What is Altria 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, Altria Group's Probability of Financial Distress (%) is 0.06%.
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 Altria Group's Probability of Financial Distress (%)
For the Tobacco subindustry, Altria 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.
Altria Group's Probability of Financial Distress (%) Distribution in the Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Altria Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Altria Group's Probability of Financial Distress (%) falls into.
Altria 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 |
| = | -7.35 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.06% |
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).
Altria Group (Altria Group) Business Description
Traded in Other Exchanges
Address
6601 West Broad Street, Richmond, VA, USA, 23230
Altria comprises Philip Morris USA, U.S. Smokeless Tobacco, John Middleton, Horizon Innovations and Helix Innovations. It holds a 10% interest in the world's largest brewer, Anheuser-Busch InBev. Through its tobacco subsidiaries, Altria holds the leading position in cigarettes and smokeless tobacco in the United States and the number-two spot in machine-made cigars. The company's Marlboro brand is the leading cigarette brand in the U.S. with a 42% annual share in 2022. Altria holds a 42% stake in cannabis manufacturer Cronos, has acquired Njoy Holdings in 2023, and recently exited its strategic investment in Juul Labs.
Executives
| Clarke Ian L.t. |
director |
6601 W BROAD ST, RICHMOND VA 23230 |
| Robert Matthew Davis |
director |
6601 W. BROAD STREET, RICHMOND VA 23230 |
| Jacinto J Hernandez |
director |
777 HIDDEN RIDGE, IRVING TX 75038 |
| Mario Max Yzaguirre |
director |
1515 WEST 190TH STREET, SUITE 275, GARDENA CA 90248 |
| Marjorie Mary Connelly |
director |
2580 PALMER DR, KESWICK VA 22947 |
| Ellen R Strahlman |
director |
ALTRIA GROUP, INC., 6601 W. BROAD STREET, RICHMOND VA 23230 |
| Nabil Y Sakkab |
director |
6601 WEST BROAD STREET, RICHMOND VA 23230 |
| Virginia E Shanks |
director |
4170 CAUGHLIN PARKWAY, RENO NV 89519 |
| Casteen John T Iii |
director |
301 S. COLLEGE STREET, 30TH FLOOR, NC0630, CHARLOTTE NC 28288-0630 |
| Kathryn B. Mcquade |
director |
6601 WEST BROAD STREET, RICHMOND VA 23230 |
| Kiely W Leo Iii |
director |
|
| Mark Newman |
director |
1011 WARRENVILLE ROAD, SUITE 600, LISLE IL 60532 |
| Kelly Ennis Debra J |
director |
4405 A INTERNATIONAL BLVD, NORCROSS GA 30093 |
| Surgner W Hildebrandt Jr |
officer: VP, Corp. Sec'y & Assoc. GC |
6601 WEST BROAD STREET, RICHMOND VA 23230 |
| Daniel J Bryant |
officer: Vice President & Treasurer |
6601 WEST BROAD STREET, RICHMOND VA 23230 |
Altria Group (Altria Group) Headlines
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