What is Flux Power 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, Flux Power Holdings's Probability of Financial Distress (%) is 0.38%.
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 Flux Power Holdings's Probability of Financial Distress (%)
For the Electrical Equipment & Parts subindustry, Flux Power 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.
Flux Power Holdings's Probability of Financial Distress (%) Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Flux Power Holdings's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Flux Power Holdings's Probability of Financial Distress (%) falls into.
Flux Power 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 |
| = | -5.58 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.38% |
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).
Flux Power Holdings (Flux Power Holdings) Business Description
Traded in Other Exchanges
N/A
Address
2685 S. Melrose Drive, Vista, CA, USA, 92081
Flux Power Holdings Inc design, develop, manufacture, and sell a portfolio of lithium-ion energy storage solutions for electrification of a range of industrial commercial sectors which include material handling, airport ground support equipment (GSE), and other commercial and industrial applications It offers a high-power battery cell management system(BMS). The company's BMS provides three functions to its battery systems which include Cell Balancing, Monitoring, and Error Reporting.
Executives
| Jeffrey Curtis Mason |
officer: Vice President of Operations |
2685 S MELROSE DR, VISTA CA 92081 |
| Charles Scheiwe |
officer: CFO & Secretary |
1135 BAJA WAY, SAN MARCOS CA 92078 |
| Ronald F Dutt |
officer: CFO |
C/O SOLA INTERNATIONAL INC, 10590 W. OCEAN AIR DR. #300, SAN DIEGO CA 92130 |
| Michael Johnson |
10 percent owner |
2240 AUTO PARK WAY, ESCONDIDO CA 92029 |
| Esenjay Investments, Llc |
10 percent owner |
500 NORTH WATER ST., STE 1100 SOUTH, CORPUS CHRISTI TX 78401 |
| Lisa Walters-hoffert |
director |
C/O DARE BIOSCIENCE, INC., 10210 CAMPUS POINT DRIVE, SUITE 150, SAN DIEGO CA 92121 |
| Cheemin Bo-linn |
director |
4555 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054 |
| Jonathan Andrew Berry |
officer: COO |
985 POINSETTIA AVE STE A, VISTA CA 92081 |
| Cosentino John A Jr |
director |
C/O STURM RUGER & COMPANY INC, ONE LACEY PLACE, SOUTHPORT CT 06890 |
| Dale Thomas Robinette |
director |
15774 SUNSET DRIVE, POWAY CA 92064 |
| Cleveland Capital Management, L.l.c. |
10 percent owner |
1250 LINDA ST., SUITE 304, ROCKY RIVER OH 44116 |
| Wade Massad |
10 percent owner |
1414 AVENUE OF THE AMERICAS, NEW YORK NY 10019 |
| Timothy Collins |
director |
100 PINE STREET, SUITE 605, SAN FRANCISCO CA 94111 |
| James Gevarges |
10 percent owner |
2240 AUTO PARK WAY, ESCONDIDO CA 92029 |
| Christopher Lee Anthony |
director, 10 percent owner, officer: Chairman, CEO, President |
2240 AUTO PARK WAY, ESCONDIDO CA 92029 |
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