What is Northern Technologies International 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, Northern Technologies International'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 Northern Technologies International's Probability of Financial Distress (%)
For the Specialty Chemicals subindustry, Northern Technologies International'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.
Northern Technologies International's Probability of Financial Distress (%) Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Northern Technologies International's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Northern Technologies International's Probability of Financial Distress (%) falls into.
Northern Technologies International 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 |
| = | -8.63 |
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).
Northern Technologies International (Northern Technologies International) Business Description
Traded in Other Exchanges
N/A
Address
4201 Woodland Road, P.O. Box 69, Circle Pines, MN, USA, 55014
Northern Technologies International Corp, or NTIC is a United States-based firm that develops and markets environmentally beneficial products and services world-wide either directly or through a network of joint ventures, distributors, and agents. It operates through two segments which include ZERUST products and services and Nature-Tec products. Its main business is providing corrosion prevention solutions that are marketed under the ZERUST brand. The company also sells a portfolio of bio-based and biodegradable (compostable) polymer resin compounds and finished products marketed under the Nature-Tec brand. The ZERUST brand generates a vast majority of the revenue for the company.
Executives
| Nancy E. Calderon |
director |
1285 WAKEFIELD TRAIL, RENO NV 89523 |
| Richard Nigon |
director |
CEDAR POINT CAPITAL, 150 SOUTH 5TH STREET, MINNEAPOLIS MN 55402 |
| Sarah E. Kemp |
director |
4201 WOODLAND ROAD, PO BOX 69, CIRCLE PINES MN 55014 |
| Pinho Cristina Lucia Duarte |
director |
4201 WOODLAND ROAD, PO BOX 69, CIRCLE PINES MN 55014 |
| Falkenhausen Konstantin Von |
director |
4201 WOODLAND ROAD, PO BOX 69, CIRCLE PINES MN 55014 |
| Barbara D. Colwell |
director |
4201 WOODLAND ROAD, CIRCLE PINES MN 55014 |
| G Patrick Lynch |
director |
4201 WOODLAND ROAD, CIRCLE PINES MN 55014 |
| Pierre Chenu |
director |
118B AVENUE W CHURCHILL, PO BOX 15, BRUSSELS C9 1180 |
| Mark J Stone |
director |
689 5TH AVENUE, 14TH FLOOR, NEW YORK NY 10022 |
| Inter Alia Holding Co |
10 percent owner |
|
| Juliane I Lynch |
10 percent owner |
23205 MERCANTILE ROAD, BEACHWOOD OH 44122 |
| Koh Soo Keong |
director |
4201 WOODLAND ROAD, POST OFFICE BOX 69, CIRCLE PINES MN 55014 |
| Tilman Bernhard Frank |
director |
4201 WOODLAND ROAD, POST OFFICE BOX 69, CIRCLE PINES MN 55014 |
| Sunggyu Lee |
director |
4912 MCKENNA CT, COLUMBIA MO 65203 |
| Ramani Narayan |
director |
4275 CONIFER CIRCLE, OKEMOS MI 48864 |
Northern Technologies International (Northern Technologies International) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NTIC has been successfully added to your