET, SUITE 6G, NEW YORK NY 10001 |
| Josh Wolfe |
10 percent owner |
C/O LUX HEALTH TECH ACQUISITION CORP., 920 BROADWAY, 11TH FLOOR, NEW YORK NY 10010 |
| Garth Mitchell |
officer: CFO & Treasurer |
508 WEST 26TH STREET, SUITE 6G, NEW YORK NY 10001 |
| Raju Rishi |
director |
508 WEST 26TH STREET, SUITE 6G, NEW YORK NY 10001 |
| Ali Hussain |
officer: Chief Operating Officer |
508 WEST 26TH STREET, SUITE 6G, NEW YORK NY 10001 |
| Michael Brian Jones |
officer: Chief Technology Officer |
508 WEST 26TH STREET, SUITE 6G, NEW YORK NY 10001 |
| J. Allen Smith |
director |
508 WEST 26TH STREET, SUITE 6G, NEW YORK NY 10001 |
| Andrew Sugrue |
director |
508 WEST 26TH STREET, SUITE 6G, NEW YORK NY 10001 |
| Luke Schoenfelder |
director, officer: Chief Executive Officer |
508 WEST 26TH STREET, SUITE 6G, NEW YORK NY 10001 |
| Reynolds James Madison Iv |
10 percent owner |
C/O LATCH, INC., 508 WEST 26TH STREET, SUITE 6G, NEW YORK NY 10001 |
| Avenir Latch Investors, Llc |
10 percent owner |
C/O AVENIR MANAGEMENT COMPANY, LLC, 135 FIFTH AVENUE, 7TH FLOOR, NEW YORK NY 10010 |
| Avenir Management Company, Llc |
10 percent owner |
817 BROADWAY, 12TH FLOOR, NEW YORK NY 10003 |
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