What is Beneficient 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, Beneficient's Probability of Financial Distress (%) is 50.00%.
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 Beneficient's Probability of Financial Distress (%)
For the Asset Management subindustry, Beneficient'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.
Beneficient's Probability of Financial Distress (%) Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Beneficient's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Beneficient's Probability of Financial Distress (%) falls into.
Beneficient 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 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 50.00% |
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).
Beneficient (Beneficient) Business Description
Traded in Other Exchanges
N/A
Address
325 N. Saint Paul Street, Suite 4850, Dallas, TX, USA, 75201
Beneficient is a technology-enabled financial services holding company that (together with its subsidiaries) provides simple, rapid, and cost-effective liquidity solutions to participants in the alternative asset industry through its end-to-end online platform, AltAccess. BCG's products and services are designed to meet the unmet needs of mid-to-high net-worth individual investors, small-to-midsize institutional investors, family offices, and fund general partners. Its bespoke liquidity solutions for otherwise illiquid alternative asset investments are delivered through proprietary technology and an innovative financing and trust structure. It has three reportable segments consisting of Ben Liquidity, Ben Custody and Customer ExAlt Trusts.
Executives
| Gwg Wind Down Trust |
10 percent owner |
PO BOX 61209, 700 SMITH ST., HOUSTON TX 77208-1209 |
| Elizabeth C. Freeman |
10 percent owner |
PO BOX 61209, 700 SMITH ST., HOUSTON TX 77208-1209 |
| Derek L. Fletcher |
director, officer: See Remarks |
325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201 |
| Gwg Life Usa, Llc |
10 percent owner |
325 NORTH ST. PAUL STREET, SUITE 2650, DALLAS TX 75201 |
| Gregory W. Ezell |
officer: Chief Financial Officer |
325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201 |
| Jeff Welday |
officer: See Remarks |
325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201 |
| Maria S. Rutledge |
officer: Chief Technology Officer |
325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201 |
| Scott W. Wilson |
officer: Chief Underwriting Officer |
325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201 |
| Samuel Hikspoors |
officer: Chief Risk Officer |
325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201 |
| Richard W Fisher |
director |
|
| James G. Silk |
director, officer: See Remarks |
325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201 |
| Emily B. Hill |
director |
325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201 |
| Gwg Holdings, Inc. |
10 percent owner |
325 N. ST. PAUL STREET, SUITE 2650, DALLAS TX 75201 |
| Cangany Peter T Jr |
director |
220 SOUTH 6TH STREET, SUITE 1200, MINNEAPOLIS MN 55402 |
| Brad K Heppner |
director, officer: See Remarks |
325 N SAINT PAUL STREET, SUITE 1200, DALLAS TX 75201 |
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