What is Better Choice Co 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, Better Choice Co's Probability of Financial Distress (%) is 97.95%.
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 Better Choice Co's Probability of Financial Distress (%)
For the Packaged Foods subindustry, Better Choice Co'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.
Better Choice Co's Probability of Financial Distress (%) Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Better Choice Co's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Better Choice Co's Probability of Financial Distress (%) falls into.
Better Choice Co 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 |
| = | 3.87 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 97.95% |
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).
Better Choice Co (Better Choice Co) Business Description
Traded in Other Exchanges
N/A
Address
12400 Race Track Road, Tampa, FL, USA, 33626
Better Choice Co Inc is a pet health and wellness portfolio company, offering consumers a wide variety of recognized premium pet products and hemp-derived CBD supplements. Its portfolio includes kibble and canned dog and cat food, freeze-dried raw dog food and treats, vegan dog food and treats, oral care products, supplements and grooming aids. Its core products sold under the Halo brand are sustainably sourced, derived from real whole meat and no rendered meat meal and include non-GMO fruits and vegetables. Its core products sold under the TruDog brand are made according to nutritional philosophy of fresh, meat-based nutrition and minimal processing. The company manages its entire business in one operating segment.
Executives
| Michael Young |
director |
12400 RACE TRACK ROAD, TAMPA FL 33626 |
| Donald Young |
officer: EVP, Sales |
12400 RACE TRACK ROAD, TAMPA FL 33626 |
| Robert Sauermann |
officer: COO |
12400 RACE TRACK ROAD, TAMPA FL 33626 |
| Scott Lerner |
officer: CEO |
12400 RACE TRACK ROAD, TAMPA FL 33626 |
| Sharla A Cook |
officer: CFO |
12400 RACE TRACK ROAD, TAMPA FL 33626 |
| Word John M Iii |
director, 10 percent owner |
12400 RACE TRACK ROAD, TAMPA FL 33626 |
| Lionel F. Conacher |
director |
C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021 |
| Arlene Dickinson |
director |
12400 RACE TRACK ROAD, TAMPA FL 33626 |
| Gil Fronzaglia |
director |
12400 RACE TRACK ROAD, TAMPA FL 33626 |
| Jeff D Davis |
director |
12400 RACE TRACK ROAD, TAMPA FL 33626 |
| Lori Taylor |
director |
12400 RACE TRACK ROAD, TAMPA FL 33626 |
| David Richard Lelong |
director, 10 percent owner, officer: President |
70 WASHINGTON ST., APT. 6K, BROOKLYN NY 11201 |
| Michael S Morrow |
director, 10 percent owner, officer: Chairman and President |
4791 S KINGS ROW DRIVE APT 23, SALT LAKE CITY X1 84117-5993 |
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