What is Monolithic Power Systems 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, Monolithic Power Systems's Probability of Financial Distress (%) is 0.03%.
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 Monolithic Power Systems's Probability of Financial Distress (%)
For the Semiconductors subindustry, Monolithic Power Systems'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.
Monolithic Power Systems's Probability of Financial Distress (%) Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Monolithic Power Systems's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Monolithic Power Systems's Probability of Financial Distress (%) falls into.
Monolithic Power Systems 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 |
| = | -8.26 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
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).
Monolithic Power Systems (Monolithic Power Systems) Business Description
Traded in Other Exchanges
Address
5808 Lake Washington Boulevard NE, Kirkland, WA, USA, 98033
Monolithic Power Systems is an analog and mixed-signal chipmaker, specializing in power management solutions. The firm's mission is to reduce total energy consumption in end systems, and it serves the computing, automotive, industrial, communications, and consumer end markets. MPS uses a fabless manufacturing model, partnering with third-party chip foundries to host its proprietary BCD process technology.
Executives
| Maurice Sciammas |
officer: Sr. V.P.of Sales and Marketing |
79 GREAT OAKS BLVD, SAN JOSE CA 95119 |
| Deming Xiao |
officer: Vice President of Operations |
79 GREAT OAKS BLVD, SAN JOSE CA 95119 |
| Saria Tseng |
officer: VP and General Counsel |
79 GREAT OAKS BLVD, SAN JOSE CA 95119 |
| Michael Hsing |
director, 10 percent owner, officer: President and CEO |
79 GREAT OAKS BLVD, SAN JOSE CA 95119 |
| Theodore Blegen |
officer: CFO |
5808 LAKE WASHINGTON BLVD NE, KIRKLAND WA 98033 |
| James C Moyer |
director, 10 percent owner, officer: Chief Design Engineer |
79 GREAT OAKS BLVD, SAN JOSE CA 95119 |
| Chang Kuo Wei Herbert |
director, 10 percent owner |
C/O MARVELL SEMICONDUCTOR, INC., 5488 MARVELL LANE, SANTA CLARA CA 95054 |
| Eileen Wynne |
director |
MONOLITHIC POWER SYSTEMS, 79 GREAT OAKS BLVD, SAN JOSE CA 95117 |
| Jeff Zhou |
director |
6409 GUADALUPE MINES ROAD, SAN JOSE CA 95120 |
| Eugen J Elmiger |
director |
BUEELHADE 3A, SEMPACH STADT V8 6204 |
| Victor K Lee |
director |
C/O LEADIS TECHNOLOGY, 800 W. CALIFORNIA AVENUE, SUITE 200, SUNNYVALE CA 94086 |
| Carintia Martinez |
director |
5808 LAKE WASHINGTON BLVD NE, KIRKLAND WA 98033 |
| Meera Rao |
officer: VP of Finance, Corp Controller |
1050 ENTERPRISE WAY, SUITE 700, SUNNYVALE CA 94089 |
| Douglas M Mcburnie |
director |
233 S. HILLVIEW DRIVE, MILPITAS CA 95035 |
| Smith- Pilkington Karen A |
director |
343 STATE STREET, ROCHESTER NY 146500211 |
Monolithic Power Systems (Monolithic Power Systems) Headlines
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