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MPLX LP Probability of Financial Distress (%)

: 0.02% (As of Today)
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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, MPLX LP'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

For the Oil & Gas Midstream subindustry, MPLX LP'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.

   

MPLX LP Probability of Financial Distress (%) Distribution

For the Oil & Gas industry and Energy sector, MPLX LP's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where MPLX LP's Probability of Financial Distress (%) falls into.



MPLX LP 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
=-8.75

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

NIMTAAVG=Net Income / Market Total Assets
=Net Income / (Market Cap + Total Liabilities)

*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

TLMTA=Total Liabilities / Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For non-financial companies, CASHMTA is measured as:

CASHMTA=Cash, Cash Equivalents, Marketable Securities / Market Total Assets

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).


MPLX LP  (NYSE:MPLX) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.


MPLX LP Probability of Financial Distress (%) Related Terms

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MPLX LP Business Description

MPLX LP logo
Industry
Energy » Oil & Gas NAICS : 213112 SIC : 4612
Traded in Other Exchanges
Address
200 East Hardin Street, Findlay, OH, USA, 45840-3229
MPLX is a partnership that owns both pipelines and gathering and processing assets with extensive holdings in the Appalachian region. The asset base is made up of pipeline assets dropped down from Marathon Petroleum, its sponsor, and gathering and processing assets from MarkWest, which it acquired in 2015. MPLX also acquired Andeavor Logistics in July 2019.
Executives
Surma John P director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SURMA JOHN P a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Beatty Michael L director 5735 PINELAND DR SUITE 300 DALLAS TX 75231
Sandman Dan D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SANDMAN DAN D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Peiffer Garry L. director C/O MARATHON PETROLEUM CORPORATION 539 S. MAIN STREET FINDLAY OH 45840
Semple Frank M director 1515 ARAPAHOE ST. TOWER 2, SUITE 700 DENVER CO 80202
Stice J Michael director 525 CENTRAL PARK DRIVE OKLAHOMA CITY OK 73105
Helms Christopher A director MPLX LP 200 E. HARDIN STREET FINDLAY OH 45840
Aydt Timothy J officer: Chief Comm. Ofc.,Exec. VP C/O MPLX LP 200 E. HARDIN STREET FINDLAY OH 45840
Mpc Investment Llc director, 10 percent owner 539 S. MAIN STREET FINDLAY OH 45840
Mplx Gp Llc director, 10 percent owner 200 E. HARDIN STREET FINDLAY OH 45840
Mplx Logistics Holdings Llc other: Less than 10% owner 200 E. HARDIN STREET FINDLAY OH 45840
Tesoro Logistics Gp, Llc other: Less than 10% owner 200 E. HARDIN STREET FINDLAY OH 45840
Marathon Petroleum Corp director, 10 percent owner 539 SOUTH MAIN STREET FINDLAY OH 45840-3229
Western Refining, Inc. 10 percent owner 539 SOUTH MAIN STREET FINDLAY OH 45840-3229
Tesoro Refining & Marketing Co Llc other: Less than 10% owner 539 SOUTH MAIN STREET FINDLAY OH 45840-3229

MPLX LP Headlines

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