What is Markforged Holding 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, Markforged Holding's Probability of Financial Distress (%) is 1.17%.
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 Markforged Holding's Probability of Financial Distress (%)
For the Computer Hardware subindustry, Markforged Holding'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.
Markforged Holding's Probability of Financial Distress (%) Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Markforged Holding's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Markforged Holding's Probability of Financial Distress (%) falls into.
Markforged Holding 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 |
| = | -4.43 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 1.17% |
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).
Markforged Holding (Markforged Holding) Business Description
Traded in Other Exchanges
N/A
Address
480 Pleasant Street, Watertown, MA, USA, 02472
Markforged Holding Corp transforms manufacturing with 3D metal and continuous carbon fiber printers capable of producing parts tough enough for the factory floor. The Markforged Digital Forge brings the power and speed of agile software development to industrial manufacturing, combining hardware, software, and materials to eliminate the barriers between design and functional parts. The company's geographical segments include the Americas; Europe, the Middle East, Africa; and Asia-Pacific.
Executives
| Aaron Vandevender |
director |
1 TOWER PLACE, SUITE 850, SOUTH SAN FRANCISCO CA 94080 |
| Assaf Zipori |
officer: Acting Chief Financial Officer |
MARKFORGED HOLDING CORP, 60 TOWER ROAD, WALTHAM MA 02451 |
| Shai Terem |
director, officer: President and CEO |
C/O MARKFORGED, INC., 480 PLEASANT STREET, WATERTOWN MA 02472 |
| Mark Joseph Schwartz |
officer: Chief Financial Officer |
4104 24TH STREET #345, SAN FRANCISCO CA 94114 |
| Gregory Mark |
10 percent owner |
C/O MARKFORGED, INC., 480 PLEASANT STREET, WATERTOWN MA 02472 |
| David Benhaim |
officer: Chief Technology Officer |
C/O MARKFORGED, 480 PLEASANT STREET, WATERTWON MA 02472 |
| Stephen Karp |
officer: General Counsel |
C/O MARKFORGED, INC., 480 PLEASANT STREET, WATERTOWN MA 02472 |
| Carol Meyers |
director |
3 BATTERY WHARF, UNIT 3408, BOSTON MA 02109 |
| Alan Masarek |
director |
C/O VONAGE HOLDINGS CORP., 23 MAIN STREET, HOLMDEL NJ 07733 |
| Richard A Damore |
10 percent owner |
C/O NORTHBRIDGE VENTURE PARTNERS, 950 WINTER ST STE 4600, WALTHAM MA 02451 |
| North Bridge Venture Partners 7, L.p. |
10 percent owner |
60 WILLIAM STREET, SUITE 350, WELLESLEY MA 02481 |
| North Bridge Venture Management 7, L.p. |
10 percent owner |
60 WILLIAM STREET, SUITE 350, WELLESLEY MA 02481 |
| Michael Medici |
director |
C/O MARKFORGED, INC., 480 PLEASANT STREET, WATERTOWN MA 02472 |
| Matrix Ix Management Co. Llc |
10 percent owner |
101 MAIN STREET, 17TH FLOOR, CAMBRIDGE MA 02142 |
| Antonio L. Rodriguez |
director |
MATRIX PARTNERS, 101 MAIN STREET, 17TH FLOOR, CAMBRIDGE MA 02142 |
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