GURUFOCUS.COM » STOCK LIST » USA » NAS » Viasat Inc (NAS:VSAT) » Definitions » Probability of Financial Distress (%)
Switch to:

Viasat (NAS:VSAT) Probability of Financial Distress (%)

: 0.31% (As of Today)
View and export this data going back to 1996. Start your Free Trial

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, Viasat's Probability of Financial Distress (%) is 0.31%.

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.


Viasat (NAS:VSAT) Probability of Financial Distress (%) Competitive Comparison

For the Communication Equipment subindustry, Viasat'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.

   

Viasat (NAS:VSAT) Probability of Financial Distress (%) Distribution

For the Hardware industry and Technology sector, Viasat's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Viasat's Probability of Financial Distress (%) falls into.



Viasat 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
=-5.77

The Probability of Financial Distress (%) (PFD) was then obtianed by:

PFD=1/(1 + e^(-LPFD))*100%
=0.31%

The eight explanatory variables are:

1. NIMTAAVG = Net Income to Market Total Assets

NIMTAAVG=Net Income / Market Total Assets
=Net Income / (Market Cap + Total Liabilities)

*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

TLMTA=Total Liabilities / Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For non-financial companies, CASHMTA is measured as:

CASHMTA=Cash, Cash Equivalents, Marketable Securities / Market Total Assets

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).


Viasat  (NAS:VSAT) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.


Viasat Probability of Financial Distress (%) Related Terms

Thank you for viewing the detailed overview of Viasat's Probability of Financial Distress (%) provided by GuruFocus.com. Please click on the following links to see related term pages.


Viasat (NAS:VSAT) Business Description

Viasat logo
Industry
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Viasat Inc (NAS:VSAT) » Definitions » Probability of Financial Distress (%)
Traded in Other Exchanges
Address
6155 El Camino Real, Carlsbad, CA, USA, 92009
Viasat Inc provides bandwidth technologies and services in three segments: satellite services, which provides satellite-based high-speed broadband services to consumers, enterprises, and commercial airlines; commercial networks, which develops end-to-end communication and connectivity systems; and government systems, which produces network-centric Internet Protocol-based secure government communication systems. A large majority of the firm's revenue is generated in the United States, with the rest coming from the Americas, Europe, Middle East, Africa, and Asia-Pacific.
Executives
Miller Craig Andrew officer: Pres. Government Systems C/O VIASAT, INC. 6155 EL CAMINO REAL CARLSBAD CA 92009
Nathan Krishna officer: Chief Information Officer 55 WATER STREET NEW YORK NY 10020
Dixon Evan Christopher officer: Pres. Global Fixed Broadband C/O VIASAT, INC. 6155 EL CAMINO REAL CARLSBAD CA 92009
Bridenstine James Frederick director C/O VIASAT, INC. 6155 EL CAMINO REAL CARLSBAD CA 92009
Dodd James Michael officer: President, Global Mobile 6155 EL CAMINO REAL CARLSBAD CA 92009
Wise Theresa director 400 FAIRVIEW AVENUE NORTH SUITE 1200 SEATTLE WA 98109
Klarman Seth A 10 percent owner 10 ST JAMES AVENUE STE 1700 BOSTON MA 02116
Baupost Group Gp, L.l.c. 10 percent owner 10 ST. JAMES AVENUE SUITE 1700 BOSTON MA 02116
Baupost Group Llc/ma 10 percent owner 10 ST JAMES AVE SUITE 1700 BOSTON MA 02116
Ryan David Louis officer: President Space Systems 6155 EL CAMINO REAL CARLSBAD CA 92009
Agnew Marc Henry officer: VP Commercial Networks 6155 EL CAMINO REAL CARLSBAD CA 92009
Pak Sean director 6155 EL CAMINO REAL CARLSBAD CA 92009
Rao Varsha Rajendra director 6155 EL CAMINO REAL CARLSBAD CA 92009
Chandran Girish officer: VP and CTO 6155 EL CAMINO REAL CARLSBAD CA 92009
Blair Robert James Blair officer: Vice President 6155 EL CAMINO REAL CARLSBAD CA 92009

Viasat (NAS:VSAT) Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
premium membership