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Healthier Choices Management (Healthier Choices Management) Probability of Financial Distress (%) : 100.00% (As of May. 17, 2024)


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What is Healthier Choices Management 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, Healthier Choices Management'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 Healthier Choices Management's Probability of Financial Distress (%)

For the Grocery Stores subindustry, Healthier Choices Management'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.


Healthier Choices Management's Probability of Financial Distress (%) Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Healthier Choices Management's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Healthier Choices Management's Probability of Financial Distress (%) falls into.



Healthier Choices Management 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
=25.74

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

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).


Healthier Choices Management  (OTCPK:HCMC) 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.


Healthier Choices Management Probability of Financial Distress (%) Related Terms

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Healthier Choices Management (Healthier Choices Management) Business Description

Traded in Other Exchanges
N/A
Address
3800 North 28th Way, Hollywood, FL, USA, 33020
Healthier Choices Management Corp is a United States-based holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives. It offers Ada's Natural Market, a natural and organic grocery store offering fresh produce, bulk foods, vitamins, and supplements, Paradise Health & Nutrition's three stores offer fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat, and seafood, Mother Earth's Storehouse, is a two-store organic and health food and vitamin chain, and Greens Natural Foods offers organic produce and all-natural, non-GMO groceries & bulk foods. The operating segments of the company are Grocery and Vapor. Grocery segments account for the majority of its revenue.
Executives
Clifford J. Friedman director 5018 NW102 DRIVE, CORAL SPRINGS FL 33076
Anthony Panariello director 3214 SW 53RD COURT, HOLLYWOOD FL 33321
John Ollet officer: Chief Financial Officer 3800 NORTH 28TH WAY, HOLLYWOOD FL 33020
Christopher Santi officer: President and COO 3001 GRIFFIN RD, DANIA BEACH FL 33312
Jeffrey Elliot Holman officer: Chief Executive Officer 3341 N.E. 165TH STREET, NORTH MIAMI BEACH FL 33160
Gina Hicks officer: Chief Financial Officer 3001 GRIFFIN ROAD, DANIA BEACH FL 33312
Nik Raman director 171 MADISON AVENUE, 17TH FLOOR, NEW YORK NY 10016
William C Conway director 3001 GRIFFIN ROAD, DANIA BEACH FL 33312
Daniel Maclachlan director 2650 NORTH MILITARY TRAIL, SUITE 300, BOCA RATON FL 33431
James Joseph Martin officer: Chief Financial Officer 4400 BISCAYNE BLVD, SUITE # 670, MIAMI FL 33157
Gregory Brauser director, officer: President 4400 BISCAYNE BLVD #850, MIAMI FL 33137
Robert Swayman director 5022 NW 102 DRIVE, CORAL SPRINGS FL 33076
Angela Courtin director 3101 COLBY AVENEUE, LOS ANGELES CA 90066
Frank E Jaumot director 190 SE 19TH AVENUE, POMPANO BEACH FL 33060
Barrett Robert J Iii director 2075 REGENTS BLVD, WEST PALM BEACH FL 33409

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