What is Werner Enterprises 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, Werner Enterprises's Probability of Financial Distress (%) is 0.05%.
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 Werner Enterprises's Probability of Financial Distress (%)
For the Trucking subindustry, Werner Enterprises'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.
Werner Enterprises's Probability of Financial Distress (%) Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Werner Enterprises's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Werner Enterprises's Probability of Financial Distress (%) falls into.
Werner Enterprises 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 |
| = | -7.66 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.05% |
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).
Werner Enterprises (Werner Enterprises) Business Description
Traded in Other Exchanges
Address
14507 Frontier Road, Post Office Box 45308, Omaha, NE, USA, 68145-0308
Werner Enterprises Inc ranks among the top five full-truckload carriers by revenue, with a fleet of more than 7,800 tractors, including owner-operators. The company has two reportable segments - TTS and Werner Logistics. It derives about 80% of its top line from a wide array of full-truckload shipping services (including dedicated contract carriage; roughly 20% comes from non-asset based logistics operations, including truck brokerage.
Executives
| Michelle D. Greene |
director |
1141 N. OLD WORLD 3RD STREET, UNIT # 2414, MILWAUKEE WI 53203 |
| Christopher D Wikoff |
officer: Exec VP - Treasurer & CFO |
P.O. BOX 45308, OMAHA NE 68145 |
| Eric J Downing |
officer: Exec VP and COO |
P.O. BOX 45308, OMAHA NE 68145 |
| Carmen A Tapio |
director |
P.O. BOX 45308, OMAHA NE 68145 |
| Michelle Dye Livingstone |
director |
P.O. BOX 45308, OMAHA NE 68145 |
| Scott C Arves |
director |
SCHNEIDER NATIONAL, INC., P.O. BOX 2545, GREEN BAY WI 54306 |
| Alexi Wellman |
director |
ALTABA, 140 E 45TH STREET, 15TH FLOOR, SUITE 15A, NEW YORK NY 10017 |
| Vikram Mansharamani |
director |
P.O. BOX 45308, OMAHA NE 68145 |
| Jim S Schelbe |
officer: Vice President - Sales |
C/O WERNER ENTERPRISES INC, PO BO X45308, OMAHA NE 68415-0308 |
| H Marty Nordlund |
officer: Senior VP-Specialized Services |
PO BOX 45308, OMAHA NE 68145-0308 |
| Derek J Leathers |
officer: Senior VP - Van |
PO BOX 45308, OMAHA NE 68145-0308 |
| Craig T Callahan |
officer: VP Logistics & Corporate Sales |
P.O. BOX 45308, OMAHA NE 68145 |
| Clarence L Werner |
director, 10 percent owner, officer: Chief Executive Officer |
PO BOX 45308, OMAHA NE 68145 |
| Daragh P Mahon |
officer: Executive Vice President & CIO |
P.O. BOX 45308, OMAHA NE 68145 |
| James Lynn Johnson |
officer: Vice President - Controller |
PO BOX 45308, OMAHA NE 68145-0308 |
Werner Enterprises (Werner Enterprises) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
WERN has been successfully added to your