What is OppFi 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, OppFi's Probability of Financial Distress (%) is 0.39%.
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 OppFi's Probability of Financial Distress (%)
For the Credit Services subindustry, OppFi'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.
OppFi's Probability of Financial Distress (%) Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, OppFi's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where OppFi's Probability of Financial Distress (%) falls into.
OppFi 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 |
| = | -5.54 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.39% |
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).
OppFi (OPFI) Business Description
Traded in Other Exchanges
N/A
Address
130 East Randolph Street, Suite 3400, Chicago, IL, USA, 60601
OppFi Inc is a financial technology platform that powers banks to help the everyday consumer gain access to credit with digital specialty finance products.
Executives
| Christopher J. Mckay |
officer: Chief Risk & Analytics Officer |
130 E. RANDOLPH STREET, SUITE 3300, CHICAGO IL 60601 |
| Pamela D. Johnson |
officer: Chief Accounting Officer |
130 E. RANDOLPH STREET, SUITE 3300, CHICAGO IL 60601 |
| Jocelyn Moore |
director |
222 BERKELEY STREET, FLOOR 5, BOSTON MA 02116 |
| Todd G. Schwartz |
director, 10 percent owner |
105 S. MAPLE STREET, ITASCA IL 60143 |
| Theodore G Schwartz |
director, 10 percent owner |
C/O APAC CUSTOMER SERVICES, INC., SIX PARKWAY NORTH, DEERFIELD IL 60015 |
| David Vennettilli |
director |
105 S. MAPLE STREET, ITASCA IL 60143 |
| Blackstone Aqua Master Sub-fund, A Sub-fund Of Blackstone Global Master Fund Icav |
10 percent owner |
345 PARK AVENUE, 29TH FLOOR, NEW YORK NY 10154 |
| Blackstone Inc. |
10 percent owner |
345 PARK AVENUE, NEW YORK NY 10154 |
| Blackstone Alternative Solutions L.l.c. |
10 percent owner |
C/O BLACKSTONE INC., 345 PARK AVE., NEW YORK NY 10154 |
| Stephen A Schwarzman |
10 percent owner |
C/O BLACKSTONE INC., 345 PARK AVE, NEW YORK NY 10154 |
| Blackstone Group Management L.l.c. |
10 percent owner |
C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154 |
| Blackstone Holdings I/ii Gp L.l.c. |
10 percent owner |
C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154 |
| Blackstone Holdings I L.p. |
10 percent owner |
C/O THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154 |
| Christina M Favilla |
director |
400 RELLA BOULEVARD, MONTEBELLO NY 10901 |
| Neville Crawley |
officer: President |
130 E. RANDOLPH STREET, SUITE 3300, CHICAGO IL 60601 |
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