What is La-Z-Boy 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, La-Z-Boy's Probability of Financial Distress (%) is 0.02%.
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 La-Z-Boy's Probability of Financial Distress (%)
For the Furnishings, Fixtures & Appliances subindustry, La-Z-Boy'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.
La-Z-Boy's Probability of Financial Distress (%) Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, La-Z-Boy's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where La-Z-Boy's Probability of Financial Distress (%) falls into.
La-Z-Boy 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 |
| = | -8.43 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
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).
La-Z-Boy (La-Z-Boy) Business Description
Traded in Other Exchanges
Address
One La-Z-Boy Drive, Monroe, MI, USA, 48162-5138
La-Z-Boy Inc is a U.S.-based company that manufactures, distributes, and retails upholstery furniture products. It is a producer of reclining chairs and distributors of residential furniture in the U.S. The company chiefly operates in the United States but also has secondary operations in Canada and other countries. The company's reportable segments include the Wholesale segment, which manufactures and imports upholstered furniture; and Retail, which sells upholstered and case goods furniture to the end consumer. The majority of the company's revenue is derived from its Wholesale segment. Some of the core brands of the firm include England, Kincaid, American Drew, and Hammary.
Executives
| Janet Kerr |
director |
50 CASTILIAN DR, GOLETA CA 93117 |
| Raza Syed Haider |
director |
ONE LA-Z-BOY DRIVE, MONROE MI 48162 |
| Rebecca M Reeder |
officer: Pres., Retail LZB Furn. Gall. |
1 LA-Z-BOY DRIVE, MONROE MI 48162 |
| Mark Stephen Lavigne |
director |
533 MARYVILLE UNIVERSITY DRIVE, ST. LOUIS MO 63141 |
| Katherine E. Vanderjagt |
officer: VP & Chief HR Officer |
1 LA-Z-BOY DRIVE, MONROE MI 48162 |
| Robert Ii Sundy |
officer: SVP & Chief Commercial Officer |
1 LA-Z-BOY DRIVE, MONROE MI 48162 |
| Carol Young Lee |
officer: VP & Chief Information Officer |
1 LA-Z-BOY DRIVE, MONROE MI 48162 |
| Terrence James Linz |
officer: President, La-Z-Boy Retail |
1 LA-Z-BOY DRIVE, MONROE MI 48162 |
| Bryan Keith Wilson |
officer: President Int'l & Joybird |
6 BELL STREET, MAIDENHEAD, BERKS X0 SL6 1BU |
| Michael Adam Leggett |
officer: Sr VP & Chief Supply Chain Off |
1 LA-Z-BOY DRIVE, MONROE MI 48162 |
| Kurt L Darrow |
director, officer: Chairman, President & CEO |
ONE LA-Z-BOY DRIVE, MONROE MI 48162 |
| Erika L. Alexander |
director |
10400 FERNWOOD RD., BETHESDA MD 20817 |
| Otis S Sawyer |
officer: Senior Vice President |
ONE LA-Z-BOY DRIVE, MONROE MI 48162 |
| Raphaell Z. Richmond |
officer: VP, GC & Chief Compliance Off |
ONE LA-Z-BOY DRIVE, MONROE MI 48162 |
| Jennifer Lynn Mccurry |
officer: Chief Accounting Officer |
ONE LA-Z-BOY DRIVE, MONROE MI 48162 |
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