What is Ubiquiti 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, Ubiquiti's Probability of Financial Distress (%) is 0.04%.
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 Ubiquiti's Probability of Financial Distress (%)
For the Communication Equipment subindustry, Ubiquiti'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.
Ubiquiti's Probability of Financial Distress (%) Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Ubiquiti's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Ubiquiti's Probability of Financial Distress (%) falls into.
Ubiquiti 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 |
| = | -7.83 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.04% |
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).
Ubiquiti (Ubiquiti) Business Description
Traded in Other Exchanges
Address
685 Third Avenue, 27th Floor, New York, NY, USA, 10017
Ubiquiti Inc is a wireless and wireline network equipment provider for small Internet service providers and small- and midsize-business integrators. Its product is based on two primary categories namely Service Provider Technology and Enterprise Technology. The company generates maximum revenue from Enterprise Technology. Geographically, it derives a majority of revenue from North America and also has a presence in Europe, the Middle East and Africa; Asia Pacific and South America.
Executives
| Ronald Sege |
director |
350 CAMPUS DRIVE, MARLBOROUGH MA 01752 |
| Brandon Arrindell |
director |
UBIQUITI INC., 685 THIRD AVENUE, 27TH FLOOR, NEW YORK NY 10017 |
| Benjamin Moore |
officer: VP Business Development |
91 E. TASMAN DRIVE, SAN JOSE CA 95134 |
| Robert J Pera |
director, 10 percent owner, officer: Chief Executive Officer |
2580 ORCHARD PARKWAY, SAN JOSE CA 95131 |
| Rafael Torres |
director |
4359 RED MAPLE CT, SAN JOSE CA 95138 |
| Michael E. Hurlston |
director |
5300 CALIFORNIA AVENUE, IRVINE CA 92617 |
| Kevin Radigan |
officer: Chief Accounting Officer |
685 THIRD AVE, 27TH FLOOR, NEW YORK NY 10017 |
| Mark Spragg |
officer: Interim CAO |
2580 ORCHARD PARKWAY, SAN JOSE CA 95131 |
| John Sanford |
officer: Chief Technology Officer |
91 E. TASMAN DRIVE, SAN JOSE CA 95134 |
| Steven R Altman |
director |
|
| Peter Y Chung |
director |
C/O SUMMIT PARTNERS, 222 BERKELEY STREET, 18TH FLR, BOSTON MA 02116 |
| Summit Partners Private Equity Fund Vii-a, L.p. |
10 percent owner |
C/O SUMMIT PARTNERS, 222 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02110 |
| Fitzgerald Charles James Jr |
director |
SUMMIT PARTNERS, 222 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116 |
| Summit Partners L P |
other: Manager of GP of 10% owner. |
222 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116 |
| Jessica Zhou |
officer: General Counsel & VP |
UBIQUITI NETWORKS, INC., 91 E. TASMAN DRIVE, SAN JOSE CA 95134 |
Ubiquiti (Ubiquiti) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
UI has been successfully added to your