What is Taubman Centers 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, Taubman Centers's Probability of Financial Distress (%) is 50.00%.
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 Taubman Centers's Probability of Financial Distress (%)
For the REIT - Retail subindustry, Taubman Centers'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.
Taubman Centers's Probability of Financial Distress (%) Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Taubman Centers's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Taubman Centers's Probability of Financial Distress (%) falls into.
Taubman Centers 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% |
| = | 50.00% |
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).
Taubman Centers (Taubman Centers) Business Description
Traded in Other Exchanges
N/A
Address
200 East Long Lake Road, Suite 300, Bloomfield Hills, MI, USA, 48304-2324
Taubman Centers Inc is engaged in the ownership, leasing, acquisition, disposition, development, expansion, and management of shopping centers. The company owns or operates a collection of over 20 urban and suburban shopping centers in U.S. states, Puerto Rico, South Korea, and China. Some of the operating malls of the group are Cherry Creek Shopping center, City Creek Center, Dolphin Mall, Fair Oaks Mall, and Stamford Town Center. Taubman derives its revenue by offering its properties on lease.
Executives
| Marakovits Cornelia Connelly |
director |
C/O TAUBMAN CENTERS, INC., 200 E. LONG LAKE RD., STE 300, BLOOMFIELD HILLS MI 48304 |
| Ullman Myron E Iii |
director |
100 SPEAR ST. SUITE 935, SAN FRANCISCO CA 94105 |
| Michelle J Goldberg |
director |
601 UNION STREET, SUITE 3100, SEATTLE WA 98101 |
| Janice L Fields |
director |
800 NORTH LINDBERGH BLVD., ST. LOUIS MO 63167 |
| Nancy Killefer |
director |
3170 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042 |
| Mayree C Clark |
director |
C/O ALLY FINANCIAL INC., 200 RENAISSANCE CENTER, DETROIT MI 48265 |
| Michael J Embler |
director |
C/O NMI HOLDINGS, INC., 2100 POWELL STREET, EMERYVILLE CA 94608 |
| Simon Leopold |
officer: EVP, CFO and Treasurer |
70 E. LONG LAKE ROAD, BLOOMFIELD HILLS MI 48304 |
| Paul Aubrey Wright |
officer: President, Taubman Asia Mngmt |
C/O TAUBMAN CENTERS, INC., 200 E. LONG LAKE ROAD, STE 300, BLOOMFIELD HILLS MI 48304 |
| Jonathan Litt |
director |
LAND AND BUILDINGS, 1 LANDMARK SQUARE, 7TH FLOOR, STAMFORD CT 06901 |
| Robert S Taubman |
director, officer: President, CEO, AND Chair BOD |
200 EAST LONG LAKE RD, SUITE 300 P O BOX 200, BLOOMFIELD HILLS MI 48303-0200 |
| William S Taubman |
officer: Chief Operating Officer |
200 E LONG LAKE RD, TAUBMAN ASSET GROUP, BLOOMFIELD HILLS MI 48303 |
| Peter John Sharp |
officer: President, Taubman Asia Mngmt |
C/O TAUBMAN CENTERS, INC., 200 E. LONG LAKE ROAD, STE 300, BLOOMFIELD HILLS MI 48304 |
| Craig M Hatkoff |
director |
ONE WEST 72ND STREET, NEWYORK NY 10023 |
| Jerome A Chazen |
director |
C/O CHAZEN CAPITAL PARTNERS LLC, 150 EAST 58TH STREET, 27TH FLOOR, NEW YORK NY 10155 |
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