What is American Resources 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, American Resources's Probability of Financial Distress (%) is 0.13%.
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 American Resources's Probability of Financial Distress (%)
For the Coking Coal subindustry, American Resources'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.
American Resources's Probability of Financial Distress (%) Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, American Resources's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where American Resources's Probability of Financial Distress (%) falls into.
American Resources 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 |
| = | -6.67 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.13% |
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).
American Resources (American Resources) Business Description
Traded in Other Exchanges
N/A
Address
12115 Visionary Way, Fishers, IN, USA, 46038
American Resources Corp is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The firm is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. The firm has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated. Its business model provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets.
Executives
| Kirk Patrick Taylor |
10 percent owner, officer: Chief Financial Officer |
8856 SOUTH STREET, FISHERS IN 46038 |
| Mark C. Jensen |
director, 10 percent owner, officer: Chief Executive Officer |
8856 SOUTH STREET, FISHERS IN 46038 |
| Golden Properties Ltd. |
10 percent owner |
#500, 1177 WEST HASTINGS STREET, VANCOUVER A1 V6E 2K3 |
| Thomas M. Sauve |
director, 10 percent owner, officer: President |
8856 SOUTH STREET, FISHERS IN 46038 |
| Gerardine G. Botte |
director |
12115 VISIONARY WAY, SUITE 174, FISHERS IN 456038 |
| Michael G. Layman |
director |
7583 WILD MINT COURT, WESTERVILLE OH 43082 |
| Randal V. Stephenson |
director |
35 EAST 84TH STREET, APT. 4C, NEW YORK NY 10028 |
| Taplin Courtenay O. |
director |
9370 METCALF ROAD, WAITE HILL OH 44094 |
| Ian Sadler |
director |
10760 ELDORADO CIRCLE, NOBLESVILLE IN 46060 |
| Tarlis Thompson |
officer: Chief Operating Officer |
PO BOX 606, FISHERS IN 46038 |
| William D Bishop |
director |
8856 SOUTH STREET, FISHERS IN 46038 |
| James C New |
director |
7289 GARDEN RD, SUITE 200, RIVIERA BEACH FL 33404 |
| High Tech Fueling, Service & Distribution, Inc. |
other: Corporation with common owners |
7135 COLLINS AVENUE, SUITE 624, MIAMI BEACH FL 33141 |
| Goran Antic |
10 percent owner |
7135 COLLINS AVE NO. 1234, MIAMI BEACH FL 33141 |
| Indrajith Andrew Weeraratne |
director, 10 percent owner, officer: Chief Executive Officer |
7135 COLLINS AVE NO.624, MIAMI BEACH FL 33141 |
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