What is Live Ventures 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, Live Ventures's Probability of Financial Distress (%) is 0.14%.
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 Live Ventures's Probability of Financial Distress (%)
For the Home Improvement Retail subindustry, Live Ventures'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.
Live Ventures's Probability of Financial Distress (%) Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Live Ventures's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Live Ventures's Probability of Financial Distress (%) falls into.
Live Ventures 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 |
| = | -6.57 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.14% |
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).
Live Ventures (Live Ventures) Business Description
Traded in Other Exchanges
Address
325 East Warm Springs Road, Suite 102, Las Vegas, NV, USA, 89119
Live Ventures Inc is a holding company for diversified businesses. It is focused on acquiring and operating profitable companies in various industries. The company operates in the business segments of Retail, which includes direct sales of entertainment and appliance products and services, Flooring Manufacturing, Steel Manufacturing, which includes the sale of steel plates, ground flat stock, and drill rods, and Corporate and Other. It derives key revenue from the Flooring Manufacturing segment which includes the manufacturing of carpets and rugs, yarn products, as well as a reseller of hard surface flooring products. Geographically the activities are carried out throughout the United States.
Executives
| John Isaac |
director, 10 percent owner |
501 W. BROADWAY, SUITE A212, SAN DIEGO CA 92101 |
| Dennis Gao |
director |
325 E. WARM SPRINGS ROAD, SUITE 102, LAS VEGAS NV 89119 |
| David Lee Verret |
officer: Chief Accounting Officer |
5900 COPPER CANYON DR., THE COLONY TX 75056 |
| Michael Jason Stein |
officer: Sr. VP, General Counsel |
325 E WARM SPRINGS ROAD, LAS VEGAS NV 89119 |
| Rodney Dale Spriggs |
officer: CEO, Vintage Stock, Inc. |
3703 RED FOX RUN, JOPLIN MO 64804 |
| Eric Adam Althofer |
officer: COO |
7707 DEERFIELD MANOR DR, CHARLOTTE NC 28270 |
| Thomas Robert Sedlak |
officer: CEO Precision Industries, Inc. |
87 PORTER HILL ROAD, WASHINGTON PA 15301 |
| Godfrey Weston A Jr |
officer: CEO, Marquis Industries, Inc. |
PO BOX 1308, CHATSWORTH GA 30705 |
| Virland A Johnson |
officer: Chief Financial Officer |
20488 N 86 LANE, PEORIA AZ 85382 |
| Richard Butler |
director |
4840 EAST JASMINE ST., SUITE 105, MESA AZ 85205 |
| Tyler Sickmeyer |
director |
1440 HOTEL CIRCLE NORTH, #423, SAN DIEGO CA 92108 |
| Isaac Capital Group, Llc |
10 percent owner |
501 W. BROADWAY, #A212, SAN DIEGO CA 92101 |
| Clarke Thomas J Jr |
director |
11534 VILLA VASARI, PALM BEACH GARDENS FL 33418 |
| Antonios Isaac |
director |
3525 DEL MAR HEIGHTS RD., #765, SAN DIEGO CA 92130 |
| John Kocmur |
director, 10 percent owner |
2490 EAST SUNSET ROAD, SUITE 100, LAS VEGAS NV 89120 |
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