What is SDCL EDGE Acquisition 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, SDCL EDGE Acquisition's Probability of Financial Distress (%) is 0.02%.
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 SDCL EDGE Acquisition's Probability of Financial Distress (%)
For the Shell Companies subindustry, SDCL EDGE Acquisition'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.
SDCL EDGE Acquisition's Probability of Financial Distress (%) Distribution in the Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, SDCL EDGE Acquisition's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where SDCL EDGE Acquisition's Probability of Financial Distress (%) falls into.
SDCL EDGE Acquisition 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 |
| = | -8.41 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
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).
SDCL EDGE Acquisition (SDCL EDGE Acquisition) Business Description
Traded in Other Exchanges
N/A
Address
60 East 42nd Street, Suite 1100, New York, NY, USA, 10165
SDCL EDGE Acquisition Corp is a blank check company.
Executives
| Karl E. Olsoni |
director |
C/O SDCL EDGE ACQUISITION CORP, PO BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104 |
| Guy Hands |
10 percent owner |
OLD BANK CHAMBERS, LA GRANDE RUE, ST MARTIN'S Y7 GY4 6RT |
| Seaside Holdings (nominee) Ltd |
10 percent owner |
PO BOX 286, 2ND FLOOR, TRAFALGAR COURT, LES BANQUES, ST PETER PORT Y7 GY1 4LY |
| Sustainable Investors Fund, Lp |
10 percent owner |
250 UNIVERSITY AVENUE, SUITE 300, PALO ALTO CA 94301 |
| Sif Partners, Llc |
10 percent owner |
250 UNIVERSITY AVE, SUITE 300, PALO ALTO CA 94301 |
| Steven J Gilbert |
director |
540 MADISON AVE, 40TH FL, NEW YORK NY 10022 |
| William V. Kriegel |
director |
330 MADISON AVENUE, 25TH FLOOR, NEW YORK NY 10017 |
| Sdcl Edge Sponsor Llc |
10 percent owner |
PO BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104 |
| Sdcl Edge Acquisition Corp |
10 percent owner |
PO BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104 |
| Machado Fernandes Ana Maria |
director |
PO BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104 |
| Michael Naylor |
director |
PO BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104 |
| Lolita Jackson |
director |
PO BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104 |
| Edward Wilson Davis |
officer: CFO |
PO BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104 |
| Jonathan Maxwell |
director, 10 percent owner, officer: Co-Chief Executive Officer |
PO BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104 |
| Michael Trattner Feldman |
officer: Co-CEO |
PO BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104 |
SDCL EDGE Acquisition (SDCL EDGE Acquisition) Headlines
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