What is Raytheon Co 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, Raytheon Co's Probability of Financial Distress (%) is 0.00%.
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 Raytheon Co's Probability of Financial Distress (%)
For the Aerospace & Defense subindustry, Raytheon Co'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.
Raytheon Co's Probability of Financial Distress (%) Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Raytheon Co's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Raytheon Co's Probability of Financial Distress (%) falls into.
Raytheon Co 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 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
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).
Raytheon Co (Raytheon Co) Business Description
Traded in Other Exchanges
N/A
Address
870 Winter Street, Waltham, MA, USA, 02451
Raytheon is a U.S. defense contractor that posted just over $27 billion in sales during 2018. It operates through five segments: integrated defense systems, intelligence and information, missile systems, space and airborne systems, and a cybersecurity business branded Forcepoint. Sales to the U.S. government account for about 70% of consolidated revenue. Based in Waltham, Massachusetts, Raytheon employs more than 60,000 people.
Executives
| William Spivey |
director |
|
| Letitia A Long |
director |
C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046 |
| David C Wajsgras |
officer: Vice President |
870 WINTER STREET, WALTHAM MA 02451 |
| Marta R Stewart |
director |
C/O NORFOLK SOUTHERN CORP, THREE COMMERCIAL PL, NORFOLK VA 23510-9219 |
| Frank R Jimenez |
officer: VP, General Counsel, Secretary |
GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 606061 |
| Michael J Wood |
officer: VP, Controller & CAO |
870 WINTER STREET, WALTHAM MA 02451 |
| Ellen M Pawlikowski |
director |
870 WINTER STREET, WALTHAM MA 02451 |
| Robert O Work |
director |
870 WINTER STREET, WALTHAM MA 02451 |
| Tracy A Atkinson |
director |
MFS INVESTMENT MANAGEMENT, 500 BOYLSTON ST., BOSTON MA 02116 |
| Roy Azevedo |
officer: Vice President |
870 WINTER STREET, WALTHAM MA 02451 |
| Wesley D Kremer |
officer: Vice President |
870 WINTER STREET, WALTHAM MA 02451 |
| Thomas A Kennedy |
director, officer: Chairman and CEO |
870 WINTER STREET, WALTHAM MA 02451 |
| George Oliver |
director |
5757 N. GREEN BAY AVENUE, MILWAUKEE WI 53209 |
| Winnefeld James A Jr |
director |
870 WINTER STREET, WALTHAM MA 02451 |
| Robert E Beauchamp |
director |
2101 CITYWEST BLVD, HOUSTON TX 77042-2827 |
Raytheon Co (Raytheon Co) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
RTN has been successfully added to your