What is Global Tech Industries Group 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 Tech Industries Group's Probability of Financial Distress (%) is 100.00%.
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 Tech Industries Group's Probability of Financial Distress (%)
For the Conglomerates subindustry, Global Tech Industries Group'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 Tech Industries Group's Probability of Financial Distress (%) Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Global Tech Industries Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Global Tech Industries Group's Probability of Financial Distress (%) falls into.
Global Tech Industries Group 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 |
| = | 12.39 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 100.00% |
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).
Global Tech Industries Group (Global Tech Industries Group) Business Description
Traded in Other Exchanges
N/A
Address
511 Sixth Avenue, Suite 800, New York, NY, USA, 10011
Global Tech Industries Group Inc currently has no operations. It is seeking opportunities to utilize its intellectual properties and relationships with valued business associates.
Executives
| David I Reichman |
director, officer: CEO and President |
511 AVENUE OF THE AMERICAS, SUITE 800, NEW YORK NY 10011 |
| Frank Benintendo |
director |
11 SEAMAN COURT, OLD BRIDGE NJ 08857 |
| Don Harold Gilbert |
director |
PO BOX 090122, STATEN ISLAND NY 10309 |
| Kathy M Griffin |
director, officer: President |
98 BLACK ROCK DRIVE, HINGHAM MA 02043 |
| Global Tech Industries Group, Inc. |
director, 10 percent owner, officer: Chief Executive Officer |
511 SIXTH AVENUE, SUITE 800, NEW YORK NY 10011 |
| Tree Top Industries, Inc. Profit Sharing Plan Trust |
other: Employee Trust |
40 CENTRAL PARK SOUTH, 8H, NEW YORK NY 10019 |
| Robert Hantman |
director |
511 SIXTH AVENUE, SUITE 800, NEW YORK NY 10011 |
| Michael Valle |
director |
511 AVENUE OF THE AMERICAS, SUITE 800, NEW YORK NY 10011 |
| L G Davis |
10 percent owner |
511 AVENUE OF THE AMERICAS, SUITE 800, NEW YORK NY 10011 |
| Justine Reichman |
10 percent owner |
511 AVENUE OF THE AMERICAS, SUITE 800, NEW YORK NY 10011 |
| Trisha Woods |
10 percent owner, officer: President of Wholly-Owned Sub. |
1041 N. FORMOSA AVE., WRITERS' BLDG 2 & 3, WEST HOLLYWOOD CA 90046 |
| James Black |
10 percent owner |
1041 N. FORMOSA AVE., WRITERS' BLDG 2 & 3, WEST HOLLYWOOD CA 90046 |
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