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, Welbilt'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 Specialty Industrial Machinery subindustry, Welbilt'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.
Welbilt Probability of Financial Distress (%) Distribution
For the Industrial Products industry and Industrials sector, Welbilt's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Welbilt's Probability of Financial Distress (%) falls into.
Welbilt 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 |
| = | -8.80 |
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
*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).
Welbilt Business Description
Traded in Other Exchanges
Address
2227 Welbilt Boulevard, New Port Richey, FL, USA, 34655
Welbilt Inc is engaged in the designing, manufacturing and supplying of equipment for the commercial foodservice market which is used by commercial and institutional foodservice operators including full-service restaurants, quick-service restaurant chains, hotels, resorts, cruise ships, caterers, supermarkets, convenience stores, hospitals, schools, and other institutions. The group offers various products such as grills, induction cookers braising pans, steamers, and others under the brand name such as Cleveland, Convotherm, Delfield, Frymaster, and others. The firm's geographical segments include Americas, EMEA, and APAC. It generates a majority of its revenue from the Americas.
Executives
| Agard Martin D. |
officer: EVP Chief Financial Officer |
3000 JOHN DEERE ROAD TOANO VA 23168 |
| Perez Kimberly Ann |
officer: VP, Chief Accounting Officer |
4211 W. BOY SCOUT BLVD. TAMPA FL 33607 |
| Fields Janice L |
director |
800 NORTH LINDBERGH BLVD. ST. LOUIS MO 63167 |
| Egnotovich Cynthia M |
director |
PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: EGNOTOVICH CYNTHIA M 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;} |
| Sheffer Richard James |
officer: VP, IR, Risk Mgmt, Treasurer |
MANITOWOC FOODSERVICE INC. 2227 WELBILT BLVD. NEW PORT RICHEY FL 34655 |
| Palm Jamie E |
officer: VP, Corp Controller, CAO |
2227 WELBILT BLVD NEW PORT RICHEY FL 34655 |
| Caron Richard N. |
officer: EVP Chief Innovation Officer |
MANITOWOC FOODSERVICE INC 2227 WELBILT BLVD NEW PORT RICHEY FL 34655 |
| Gudenkauf Jennifer |
officer: EVP & CHRO |
2227 WELBILT BLVD NEW PORT RICHEY FL 34655 |
| Johnson William |
director, officer: President and CEO |
3005 HIGHLAND PARKWAY SUITE 200 DOWNERS GROVE IL 60515 |
| Chow Joan Kai |
director |
215 W DIEHL ROAD NAPERVILLE IL 60563 |
| Horn Joel H. |
officer: EVP, Gen Counsel and Corp Secy |
2227 WELBILT BOULEVARD NEW PORT RICHEY FL 34655 |
| Davis Thomas Dale |
director |
MANITOWOC FOODSERVICE INC 2227 WELBILT BLVD NEW PORT RICHEY FL 34655 |
| Gamache Brian R |
director |
PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: GAMACHE BRIAN R 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;} |
| Matosevic Josef |
officer: EVP Chief Operating Officer |
1500 WEST UNIVERSITY PARKWAY SARASOTA FL 34243 |
| Langham Andrew |
director |
C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160 |
Welbilt Headlines
By tipranks.com 2022-03-03
By tipranks.com 2022-03-04
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