What is United States Cellular 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, United States Cellular's Probability of Financial Distress (%) is 0.07%.
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 United States Cellular's Probability of Financial Distress (%)
For the Telecom Services subindustry, United States Cellular'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.
United States Cellular's Probability of Financial Distress (%) Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, United States Cellular's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where United States Cellular's Probability of Financial Distress (%) falls into.
United States Cellular 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 |
| = | -7.23 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.07% |
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).
United States Cellular (United States Cellular) Business Description
Traded in Other Exchanges
Address
8410 West Bryn Mawr, Chicago, IL, USA, 60631
U.S. Cellular is a regional wireless carrier that serves about 5 million customers spread across four major geographic clusters: the Midwest, mid-Atlantic, New England, and the Pacific Northwest. These service territories encompass a total population of about 32 million people. The vast majority of the markets the firm serves are rural or second/third-tier cities, with only the greater Milwaukee and Oklahoma City regions boasting populations greater than 1 million. U.S. Cellular also owns a 5.5% stake in Verizon Wireless' Los Angeles operations and, unlike its wireless carrier peers, owns most of its own towers.
Executives
| Michael Irizarry |
officer: EVP & CTO-Engineering and IS |
8410 W BRYN MAWR, CHICAGO IL 60631 |
| Kevin R Lowell |
officer: EVP, Chief People Officer |
8410 W. BRYN MAWR AVE, CHICAGO IL 60631 |
| Xavier Williams |
director |
C/O AMERICAN VIRTUAL CLOUD TECHNOLOGIES, 1720 PEACHTREE ST., SUITE 629, ATLANTA GA 30309 |
| James W Butman |
director |
30 N. LASALLE STREET, STE. 4000, CHICAGO IL 60602 |
| Gregory P Josefowicz |
director |
850 76TH STREET SW, GRAND RAPIDS MI 49518 |
| Deirdre Drake |
officer: SVP-Chief HR Officer |
8410 W. BRYN MAWR AVE, CHICAGO IL 60631 |
| Esteban C Iriarte |
director |
8410 W. BRYN MAWR, CHICAGO IL 60631 |
| Vicki L Villacrez |
director |
30 N. LASALLE STREET, SUITE 4000, CHICAGO IL 60602 |
| Ronald E Daly |
director |
|
| J Samuel Crowley |
director |
8410 WEST BRYN MAWR ST STE 700, CHICAGO IL 60631 |
| Jay Ellison |
officer: EVP-Operations |
|
| Laurent C Therivel |
director, officer: President and CEO |
8410 W. BRYN MAWR STREET, CHICAGO IL 60631 |
| Kenneth R Meyers |
director, officer: President and CEO |
|
| Anita J Kroll |
officer: Chief Accounting Officer |
30 N. LASALLE STREET, SUITE 4000, CHICAGO IL 60602 |
| Steven T Campbell |
director, officer: EVP-Finance, CFO and Treasurer |
8410 W. BRYN MAWR, CHICAGO IL 60631 |
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