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, Lyft's Probability of Financial Distress (%) is 0.07%.
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
For the Software - Application subindustry, Lyft'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.
Lyft Probability of Financial Distress (%) Distribution
For the Software industry and Technology sector, Lyft's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Lyft's Probability of Financial Distress (%) falls into.
Lyft 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 |
| = | -7.27 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.07% |
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).
Lyft (LYFT) Business Description
Traded in Other Exchanges
Address
185 Berry Street, Suite 400, San Francisco, CA, USA, 94107
Lyft is the second-largest ride-sharing service provider in the U.S. and Canada, connecting riders and drivers over the Lyft app. Incorporated in 2013, Lyft offers a variety of rides via private vehicles, including traditional private rides, shared rides, and luxury ones. Besides ride-share, Lyft also has entered the bike- and scooter-share market to bring multimodal transportation options to users.
Executives
| Kristin Sverchek |
officer: General Counsel and Secretary |
C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107 |
| Lisa Blackwood-kapral |
officer: Chief Accounting Officer |
C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107 |
| John Patrick Zimmer |
director, officer: President |
C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107 |
| Erin Brewer |
officer: Chief Financial Officer |
MCKESSON CORPORATION, ONE POST STREET, SAN FRANCISCO CA 94104 |
| Logan Green |
director, officer: Chief Executive Officer |
C/O EBAY INC., 2025 HAMILTON AVE., SAN JOSE CA 95125 |
| Prashant Aggarwal |
director |
C/O ARLO TECHNOLOGIES, INC., 350 EAST PLUMERIA DR, SAN JOSE CA 95134 |
| Mary Agnes Wilderotter |
director |
115 ALPINE TERRACE, OAKLAND CA 94618 |
| John David Risher |
director |
C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107 |
| Dave Stephenson |
director |
C/O AIRBNB, INC., 888 BRANNAN STREET, SAN FRANCISCO CA 94103 |
| Janey Whiteside |
director |
C/O LENDINGCLUB CORPORATION, 595 MARKET ST., #200, SAN FRANCISCO CA 94105 |
| Elaine Paul |
officer: Chief Financial Officer |
C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107 |
| Ashwin Raj |
officer: Head of Rideshare |
C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107 |
| David Lawee |
director |
C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107 |
| Brian Keith Roberts |
officer: Chief Financial Officer |
C/O LYFT, INC., 185 BERRY STREET, SUITE 5000, SAN FRANCISCO CA 94107 |
| Ariel M. Cohen |
director |
C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107 |
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LYFT has been successfully added to your