Patriot Transportation Holding (Patriot Transportation Holding) Probability of Financial Distress (%) : 50.00% (As of May. 06, 2024)

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What is Patriot Transportation Holding 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, Patriot Transportation Holding's Probability of Financial Distress (%) is 50.00%.

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 Patriot Transportation Holding's Probability of Financial Distress (%)

For the Trucking subindustry, Patriot Transportation Holding'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.

Patriot Transportation Holding's Probability of Financial Distress (%) Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Patriot Transportation Holding's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Patriot Transportation Holding's Probability of Financial Distress (%) falls into.

Patriot Transportation Holding 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%
	=	50.00%

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

MB	=	Market Cap	/	Adjusted Book Equity
	=	Market Cap	/	(Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

Patriot Transportation Holding (NAS:PATI) 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.

Patriot Transportation Holding Probability of Financial Distress (%) Related Terms

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Patriot Transportation Holding (Patriot Transportation Holding) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Patriot Transportation Holding Inc (NAS:PATI) » Definitions » Probability of Financial Distress (%)

Comparable Companies

Traded in Other Exchanges

N/A

Address

200 West Forsyth Street, 7th Floor, Jacksonville, FL, USA, 32202

Website

https://www.patriottrans.com

Patriot Transportation Holding Inc is a regional tank truck carrier in North America. Its business consists of hauling petroleum-related products and dry bulk commodities and liquid chemicals. The company currently has approximately eighteen terminal and satellite locations spread across the states of Florida, Georgia, Alabama, and Tennessee. The company also provides the delivery service in the liquid chemical and dry bulk business primarily from distribution facilities or manufacturing facilities to the end-user.

Executives

Baker Thompson S Ii	director	200 W. FORSYTH STREET, 7TH FLOOR, JACKSONVILLE FL 32202
John D Klopfenstein	officer: Controller and CAO	200 W. FORSYTH STREET, 7TH FLOOR, JACKSONVILLE FL 32202
Robert E Sandlin	officer: President and CEO	200 W. FORSYTH STREET, 7TH FLOOR, JACKSONVILLE FL 32202
Baker John D Ii	10 percent owner	200 W. FORSYTH STREET, 7TH FLOOR, JACKSONVILLE FL 32202
Eric K. Mann	director	200 W FORSYTH STREET, 7TH FLOOR, JACKSONVILLE FL 32202
Milton John D Jr	officer: Executive Vice President & CFO	200 W. FORSYTH STREET, 7TH FLOOR, JACKSONVILLE FL 32202
Matthew C. Mcnulty	officer: Vice President and CFO	200 WEST FORSYTH STREET, 7TH FLOOR, JACKSONVILLE FL 32202
Charles D Hyman	director	224 PONTE VEDRA PARK DRIVE, SUITE 200, PONTE VEDRA BEACH FL 32082
Stein Martin E Jr	director	ONE INDEPENDENT DRIVE, SUITE 114, JACKSONVILLE FL 32202
Baker Edward L Ii	10 percent owner	200 W FORSYTH ST, 12TH FLOOR, JACKSONVILLE FL 32202
Paul Robert H Iii	director	200 W. FORSYTH STREET, 7TH FLOOR, JACKSONVILLE FL 32202
Fichthorn Luke E Iii	director	200 W. FORSYTH STREET, 7TH FLOOR, JACKSONVILLE FL 32202
John E Anderson	director	200 W. FORSYTH STREET, 7TH FLOOR, JACKSONVILLE FL 32202
Anderson James N Iv	officer: VP Safety & Risk Management	200 W FORSYTH ST, 7TH FLOOR, JACKSONVILLE FL 32202
Frp Holdings, Inc.	10 percent owner	200 W. FORSYTH ST., 7TH FLOOR, JACKSONVILLE FL 32202