What is Rise Gold 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, Rise Gold's Probability of Financial Distress (%) is 3.46%.
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 Rise Gold's Probability of Financial Distress (%)
For the Gold subindustry, Rise Gold'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.
Rise Gold's Probability of Financial Distress (%) Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Rise Gold's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Rise Gold's Probability of Financial Distress (%) falls into.
Rise Gold 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 |
| = | -3.33 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 3.46% |
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).
Rise Gold (Rise Gold) Business Description
Traded in Other Exchanges
Address
669 Howe Street, Suite 650, Vancouver, BC, CAN, V6C 0B4
Rise Gold Corp is a mineral exploration stage mining company and its primary asset is a major past producing Idaho-Maryland Gold Mine property near Grass Valley, California, United States. The Company conducts its business in one geographical segment located in California, United States, where all of its equipment and mineral property interests are located.
Executives
| Clynton R. Nauman |
director |
C/O NOVAGOLD RESOURCES INC., 201 SOUTH MAIN STREET, SUITE 400, SALT LAKE CITY UT 84111 |
| Mullin Joseph E Iii |
officer: President and CEO |
C/O RISE GOLD CORP., SUITE 215, 333 CROWN POINT CIRCLE, GRASS VALLEY CA 95945 |
| Lawrence Ward Lepard |
director, 10 percent owner |
211 GROVE STREET, WELLESLEY MA 02482 |
| Daniel Jr Oliver |
10 percent owner |
713 SILVERMINE ROAD, NEW CANAAN CT 06840 |
| Vince Boon |
officer: Chief Financial Officer |
C/O SOUTHERN ARC MINERALS INC., SUITE 650, 669 HOWE STREET, VANCOUVER A1 V6C 0B4 |
| John Proust |
director |
C/O SOUTHERN ARC MINERALS INC., SUITE 650, 669 HOWE STREET, VANCOUVER A1 V6C 0B4 |
| V B S Exchange Pty Ltd |
10 percent owner |
LEVEL 12, 644 CHAPEL ST, SOUTH YARRA C3 3141 |
| Murray Guinn Flanigan |
director |
SUITE 602 - 1088 WEST 14TH AVENUE, VANCOUVER A1 V6H 0A6 |
| Thomas I. Vehrs |
director |
6833 YAMPA DRIVE, LARKSPUR CO 80118 |
| Benjamin Mossman |
director, officer: CEO |
488 - 1090 WEST GEORGIA STREET, VANCOUVER A1 V6E 3V7 |
| V B S Investments Pty Ltd |
10 percent owner |
LEVEL 12, 644 CHAPEL ST, SOUTH YARRA C3 3141 |
| Southern Arc Minerals Inc |
10 percent owner |
650-669 HOWE STREET, VANCOUVER A1 V6C 0B4 |
| Brian Cale Thomas |
director, officer: CFO |
488 - 1090 WEST GEORGIA STREET, VANCOUVER A1 V6E 3V7 |
| Bradley Scharfe |
director, 10 percent owner |
488 - 1090 WEST GEORGIA STREET, VANCOUVER A1 V6E 3V7 |
| Alan R Edwards |
director, officer: Chairman of the Board |
8121 N. FAIRWAY VIEW DR., TUCSON AZ 85742 |
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