What is Magellan Midstream Partners LP 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, Magellan Midstream Partners LP's Probability of Financial Distress (%) is 0.02%.
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 Magellan Midstream Partners LP's Probability of Financial Distress (%)
For the Oil & Gas Midstream subindustry, Magellan Midstream Partners LP'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.
Magellan Midstream Partners LP's Probability of Financial Distress (%) Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Magellan Midstream Partners LP's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Magellan Midstream Partners LP's Probability of Financial Distress (%) falls into.
Magellan Midstream Partners LP 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 |
| = | -8.60 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
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).
Magellan Midstream Partners LP (Magellan Midstream Partners LP) Business Description
Traded in Other Exchanges
N/A
Address
One Williams Center, P.O. Box 22186, Tulsa, OK, USA, 74121-2186
Magellan Midstream Partners is a master limited partnership that operates pipelines and storage terminals in the Central and Eastern United States. Its assets transport, store, and distribute refined petroleum products and crude and earn a fee-based stream of cash flows. Assets include the country's longest petroleum pipeline network and several crude oil pipelines. Refined products make about 70% of operating margin, with the remainder mainly crude-oil pipelines.
Executives
| James R Hoskin |
officer: Senior Vice President |
ONE WILLIAMS CENTER, SUITE 2800, TULSA OK 74172 |
| James R Montague |
director |
FIVE RADNOR CORPORATE CENTER, SUITE 500, RADNOR PA 19087 |
| Kyle T Krshka |
officer: Senior Vice President |
ONE WILLIAMS CENTER, SUITE 2800, TULSA OK 74172 |
| Sivasankaran Somasundaram |
director |
C/O APERGY CORPORATION, 2445 TECHNOLOGY FOREST BLVD, BLD 4, FL 9, THE WOODLANDS TX 77381 |
| Melanie A Little |
officer: Senior Vice President |
ONE WILLIAMS CENTER, SUITE 2800, TULSA OK 74172 |
| Mark B Roles |
officer: Senior Vice President |
ONE WILLIAMS CENTER, SUITE 2800, TULSA OK 74172 |
| Lisa J Korner |
officer: Vice President |
ONE WILLIAMS CENTER, MD 28-1, TULSA OK 74172 |
| Chansoo Joung |
director |
C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017 |
| Jeff R Selvidge |
officer: Senior Vice President |
ONE WILLIAMS CENTER SUITE 2800, TULSA OK 74172 |
| Douglas J May |
officer: Senior Vice President |
ONE WILLIAMS CENTER, SUITE 4100, TULSA OK 74172 |
| Robert G Croyle |
director |
ONE WILLIAMS CENTER, SUITE 2800, TULSA OK 74172 |
| Michael C Pearson |
officer: Senior Vice President |
ONE WILLIAMS CENTER, SUITE 2800, TULSA OK 74172 |
| Jeffrey L Holman |
officer: Senior Vice President & CFO |
ONE WILLIAMS CENTER, TULSA OK 74172 |
| Michael N Mears |
officer: Vice President |
ONE WILLIAMS CENTER, MD 28-1, TULSA OK 74172 |
| Lori Gobillot |
director |
5103 CITY WEST BLVD., 4TH FLOOR, HOUSTON TX 77042 |
Magellan Midstream Partners LP (Magellan Midstream Partners LP) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MMP has been successfully added to your