What is Servotronics 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, Servotronics's Probability of Financial Distress (%) is 0.09%.
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 Servotronics's Probability of Financial Distress (%)
For the Electrical Equipment & Parts subindustry, Servotronics'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.
Servotronics's Probability of Financial Distress (%) Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Servotronics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Servotronics's Probability of Financial Distress (%) falls into.
Servotronics 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 |
| = | -7.07 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.09% |
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).
Servotronics (Servotronics) Business Description
Traded in Other Exchanges
N/A
Address
1110 Maple Street, Post Office Box 300, Elma, NY, USA, 14059
Servotronics Inc is a U.S based company that designs, manufactures, and markets technology products consisting of control components and consumer products, consisting of knives and various types of cutlery and other edged products. The company operates in the segments of Technology Group, which is the key revenue-generating segment, and Consumer Products Group. Technology Group operations involve the design, manufacture, and marketing of servo-control components, which include torque motors, control valves, and actuators, among others for government, commercial and industrial applications. Consumer Products Group operations involve the designing, manufacturing, and marketing of a range of cutlery products for use by consumers and government agencies.
Executives
| Robert Fraass |
officer: Chief Financial Officer |
1110 MAPLE STREET, PO BOX 300, ELMA NY 14059 |
| Kenneth D Trbovich |
officer: President |
1110 MAPLE STREET, ELMA NY 14059 |
| Estate Of Nicholas D. Trbovich, Sr. |
10 percent owner |
960 PORTERVILLE ROAD, EAST AURORA NY 14052 |
| Brent D Baird |
10 percent owner |
1350 ONE M&T PLAZA, BUFFALO NY 14203-2396 |
| Evan H Wax |
director |
44 CHERRY LANE, MADISON CT 06443 |
| Founders Software, Inc. |
10 percent owner |
401 EAST AMHERST ST, BUFFALO NY 14215 |
| Snyder Paul L. Iii |
10 percent owner |
401 EAST AMHERST ST, BUFFALO NY 14215 |
| Beaver Hollow Wellness, Llc |
10 percent owner |
401 EAST AMHERST ST, BUFFALO NY 14215 |
| Edward C Cosgrove |
director |
525 DELAWARE AVENUE, BUFFALO NY 14202 |
| Lucion P Gygax |
director |
1110 MAPLE STREET, ELMA NY 14059 |
| Christopher M Marks |
director |
360 DELAWARE AVENUE, SUITE 230, BUFFALO NY 14202 |
| Karen L Howard |
director |
C/O SERVOTRONICS, INC., 1110 MAPLE STREET, ELMA NY 14059 |
| Farrell William F Jr. |
director, officer: Chief Executive Officer |
1110 MAPLE STREET, PO BOX 300, ELMA NY 14059 |
| Jason T Bear |
director |
5301 N. COMMERCE AVE., SUITE C, MOORPARK CA 93021 |
| Lisa F Bencel |
officer: Chief Financial Officer |
1110 MAPLE STREET, ELMA NY 14059 |
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