What is WK Kellogg Co 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, WK Kellogg Co'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 WK Kellogg Co's Probability of Financial Distress (%)
For the Packaged Foods subindustry, WK Kellogg Co'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.
WK Kellogg Co's Probability of Financial Distress (%) Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, WK Kellogg Co's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where WK Kellogg Co's Probability of Financial Distress (%) falls into.
WK Kellogg Co 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
*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).
WK Kellogg Co (WK Kellogg Co) Business Description
Traded in Other Exchanges
Address
One Kellogg Square, Battle Creek, MI, USA, 49016
WK Kellogg is the second-largest cereal manufacturer in North America. Its cereal brands include Special K, Frosted Flakes, Raisin Bran, Froot Loops, Frosted Mini Wheats, Kashi, Corn Flakes, Rice Krispies, Apple Jacks, and Bear Naked. The company was spun off from the former Kellogg business, now known as Kellanova, where the former firm's global snacks portfolio and international cereal are now housed. WK Kellogg, which began trading in October 2023, generates the bulk of its sales (about 88% of its proforma fiscal 2022 base) from its home turf.
Executives
| Sherry Brice |
officer: Chief Supply Chain Officer |
C/O WK KELLOGG CO, ONE KELLOGG SQUARE, BATTLE CREEK MI 49016 |
| Norma Barnes-euresti |
director |
ONE KELLOGG SQUARE, BATTLE CREEK MI 49016 |
| David Mckinstray |
officer: Chief Financial Officer |
ONE KELLOGG SQUARE, BATTLE CREEK MI 49016 |
| Doug Vandevelde |
officer: Chief Growth Officer |
ONE KELLOGG SQUARE, BATTLE CREEK MI 49016 |
| Gary H Pilnick |
director, officer: President |
|
| Bruce Alan Brown |
officer: Chief Customer Officer |
ONE KELLOGG SQUARE, BATTLE CREEK MI 49016 |
| Michael Corbo |
director |
C/O COLGATE-PALMOLIVE COMPANY, 300 PARK AVENUE, NEW YORK NY 10022 |
| Mindy Sherwood |
director |
C/O WK KELLOGG CO, ONE KELLOGG SQUARE, BATTLE CREEK MI 49016 |
| Julio N Nemeth |
director |
ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202 |
| R David Banyard |
director |
MYERS INDUSTRIES INC., 1293 SOUTH MAIN STREET, AKRON OH 44301 |
| Ramon Murguia |
director |
ONE MICHIGAN AVENUE EAST, BATTLE CREEK MI 49017-4058 |
| Kellogg W K Foundation Trust |
10 percent owner |
50 S. LA SALLE ST., B-10, CHICAGO IL 60603 |
| Kellogg W K Foundation |
10 percent owner |
|
| G Zachary Gund |
director |
14 NASSAU STREET, PRINETON NJ 08542 |
| Ellanova |
10 percent owner |
412 N WELLS ST, CHICAGO IL 60654 |
WK Kellogg Co (WK Kellogg Co) Headlines
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