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, Live Nation Entertainment's Probability of Financial Distress (%) is 0.20%.
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 Entertainment subindustry, Live Nation Entertainment'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.
Live Nation Entertainment Probability of Financial Distress (%) Distribution
For the Media - Diversified industry and Communication Services sector, Live Nation Entertainment's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Live Nation Entertainment's Probability of Financial Distress (%) falls into.
Live Nation Entertainment 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 |
| = | -6.22 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.20% |
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).
Live Nation Entertainment Business Description
Traded in Other Exchanges
Address
9348 Civic Center Drive, Beverly Hills, CA, USA, 90210
Live Nation is the largest live entertainment firm in the world with over 570 million fans served in 44 countries in 2018 by the company's concert and ticketing platforms. Via either owning, operating, or holding exclusive booking rights, Live Nation controls over 235 venues including the House of Blues, the Hollywood Palladium, and Spark Arena in New Zealand. Live Nation also owns one of the largest ticketing services, Ticketmaster, which sold over 480 million tickets for over 12,000 clients in 2018. The firm's artist management agencies have over 400 clients. This large live entertainment footprint helped Live Nation become one of the largest advertising and sponsorship platforms aimed at music fans. Liberty Media owns 33% of Live Nation, held under its SiriusXM tracking stock.
Executives
| Hinson Jeffrey T. |
director |
3721 POTOMAC AVE. DALLAS TX 75205 |
| Rapino Michael |
director, officer: President & CEO |
9348 CIVIC CENTER DRIVE FOURTH FLOOR BEVERLY HILLS CA 90210 |
| Willard Elizabeth Kathleen |
officer: EVP & Chief Financial Officer |
2000 WEST LOOP SOUTH, SUITE 1300 HOUSTON TX 77027 |
| Maffei Gregory B |
director |
12300 LIBERTY BLVD ENGLEWOOD CO 80112 |
| Carter Maverick |
director |
C/O LIVE NATION ENTERTAINMENT, INC. 9348 CIVIC CENTER DRIVE BEVERLY HILLS CA 90210 |
| Walden Dana |
director |
C/O LIVE NATION ENTERTAINMENT, INC. 9348 CIVIC CENTER DRIVE BEVERLY HILLS CA 90210 |
| Fu Ping |
director |
C/O LIVE NATION ENTERTAINMENT, INC. 9348 CIVIC CENTER DRIVE BEVERLY HILLS CA 90210 |
| Hollingsworth Chad |
director |
6262 SUNSET DRIVE MIAMI FL 33143 |
| Iovine Jimmy |
director |
C/O LIVE NATION ENTERTAINMENT, INC. 9348 CIVIC CENTER DRIVE BEVERLY HILLS CA 90210 |
| Emanuel Ariel |
director |
C/O SOURCE INTERLINK COMPANIES, INC. 27500 RIVERVIEW CENTER BLVD, SUITE 400 BONITA SPRINGS FL 34134 |
| Kahan James S |
director |
175 E HOUSTON STREET -- SAN ANTONIO TX 78205-2233 |
| Mays Randall Thomas |
director |
CLEAR CHANNEL COMMUNICATIONS 200 EAST BASSE ROAD SAN ANTONIO TX 78209 |
| Shapiro Mark S |
director |
C/O RED ZONE LLC 21300 REDSKIN PARK DRIVE ASHBURN VA 20147 |
| Rowles Michael |
officer: EVP & General Counsel |
C/O LIVE NATION, INC. 9348 CIVIC CENTER DRIVE BEVERLY HILLS CA 90210 |
| Capo Brian |
officer: Chief Accounting Officer |
C/O LIVE NATION, INC. 9348 CIVIC CENTER DRIVE BEVERLY HILLS CA 90210 |
Live Nation Entertainment Headlines
By Seekingalpha 2021-11-18
By Seekingalpha 2022-02-23
By Seekingalpha 2021-11-04
By tipranks.com 2022-03-01
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