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Crown Equity Holdings Probability of Financial Distress (%)

: 0.17% (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, Crown Equity Holdings's Probability of Financial Distress (%) is 0.17%.

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 Consulting Services subindustry, Crown Equity Holdings'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.

   

Crown Equity Holdings Probability of Financial Distress (%) Distribution

For the Business Services industry and Industrials sector, Crown Equity Holdings's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Crown Equity Holdings's Probability of Financial Distress (%) falls into.



Crown Equity Holdings 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
=-6.38

The Probability of Financial Distress (%) (PFD) was then obtianed by:

PFD=1/(1 + e^(-LPFD))*100%
=0.17%

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).


Crown Equity Holdings  (OTCPK:CRWE) 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.


Crown Equity Holdings Probability of Financial Distress (%) Related Terms

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Crown Equity Holdings Business Description

Crown Equity Holdings logo
Industry
Industrials » Business Services NAICS : 519190 SIC : 7389
Traded in Other Exchanges
N/A
Address
11226 Pentland Downs Street, Las Vegas, NV, USA, 89141
Crown Equity Holdings Inc is engaged in offering services to domestic and global companies seeking to become public entities in the United States. It provides and offers advertising branding, marketing solutions and services to boost customer awareness, as well as merchant visibility. It primarily serves companies and individuals with corporate structure and operations globally. The company also provides public relations advertising and news dissemination for public and privately held companies. Geographically, activities function through the region of the United States.
Executives
Chacon Rudy director, officer: Chief Financial Officer PO BOX 2541 SAN DIEGO CA 90731
Zaman Mike director, officer: CEO/President 11226 PENTLAND DOWNS STREET LAS VEGAS NV 89141
Bosket Kenneth Cornell Sr director, officer: President/CEO 1453 FLINTROCK ROAD HENDERSON NV 89014
Saucedo-bardan Arnulfo director, officer: Chief Operating Officer 5440 SAHARA SUITE 205 LAS VEGAS NV 89146
Crown Marketing Corp. 10 percent owner 11226 PENTLAND DOWNS STREET LAS VEGAS NV 89141
Matus Brett director 4984 RIDING RIDGE SAN DIEGO CA 92130
Zaman Montse director, officer: Secretary 11226 PENTLAND DOWNS STREET LAS VEGAS NV 89141
Vega Mark Lawrence director, officer: Chief Technology Officer 4488 CASA BLANCA ST LAS VEGAS NV 89121
Holden Lowell Thomas director, officer: CFO 6330 NANCY RIDGE DR. SUITE 105 SAN DIEGO CA 92121
Onoue Steven director 5440 SAHARA SUITE 205 LAS VEGAS NV 89146
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