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Randolph Bancorp (Randolph Bancorp) Probability of Financial Distress (%) : 0.00% (As of Jun. 19, 2024)


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What is Randolph Bancorp 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, Randolph Bancorp'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 Randolph Bancorp's Probability of Financial Distress (%)

For the Banks - Regional subindustry, Randolph Bancorp'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.


Randolph Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Randolph Bancorp's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Randolph Bancorp's Probability of Financial Distress (%) falls into.



Randolph Bancorp 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

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 banks, 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).


Randolph Bancorp  (NAS:RNDB) 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.


Randolph Bancorp Probability of Financial Distress (%) Related Terms

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Randolph Bancorp (Randolph Bancorp) Business Description

Industry
Traded in Other Exchanges
N/A
Address
2 Batterymarch Park, Suite 301, Quincy, MA, USA, 02169
Randolph Bancorp Inc is a bank holding company of Envision Bank. The company is engaged in providing financial services to individuals, families, and small to mid-size businesses. The business of the company includes accepting deposits from the public and investing those deposits, commercial real estate loans, construction loans, investment securities, and consumer loans. The firm also offers deposit accounts, certificates of deposit, and money market accounts. The company has two reporting segments; Envision Bank, which is the key revenue generating segment; and Envision Mortgage. Envision Mortgage consists primarily of gains on loan origination and sales activities, loan servicing income and interest income on loans held for sale and residential construction loans.
Executives
Martin S. Friedman 10 percent owner 7901 JONES BRANCH DR. SUITE 210, MCLEAN VA 22102
Richard C. Pierce director C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
William M Parent director, officer: President & CEO C/O GRAIL INVESTMENT CORP., 767 THIRD AVENUE, 21ST FLOOR, NEW YORK NY 10017
Evelyn Kaupp director C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
Ronald K Perry director 320 NORWOOD PARK SOUTH, NORWOOD MA 02062
Pamela C Scott director 151 BRADLEE AVENUE, SWAMPSCOTT MA 01907
Ryan J. Kirwin officer: See Remarks C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
Louis J. Trubiano director C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
Thomas A. Foresta officer: See Remarks C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
Quigley Kenneth K Jr director
Olson Richard D. Jr. officer: See Remarks C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
Lauren Messmore officer: EVP & CFO 320 NORWOOD PARK SOUTH, NORWOOD MA 02062
Janis E. Wentzell director C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
James G. Welch director C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072
Nancy J. Curry officer: SVP/Commercial Lending C/O RANDOLPH BANCORP, INC., 10 CABOT PLACE, STOUGHTON MA 02072

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