What is Tandy Leather Factory 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, Tandy Leather Factory's Probability of Financial Distress (%) is 0.01%.
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 Tandy Leather Factory's Probability of Financial Distress (%)
For the Specialty Retail subindustry, Tandy Leather Factory'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.
Tandy Leather Factory's Probability of Financial Distress (%) Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Tandy Leather Factory's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Tandy Leather Factory's Probability of Financial Distress (%) falls into.
Tandy Leather Factory 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 |
| = | -9.16 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.01% |
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).
Tandy Leather Factory (Tandy Leather Factory) Business Description
Traded in Other Exchanges
N/A
Address
1900 Southeast Loop 820, Fort Worth, TX, USA, 76140
Tandy Leather Factory Inc is a specialty retailers of leather and leathercraft-related items. Its primary line of business is the sale of leather, leather crafts, and related supplies. Its broad line of leather and related products includes leather, leatherworking tools, leather dyes and finishes, and do-it-yourself kits. Its products include Leather, tools, Hardware, Supplies, Kits, Books and Patterns, and Gift cards. Geographically the company operates within United States, Canada and others and generates the highest revenue from the United States.
Executives
| Jcp Investment Management, Llc |
10 percent owner |
1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027 |
| Jcp Investment Partnership, Lp |
10 percent owner, other: See Footnote 1 |
1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027 |
| Jcp Investment Partners, Lp |
10 percent owner, other: See Footnote 1 |
1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027 |
| Jcp Investment Holdings, Llc |
10 percent owner, other: See Footnote 1 |
1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027 |
| Janet A Carr |
director, officer: CEO |
116 S PORTLAND AVENUE, BROOKLYN NY 11217 |
| Jefferson Gramm |
10 percent owner |
C/O BANDERA PARTNERS LLC, 50 BROAD STREET, SUITE 1820, NEW YORK NY 10004 |
| Shannon L Greene |
director, officer: CFO/TREASURER |
3800 FALCON LAKE DRIVE, ARLINGTON TX 76016 |
| Mark J Angus |
officer: SR VICE PRESIDENT |
1900 SE LOOP 820, FORTH WORTH TX 76140 |
| James C Pappas |
director |
1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027 |
| T Field Lange |
director |
6300 RIDGLEA PLACE, #500, FORT WORTH TX 76116 |
| Victoria Marie Cantrell |
director |
2 BERRY LANE, RANDOLPH NJ 07869 |
| Sejal Vinu Patel |
director |
400 PARK AVENUE, 21ST FL, NEW YORK NY 10022 |
| Beshore Brent Cornell |
director |
315 N TENTH ST, COLUMBIA MO 65201 |
| Sharon M Leite |
director |
100 PIER 1 PLACE, FT. WORTH TX 76102 |
| Joseph R Mannes |
director |
4016 MCFARLIN BLVD, DALLAS TX 75205 |
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