What is Smart & Final Stores 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, Smart & Final Stores'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 Smart & Final Stores's Probability of Financial Distress (%)
For the Grocery Stores subindustry, Smart & Final Stores'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.
Smart & Final Stores's Probability of Financial Distress (%) Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Smart & Final Stores's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Smart & Final Stores's Probability of Financial Distress (%) falls into.
Smart & Final Stores 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
*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).
Smart & Final Stores (Smart & Final Stores) Business Description
Traded in Other Exchanges
N/A
Address
600 Citadel Drive, Commerce, CA, USA, 90040
Smart & Final Stores Inc is a U.S.-based company that is principally engaged in food retail. The company operates through stores under the Smart & Final and Cash & Carry banners. The Smart & Final stores target both household and business customers. The Cash & Carry stores mainly provides goods to business customers, including restaurants, caterers, and other foodservice providers, along with community organizations. The company's goods consist of fresh fruits and vegetables, meat, dairy, cheese, grocery, beverage, paper and packaging, restaurant equipment, and janitorial supplies. The majority of the company's stores are located in the west of the United States, with a few in northwestern Mexico in a joint-venture format.
Executives
| Derek R Jones |
officer: President, Smart Foodservice |
C/O 850 - 76TH STREET, S.W., P.O. BOX 8700, GRAND RAPIDS MI 49518 |
| Ares Management Llc |
10 percent owner |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Ares Corporate Opportunities Fund Iii Lp |
10 percent owner |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Acof Operating Manager Iii Llc |
10 percent owner |
C/O ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Ares Management Corp |
10 percent owner |
2000 AVE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Ares Management Holdings L.p. |
10 percent owner |
2000 AVENUE OF THE STARS, 12TH FL, LOS ANGELES CA 90067 |
| Ares Partners Holdco Llc |
10 percent owner |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Ares Management Gp Llc |
10 percent owner |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Ares Holdings Inc. |
10 percent owner |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Ares Holdco Llc |
10 percent owner |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Ares Voting Llc |
10 percent owner |
C/O ARES MGMT, 2000 AVE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Norman Axelrod |
director |
|
| Joseph S. Tesoriero |
director |
C/O BARFRESH FOOD GROUP, INC., 8530 WILSHIRE BOULEVARD, SUITE 450, BEVERLY HILLS CA 90211 |
| Ares Corporate Opportunities Fund Iv, L.p. |
10 percent owner |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
| Acof Operating Manager Iv, Llc |
10 percent owner |
2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067 |
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