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Diebold Nixdorf (Diebold Nixdorf) Probability of Financial Distress (%) : 50.00% (As of Apr. 28, 2024)


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What is Diebold Nixdorf 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, Diebold Nixdorf'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 Diebold Nixdorf's Probability of Financial Distress (%)

For the Software - Application subindustry, Diebold Nixdorf'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.


Diebold Nixdorf's Probability of Financial Distress (%) Distribution in the Software Industry

For the Software industry and Technology sector, Diebold Nixdorf's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Diebold Nixdorf's Probability of Financial Distress (%) falls into.



Diebold Nixdorf 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

NIMTAAVG=Net Income / Market Total Assets
=Net Income / (Market Cap + Total Liabilities)

*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

TLMTA=Total Liabilities / Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For non-financial companies, CASHMTA is measured as:

CASHMTA=Cash, Cash Equivalents, Marketable Securities / Market Total Assets

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).


Diebold Nixdorf  (NYSE:DBD) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.


Diebold Nixdorf Probability of Financial Distress (%) Related Terms

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Diebold Nixdorf (Diebold Nixdorf) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Diebold Nixdorf Inc (NYSE:DBD) » Definitions » Probability of Financial Distress (%)
Traded in Other Exchanges
Address
50 Executive Parkway, P.O. Box 2520, Hudson, OH, USA, 44236-1605
Diebold Nixdorf Inc is engaged in providing software and hardware services for financial and retail industries. The customer segments of the company are banking which offers integrated solutions for financial institutions and retail which offers solutions, software, and services which improve the checkout process for retailers.
Executives
Octavio Marquez officer: President and CEO C/O DIEBOLD NIXDORF, INCORPORATED, 50 EXECUTIVE PKWY, HUDSON OH 44236
Brian D Connolly 10 percent owner 40 MIDDLESEX TURNPIKE, BEDFORD MA 01730
World Investors Capital 10 percent owner 333 SOUTH HOPE STREET, 55TH FLOOR, LOS ANGELES CA 90071
Millstreet Capital Management Llc 10 percent owner 545 BOYLSTON STREET, 8TH FLOOR, BOSTON MA 02116
Craig Kelleher 10 percent owner 545 BOYLSTON STREET 8TH FLOOR, BOSTON MA 02116
Gary G Greenfield director AVID, 75 NETWORK DRIVE, BURLINGTON MA 01803
Mr. Gary G. Greenfield Member of the Board of Directors
Mr. Octavio Marquez President and CEO
Ilhami Cantadurucu officer: EVP - Global Retail C/O DIEBOLD NIXDORF, INCORPORATED, P.O. BOX 2520, HUDSON OH 44236
Elizabeth Christine Radigan officer: EVP - Chief People Officer C/O/ DIEBOLD NIXDORF, INCORPORATED, 50 EXECUTIVE PKWY, P.O. BOX 2520, HUDSON OH 44236
Emanuel R Pearlman director 250 EAST 79TH STREET, NEW YORK NY 10075
Marjorie L. Bowen director 225 6TH STREET, MANHATTAN BEACH CA 90266
Jonathan Myers officer: EVP - Global Banking C/O DIEBOLD NIXDORF, INCORPORATED, 50 EXECUTIVE PKWY, HUDSON OH 44236
David Alan Caldwell officer: EVP - Strategy & Corp Dev C/O DIEBOLD NIXDORF, INCORPORATED, 50 EXECUTIVE PKWY, HUDSON OH 44236
Hermann Friedrich Wimmer officer: EVP - Global Retail C/O DIEBOLD NIXDORF, INCORPORATED, 50 EXECUTIVE PKWY, HUDSON OH 44236