What is Vulcan Materials Co 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, Vulcan Materials Co's Probability of Financial Distress (%) is 0.02%.
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 Vulcan Materials Co's Probability of Financial Distress (%)
For the Building Materials subindustry, Vulcan Materials Co'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.
Vulcan Materials Co's Probability of Financial Distress (%) Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, Vulcan Materials Co's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Vulcan Materials Co's Probability of Financial Distress (%) falls into.
Vulcan Materials Co 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 |
| = | -8.51 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
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).
Vulcan Materials Co (Vulcan Materials Co) Business Description
Traded in Other Exchanges
Address
1200 Urban Center Drive, Birmingham, AL, USA, 35242
Vulcan Materials is the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). Its largest markets include Texas, California, Virginia, Tennessee, Georgia, Florida, North Carolina, and Alabama. In 2022, Vulcan sold 263.4 million tons of aggregates, 12.2 million tons of asphalt mix, and 10.5 million cubic yards of ready-mix. As of Dec. 31, 2022, the company had nearly 16 billion tons of aggregates reserves.
Executives
| Stanley G Bass |
officer: Chief Growth Officer |
1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242 |
| David P Clements |
officer: Senior Vice President, Central |
1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242 |
| Melissa H. Anderson |
director |
ALBEMARLE CORPORATION, 4250 CONGRESS ST. SUITE 900, CHARLOTTE NC 28209 |
| J Thomas Hill |
officer: Sr VP - South Region |
1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242 |
| Randy L. Pigg |
officer: Vice President and Controller |
1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242 |
| Mary Andrews Carlisle |
officer: SVP and CFO |
1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242 |
| Lydia H Kennard |
director |
155 N LAKE AVE, PASADENA CA 91101 |
| Darren L. Hicks |
officer: Chief Human Resources Officer |
1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242 |
| Perkins Jerry F Jr |
officer: General Counsel and Secetary |
1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242 |
| Jason P Teter |
officer: President, S&GC Division |
1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242 |
| Ronnie A Pruitt |
officer: Senior Vice President |
C/O U.S. CONCRETE, INC., 331 N. MAIN STREET, EULESS TX 76039 |
| David P Steiner |
director |
1001 FANNIN ST, STE 4000, HOUSTON TX 77002 |
| George Willis |
director |
55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328 |
| Franklin Denson N. Iii |
officer: SVP & General Counsel |
1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242 |
| Michael R Mills |
officer: Senior Vice President and Gene |
1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242 |
Vulcan Materials Co (Vulcan Materials Co) Headlines
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