Performance Food Group Co (Performance Food Group Co) Probability of Financial Distress (%) : 0.04% (As of Apr. 29, 2024)

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What is Performance Food Group 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, Performance Food Group Co's Probability of Financial Distress (%) is 0.04%.

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 Performance Food Group Co's Probability of Financial Distress (%)

For the Food Distribution subindustry, Performance Food Group 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.

Performance Food Group Co's Probability of Financial Distress (%) Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Performance Food Group Co's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Performance Food Group Co's Probability of Financial Distress (%) falls into.

Performance Food Group 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

-7.84

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

PFD	=	1	/	(1 + e^(-LPFD))	*	100%
	=	0.04%

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).

Performance Food Group Co (NYSE:PFGC) 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.

Performance Food Group Co Probability of Financial Distress (%) Related Terms

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Performance Food Group Co (Performance Food Group Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Performance Food Group Co (NYSE:PFGC) » Definitions » Probability of Financial Distress (%)

Comparable Companies

Traded in Other Exchanges

P5F:Germany

Address

12500 West Creek Parkway, Richmond, VA, USA, 23238

Website

https://www.pfgc.com

Performance Food Group Co is the third-largest U.S. food-service distributor behind Sysco and us Foods, with 9% market share. PFG's food-service business (52% of 2022 sales) provides customized food products and services (such as product selection and procurement) to independent and chain restaurants, and institutional customers. Acquisitions of Eby-Brown (2019) and Core-Mark (2021) enabled PFG to tap into the convenience store segment (41% of sales), offering convenience products, marketing programs, and technology solutions to convenience stores, drug stores, and other such channels. The firm's Vistar business (7% of sales) is a national distributor of candy, snacks, and beverages to vending and office coffee service distributors, theaters, and hospitality providers.

Executives

David V Singer	director	13024 BALLANTYNE CORPORATE PL, SUITE 900, CHARLOTTE NC 28277
Patrick T. Hagerty	officer: See Remarks	C/O PERFORMANCE FOOD GROUP COMPANY, 12500 WEST CREEK PARKWAY, RICHMOND VA 23238
George L Holm	director, officer: See Remarks	3000 69TH STREET EAST, PALMETTO FL 34221
Donald S. Bulmer	officer: See Remarks	12500 WEST CREEK PARKWAY, RICHMOND VA 23238
Craig Howard Hoskins	officer: See Remarks	C/O PERFORMANCE FOOD GROUP COMPANY, 12500 WEST CREEK PARKWAY, RICHMOND VA 23238
Hugh Patrick Hatcher	officer: See Remarks	12500 WEST CREEK PARKWAY, RICHMOND VA 23238
Christine R Vlahcevic	officer: See Remarks	1021 EAST CARY STREET, PO BOX 2350, RICHMOND VA 23218-2350
Kimberly Grant	director	150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Scott E Mcpherson	officer: See Remarks	395 OYSTER POINT BLVD, SUITE 415, SAN FRANCISCO CA 94080
Matthew C Flanigan	director	LEGGETT & PLATT INC, NO 1 LEGGETT ROAD, CARTHAGE MO 64836
Laura Jean Flanagan	director	395 OYSTER POINT BLVD, SUITE 415, SOUTH SAN FRANCISCO CA 94080
James D Hope	officer: See Remarks	1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Warren M Thompson	director	4951 LAKE BROOK DRIVE, SUITE 500, GLEN ALLEN VA 23060
Barbara Beck	director	5301 N IRONWOOD RD, MILWAUKEE WI 53217
Erika T Davis	officer: See Remarks