What is Broadway Financial 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, Broadway Financial's Probability of Financial Distress (%) is 0.20%.
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 Broadway Financial's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Broadway Financial'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.
Broadway Financial's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Broadway Financial's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Broadway Financial's Probability of Financial Distress (%) falls into.
Broadway Financial 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 |
| = | -6.21 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.20% |
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 banks, 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).
Broadway Financial (Broadway Financial) Business Description
Traded in Other Exchanges
N/A
Address
4601 Wilshire Boulevard, Suite 150, Los Angeles, CA, USA, 90010
Broadway Financial Corp is active in the financial services domain. It is a savings and loan holding company in the United States. The Bank's business consists of deposits from the general public and using such deposits, together with borrowings and other funds, to make mortgage loans secured by residential properties and commercial real estate. Its deposits consist of passbook savings accounts, checking accounts, and negotiable order of withdrawal accounts, money market accounts and fixed-term certificates of deposit.
Executives
| Lashanya Demetrice Washington |
officer: EVP, Chief Credit Officer |
10616 CHERYL TURN, WALDORF MD 20603 |
| Brian E Argrett |
director, officer: President/CEO |
12555 W. JEFFERSON BLVD., LOS ANGELES CA 90066 |
| Thomas Andrew Nida |
officer: EVP, Market Executive |
6445 LUZON AVENUE, N.Q., #517, WASHINGTON DC 20012 |
| Brenda J Battey |
officer: EVP/Chief Financial Officer |
4800 WILSHIRE BOULEVARD, LOS ANGELES CA 90036 |
| Ruth Mccloud |
officer: EVP/COO |
5055 WILSHIRE BOULEVARD, SUITE 500, LOS ANGELES CA 90036 |
| Sonja Sanders Wells |
officer: EVP/E. Commercial Reg. Exec |
540 N STREET SW, UNIT-S-103, WASHINGTON DC 20024 |
| John Frederick Tellenbach |
officer: EVP, West Comm. Reg. Exec. |
26838 INDIAN PEAK RD., RANCHO PALOS VERDES CA 90275 |
| William A Longbrake |
director |
C/O WASHINGTON MUTUAL INC, 1201 THIRD AVE , WMT 1503, SEATTLE WA 98111 |
| John Driver |
director |
13983 ARBOLITOS DRIVE, POWAY CA 92064 |
| City First Enterprises Inc. |
10 percent owner |
1 THOMAS CIRCLE NW, STE 700, WASHINGTON DC 20005 |
| Mary Ann Donovan |
director |
513 7TH STREET NE, WASHINGTON DC 20002 |
| David J. Mcgrady |
director |
1132 23RD AVENUE E., SEATTLE WA 98112 |
| Shannan Alicia Herbert |
officer: EVP/Chief Credit Officer |
10104 RUNNING BROOK LANE, UPPER MARLBORO MD 20772 |
| Marie C Johns |
director |
WLR FOODS INC, P O BOX 7000, BROADWAY VA 22815 |
| Jack T Thompson |
director |
100 JERICHO QUADRANGLE, SUITE 100, JERICHO NY 11753 |
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