What is MGT Capital Investments 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, MGT Capital Investments's Probability of Financial Distress (%) is 68.71%.
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 MGT Capital Investments's Probability of Financial Distress (%)
For the Capital Markets subindustry, MGT Capital Investments'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.
MGT Capital Investments's Probability of Financial Distress (%) Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, MGT Capital Investments's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where MGT Capital Investments's Probability of Financial Distress (%) falls into.
MGT Capital Investments 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 |
| = | 0.79 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 68.71% |
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).
MGT Capital Investments (MGT Capital Investments) Business Description
Traded in Other Exchanges
N/A
Address
150 Fayetteville Street, Suite 1110, Raleigh, NC, USA, 27601
MGT Capital Investments Inc is a U.S. based Bitcoin miner company that conducts cryptocurrency activities at a company-owned and managed Bitcoin mining facility in LaFayette, Georgia. Located adjacent to a utility substation, the several-acre property has access to about 20 megawatts (MW) of electrical power, half of which is presently utilized by the Company. Business activities are comprised of self-mining operations and leasing space to third parties.
Executives
| Stephen Schaeffer |
officer: Chief Operating Officer |
512 S. MANGUM STREET, SUITE 408, DURHAM NC 27701 |
| Robert Ladd |
director, 10 percent owner |
C/O LADDCAP VALUE ADVISORS LLC, 650 FIFTH AVENUE, SUITE 600, NEW YORK NY 10019 |
| Robert S Lowrey |
officer: CFO, Treasurer, Secretary |
512 S MAGNUM STREET, STE 408, DURHAM NC 27701 |
| Nolan K Bushnell |
director |
5443 BEETHOVEN ST, LOS ANGELES CA 90066 |
| Hugh Robert Holmes |
director |
500 MAMARONECK AVENUE, SUITE 204, HARRISON NY 10528 |
| Iroquois Master Fund Ltd. |
10 percent owner |
641 LEXINGTON AVENUE, 26TH FLOOR, NEW YORK NY 10022 |
| Joshua Silverman |
10 percent owner |
IROQUOIS CAPITAL MANAGEMENT LLC, 205 EAST 42ND ST - 20TH FL., NEW YORK NY 10017 |
| Iroquois Capital Management, Llc |
10 percent owner |
641 LEXINGTON AVENUE, 26TH FLOOR, NEW YORK, NY 10022 |
| Michael Onghai |
director |
122 WEST 26TH ST. 5TH FLOOR, NEW YORK NY 10001 |
| J&s Gaming, Inc. |
10 percent owner |
12 MAY HILL LANE, DIX HILLS NY 11746 |
| Laddcap Value Partners Iii Llc |
other: Managing Member |
335 MADISON AVENUE, SUITE 1100, NEW YORK NY 10017 |
| Robert Paul Traversa |
officer: Chief Financial Officer |
C/O MGT CAPITAL INVESTMENTS, INC., 500 MAMARONECK AVENUE, SUITE 204, HARRISON NY 10528 |
| Neal Wyman |
director |
KENSINGTON CENTRE, 66 HAMMERSMITH ROAD, LONDON X0 W14 8UD |
| Peter Venton |
director |
KENSINGTON CENTRE, 66 HAMMERSMITH ROAD, LONDON X0 W14 8UD |
| Richard Wolfe Cohen |
director |
ONE NORTH BROADWAY, SUITE 509, WHITE PLAINS NY 10601 |
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