What is EIDP 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, EIDP'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 EIDP's Probability of Financial Distress (%)
For the Agricultural Inputs subindustry, EIDP'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.
EIDP's Probability of Financial Distress (%) Distribution in the Agriculture Industry
For the Agriculture industry and Basic Materials sector, EIDP's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where EIDP's Probability of Financial Distress (%) falls into.
EIDP 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).
EIDP (CTAPA.PFD) Business Description
Traded in Other Exchanges
Address
9330 Zionsville Road, Indianapolis, IN, USA, 46268
EIDP Inc formerly, E.I. du Pont de Nemours & Co provides Agricultural solutions to the farmers. The company operates in two segments: seed and crop protection. The seed segment develops and supplies commercial seed combining superior germplasm with advanced traits to produce high yield potential for farmers, while the crop protection segment supplies products to protect crop yields against weeds, insects, and disease. Some of its products include Corn, Soybean, oilseeds, Fungicides, Herbicides, and Insecticides. Its geographical segments include North America, EMEA(Europe, the Middle East, and Africa), Latin America, and the Asia Pacific. Nearly half of the revenue comes from North America.
Executives
| Rajan Gajaria |
officer: EVP, Business Platforms |
C/O CORTEVA, INC., 974 CENTRE ROAD, BLDG. 735, WILMINGTON DE 19805 |
| Fuerer Cornel B |
officer: SVP, Gen Counsel and Secretary |
C/O CORTEVA, INC., 974 CENTRE ROAD, BLDG. 735, WILMINGTON DE 19805 |
| Gregory R Page |
director |
EATON CENTER, 1111 SUPERIOR AVENUE, CLEVELAND OH 44114 |
| Lois D Juliber |
director |
1007 MARKET ST, WILMINGTON DE 19898 |
| Michael O. Johanns |
director |
DEERE & COMPANY, ONE JOHN DEERE PLACE, MOLINE IL 61265 |
| Collins James C. Jr. |
director, officer: Chief Executive Officer |
1007 MARKET STREET, D-9058, WILMINGTON DE 19898 |
| Gregory R Friedman |
officer: Executive VP, CFO |
C/O CORTEVA, INC., 974 CENTRE ROAD, BLDG. 735, WILMINGTON DE 19805 |
| Timothy P Glenn |
officer: EVP, Chief Commercial Officer |
C/O CORTEVA, INC., 974 CENTRE ROAD, BLDG. 735, WILMINGTON DE 19805 |
| Pat Ward |
director |
500 JACKSON STREET, COLUMBUS IN 47201 |
| Lee M Thomas |
director |
133 PEACHTREE ST NE, 41ST FL, ATLANTA GA 30303 |
| Robert A Brown |
director |
1007 MARKET STREET, D-9000, WILMINGTON DE 19898 |
| Lamberto Andreotti |
director |
BRISTOL-MYERS SQUIBB CO, 345 PARK AVENUE, NEW YORK NY 10154 |
| Marcos M Lutz |
director |
C/O CORTEVA AGRISCIENCE, CHESTNUT RUN PLAZA, 735, 974 CENTRE RD, WILMINGTON DE 19805 |
| Rebecca B. Liebert |
director |
PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272 |
| Nayaki R Nayyar |
director |
C/O VERITONE, INC., 575 ANTON BOULEVARD, SUITE 100, COSTA MESA CA 92626 |
EIDP (CTAPA.PFD) Headlines
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