What is Capri Holdings 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, Capri Holdings's Probability of Financial Distress (%) is 0.07%.
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 Capri Holdings's Probability of Financial Distress (%)
For the Luxury Goods subindustry, Capri Holdings'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.
Capri Holdings's Probability of Financial Distress (%) Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Capri Holdings's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Capri Holdings's Probability of Financial Distress (%) falls into.
Capri Holdings 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 |
| = | -7.24 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.07% |
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).
Capri Holdings (Capri Holdings) Business Description
Traded in Other Exchanges
Address
90 Whitfield Street, 2nd Floor, London, GBR, W1T 4EZ
Michael Kors, Versace, and Jimmy Choo are the brands of Capri Holdings, a marketer, distributor, and retailer of upscale accessories and apparel. Michael Kors, Capri's largest brand, offers handbags, footwear, and apparel through more than 800 company-owned stores, wholesale, and e-commerce. Versace (acquired in 2018) is known for its ready-to-wear luxury fashion, while Jimmy Choo (acquired in 2017) is best known for women's luxury footwear. John Idol has served as CEO since 2003.
Executives
| Cedric Wilmotte |
officer: CEO - Michael Kors |
C/O CAPRI HOLDINGS LIMITED, 90 WHITFIELD STREET, 2ND FLOOR, LONDON X0 W1T 4EZ |
| Mahesh Madhavan |
director |
C/O CAPRI HOLDINGS LIMITED, 90 WHITFIELD STREET, 2ND FLOOR, LONDON X0 W1T 4EZ |
| Judy Gibbons |
director |
C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036 |
| John D Idol |
director, officer: Chairman & CEO |
650 MADISON AVE, NEW YORK NY 10022 |
| Daniel Purefoy |
officer: SVP, Global Ops |
33 KINGSWAY, LONDON X0 WC2B 6UF |
| Thomas Jr. Edwards |
officer: EVP, CFO, COO & Treasurer |
6820 LBJ FREEWAY, DALLAS TX 75240 |
| Stephen F Reitman |
director |
11 WEST 42ND STREET, 21ST FLOOR, NEW YORK NY 10036 |
| Krista A Mcdonough |
officer: SVP, General Counsel |
33 KINGSWAY, LONDON X0 WC2B 6UF |
| Joshua Schulman |
officer: CEO - Michael Kors |
603 WEST 50TH STREET, NEW YORK X1 10019 |
| Marilyn C Crouther |
director |
1902 RESTON METRO PLAZA, RESTON VA 20190 |
| Jenna Hendricks |
officer: SVP, Chief People Officer |
33 KINGSWAY, LONDON X0 WC2B 6UF |
| Jean Tomlin |
director |
C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036 |
| Freestone Robin Anthony David |
director |
33 KINGSWAY, LONDON X0 WC2B 6UF |
| Ann Mclaughlin Korologos |
director |
PO BOX 3599, BATTLECREEK MI 49016-3599 |
| Cathy Marie Robinson |
officer: SVP, Corp Str & Ch Ops Off |
C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036 |
Capri Holdings (Capri Holdings) Headlines
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