What is PVH 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, PVH's Probability of Financial Distress (%) is 0.04%.
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 PVH's Probability of Financial Distress (%)
For the Apparel Manufacturing subindustry, PVH'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.
PVH's Probability of Financial Distress (%) Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, PVH's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where PVH's Probability of Financial Distress (%) falls into.
PVH 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 |
| = | -7.76 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.04% |
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).
PVH (PVH) Business Description
Traded in Other Exchanges
Address
285 Madison Avenue, New York, NY, USA, 10017
PVH designs and markets branded apparel in more than 40 countries. Its key fashion categories include men's dress shirts, ties, sportswear, underwear, and jeans. Its two designer brands, Calvin Klein and Tommy Hilfiger, now generate all its revenue after its recent disposition of its smaller brands. PVH operates e-commerce sites and about 1,500 stores, licenses its brands to third parties, and distributes its merchandise through department stores and other wholesale accounts. The firm traces its history to 1881 and is based in New York City.
Executives
| Mark D Fischer |
officer: EVP, General Counsel & Sec. |
C/O PHILLIPS-VAN HEUSEN CORPORATION, 200 MADISON AVENUE, NEW YORK NY 10016 |
| Julie Fuller |
officer: Chief People Officer |
200 MADISON AVENUE, NEW YORK NY 10016 |
| Martijn Hagman |
officer: CEO, PVH Europe |
C/O PVH CORP., 200 MADISON AVENUE, NEW YORK NY 10016 |
| Eva Serrano |
officer: Global Brand President, CK |
C/O PVH CORP, 285 MADISONAVENUE, NEW YORK NY 10017 |
| James Holmes |
officer: EVP & Controller |
C/O PVH CORP., 200 MADISON AVENUE, NEW YORK NY 10016 |
| Zachary Coughlin |
officer: EVP, Chief Financial Officer |
285 MADISON AVENUE, NEW YORK NY 10017 |
| Stefan Larsson |
director, officer: Chief Executive Officer |
TWO FOLSOM STREET, SAN FRANCISCO CA 94105 |
| Ajay Bhalla |
director |
2000 PURCHASE STREET, PURCHASE NY 10577 |
| Sourry Knox Judith Amanda |
director |
C/O 200 MADISON AVENUE, NEW YORK NY 10016 |
| Brent Callinicos |
director |
C/O 706 MISSION STREET, SAN FRANCISCO CA 94103 |
| Edward R. Rosenfeld |
director |
C/O STEVEN MADDEN, LTD., 52-16 BARNETT AVENUE, LONG ISLAND CITY NY 11104 |
| Vincent James Marino |
director |
C/O OFFICEMAX INCORPORATED, 263 SHUMAN BLVD., NAPERVILLE IL 60563 |
| Joseph B Fuller |
director |
TWO CANAL PARK, CAMBRIDGE MA 02141 |
| George Cheeks |
director |
200 MADISON AVENUE, NEW YORK NY 10016 |
| Allison Peterson |
director |
7601 PENN AVENUE SOUTH, RICHFIELD MN 55423 |
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