What is Capital Properties 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, Capital Properties's Probability of Financial Distress (%) is 0.03%.
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 Capital Properties's Probability of Financial Distress (%)
For the Real Estate Services subindustry, Capital Properties'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.
Capital Properties's Probability of Financial Distress (%) Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Capital Properties's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Capital Properties's Probability of Financial Distress (%) falls into.
Capital Properties 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 |
| = | -8.23 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
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).
Capital Properties (Capital Properties) Business Description
Traded in Other Exchanges
N/A
Address
5 Steeple Street, Unit 303, Providence, RI, USA, 02903
Capital Properties Inc is a real estate company. The company's business activities include the long-term leasing of certain real estate interests in downtown Providence, Rhode Island, the leasing of a portion of its building under short-term leasing arrangements, and the leasing of locations along interstate and primary highways in Rhode Island and Massachusetts. The properties of the company include historic buildings in and adjacent to the Capital Center District in Providence, Rhode Island, as well as owns several locations on which billboard faces are constructed. Its only operating segment is Leasing.
Executives
| Daniel T Noreck |
director |
75 HAMMOND STREET, WORCESTER MA 01610 |
| Linda Eder |
other: See Remarks |
100 DEXTER ROAD, EAST PROVIDENCE RI 02914 |
| Eder 2022 Community Property Trust |
10 percent owner |
220 SUNRISE AVENUE, SUITE 205, PALM BEACH FL 33480 |
| Robert H Eder |
director, 10 percent owner, officer: CEO & President |
5 STEEPLE STREET, #303, PROVIDENCE RI 02903 |
| Susan R. Johnson |
officer: Treasurer |
5 STEEPLE STREET, UNIT 303, PROVIDENCE RI 02903 |
| Steven G Triedman |
director |
25 POWER STREET, PROVIDENCE RI 02903 |
| P Scott Conti |
officer: President |
75 HAMMOND STREET, WORCESTER MA 01610 |
| Craig M Scott |
director |
75 HAMMOND STREET, WORCESTER MA 01610 |
| Matthew C Baum |
director |
152 IRVING AVENUE, PROVIDENCE RI 02906 |
| Todd D Turcotte |
officer: Vice President |
100 DEXTER ROAD, EAST PROVIDENCE RI 02914 |
| Roy J Nirschel |
director |
45 FERRY ROAD, BRISTOL RI 02809 |
| Alfred J Corso |
director |
6 LEWIS STREET, BARRINGTON RI 02806 |
| Stephen J Carlotti |
10 percent owner |
1500 FLEET CENTER, PROVIDENCE RI 02903 |
| Barbara J Dreyer |
officer: Treasurer |
|
| Harris N Rosen |
director |
|
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