What is National Instruments 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, National Instruments's Probability of Financial Distress (%) is 0.01%.
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 National Instruments's Probability of Financial Distress (%)
For the Software - Application subindustry, National Instruments'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.
National Instruments's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, National Instruments's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where National Instruments's Probability of Financial Distress (%) falls into.
National Instruments 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 |
| = | -8.88 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.01% |
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).
National Instruments (National Instruments) Business Description
Traded in Other Exchanges
N/A
Address
11500 North MoPac Expressway, Austin, TX, USA, 78759
National Instruments provides testing and measurement equipment and integrated, software-led solutions to serve high-complexity automated testing in late product development. NI serves a long tail of more than 30,000 customers in myriad end markets but focuses on the semiconductor, transportation, and aerospace and defense verticals.
Executives
| Ritu Favre |
officer: Executive Vice President |
12367 CROSTHWAITE CIRCLE, POWAY CA 92064 |
| Scott Arthur Rust |
officer: Executive Vice President |
C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759 |
| Alexander M Davern |
officer: Senior Vice President and CFO |
C/O NATIONAL INSTRUMENTS, 11500 MOPAC BLDG C, AUSTIN TX 78759 |
| Thomas Benjamin |
officer: Executive Vice President |
C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC EXPRESSWAY, AUSTIN TX 78759 |
| Eric Howard Starkloff |
director, officer: President & CEO |
11500 NORTH MOPAC, BUILDING C, AUSTIN TX 78759 |
| Daniel Berenbaum |
officer: Chief Financial Officer, EVP |
C/O EVERSPIN TECHNOLOGIES, INC., 5670 W. CHANDLER BLVD., SUITE 100, CHANDLER AZ 85226 |
| Cashman James E Iii |
director |
2600 ANSYS DRIVE, CANONSBURG PA 15317 |
| Gerhard Paul Fettweis |
director |
C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759 |
| Michael E Mcgrath |
director |
11701 LUNA ROAD, DALLAS TX 75234 |
| Liam Griffin |
director |
5260 CALIFORNIA AVENUE, IRVINE CA 92617 |
| Gayla J Delly |
director |
3000 TECHNOLOGY DR, ANGLETON TX 77515 |
| Jason Elliot Green |
officer: Chief Revenue Officer & EVP |
C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759 |
| Karen Marie Rapp |
officer: Chief Financial Officer & EVP |
C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759 |
| Carla Pineyro Sublett |
officer: Chief Marketing Officer |
C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759 |
| Jeffrey L Kodosky |
director |
C/O NATIONAL INSTRUMENTS CORP, 11500 N. MOPAC EXPRESSWAY, AUSTIN TX 78759 |
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