Global Gold (Global Gold) Probability of Financial Distress (%) : 0.00% (As of May. 22, 2024)

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What is Global Gold 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, Global Gold's Probability of Financial Distress (%) is 0.00%.

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 Global Gold's Probability of Financial Distress (%)

For the Gold subindustry, Global Gold'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.

Global Gold's Probability of Financial Distress (%) Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Global Gold's Probability of Financial Distress (%) distribution charts can be found below:

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

Global Gold 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%
	=	0.00%

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

MB	=	Market Cap	/	Adjusted Book Equity
	=	Market Cap	/	(Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

Global Gold (OTCPK:GBGD) 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.

Global Gold Probability of Financial Distress (%) Related Terms

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Global Gold (Global Gold) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Global Gold Corp (OTCPK:GBGD) » Definitions » Probability of Financial Distress (%)

Comparable Companies

Traded in Other Exchanges

N/A

Address

555 Theodore Fremd Avenue, Suite C208, Rye, NY, USA, 10580

Website

http://www.globalgoldcorp.com

Global Gold Corp is an exploration-stage company. It operates as an international gold mining, development, and exploration company with mining properties in Armenia, Canada, and Chile. Business activity of the firm is functioned through the production of gold, silver and other precious metals segment. The company holds interests in the Toukhmanuk property in the North Central Armenian Belt; and Hankavan and Marjan properties located in Armenia. It also holds a royalty interest in the Cochrane Pond property in Newfoundland, Canada.

Executives

Farallon Capital Institutional Partners, L.p.	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON PARTNERS, L.L.C., ONE MARITIME PLAZA, SUITE 2100, SAN FRANCISCO CA 94111
Richard H. Voon	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON CAPITAL MANAGEMENT, L.L.C. ONE MARITIME PLAZA, SUITE 2100 SAN FRANCISCO CA 94111
Daniel J. Hirsch	10 percent owner, other: Member of Group Owning 10%	748 DIAMOND STREET, SAN FRANCISCO CA 94114
Ashish H Pant	10 percent owner, other: Member of Group Owning 10%	390 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10022
Douglas M Macmahon	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON CAPITAL MANAGEMENT, L.L.C., 390 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10022
Spokes Andrew J M	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON CAPITAL MANAGEMENT, L.L.C., ONE MARITIME PLAZA, SUITE 2100, SAN FRANCISCO CA 94111
Jason E Moment	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON CAPITAL MANAGEMENT, L.L.C., ONE MARITIME PLAZA, SUITE 2100, SAN FRANCISCO CA 94111
Farallon Capital Offshore Investors Ii, L.p.	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON CAPITAL MANAGEMENT, L.L.C., ONE MARITIME PLAZA, SUITE 2100, SAN FRANCISCO CA 94111
Rajiv A Patel	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON CAPITAL MANAGEMENT, L.L.C., ONE MARITIME PLAZA, SUITE 2100, SAN FRANCISCO CA 94111
William F Duhamel	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON CAPITAL MANAGEMENT, L.L.C., ONE MARITIME PLAZA, SUITE 2100, SAN FRANCISCO CA 94111
Richard B Fried	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON CAPITAL MANAGEMENT, L.L.C., ONE MARITIME PLAZA, SUITE 2100, SAN FRANCISCO CA 94111
Monica R Landry	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON CAPITAL MANAGEMENT, L.L.C., ONE MARITIME PLAZA, SUITE 2100, SAN FRANCISCO CA 94111
Mark C Wehrly	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON CAPITAL MANAGEMENT, L.L.C., ONE MARITIME PLAZA, SUITE 2100, SAN FRANCISCO CA 94111
Stephen L Millham	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON CAPITAL MANAGEMENT, L.L.C., ONE MARITIME PLAZA, SUITE 2100, SAN FRANCISCO CA 94111
Farallon Capital Institutional Partners Iii Lp	10 percent owner, other: Member of Group Owning 10%	C/O FARALLON CAPITAL MANAGEMENT, L.L.C., ONE MARITIME PLAZA, SUITE 2100, SAN FRANCISCO CA 94111

Global Gold (Global Gold) Headlines

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