What is Steelcase 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, Steelcase's Probability of Financial Distress (%) is 0.03%.
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 Steelcase's Probability of Financial Distress (%)
For the Business Equipment & Supplies subindustry, Steelcase'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.
Steelcase's Probability of Financial Distress (%) Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Steelcase's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Steelcase's Probability of Financial Distress (%) falls into.
Steelcase 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 |
| = | -8.01 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
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).
Steelcase (Steelcase) Business Description
Traded in Other Exchanges
Address
901 44th Street SE, Grand Rapids, MI, USA, 49508
Steelcase Inc is a furniture company primarily based in the United States and has operations in Europe, the Middle East, and Africa. Steelcase markets its products primarily through a network of independent and company-owned dealers. The company operates through the Americas segment, the EMEA segment and the Other category. The Americas segment offers architecture, furniture and technology products is marketed to corporate, government, healthcare, education and retail customers, EMEA segment provides furniture systems, storage and seating solutions. Majority of revenue is generated from Americas segment.
Executives
| Nicole Cherie Mcgrath |
officer: VP, Corp Controller and CAO |
901 44TH STREET SE, GRAND RAPIDS MI 49508 |
| Robert G Krestakos |
officer: VP, Global Operations |
901 44TH STREET SE, GRAND RAPIDS MI 49508 |
| David C Sylvester |
officer: Senior Vice President, CFO |
901 44TH STREET SE, GRAND RAPIDS MI 49508 |
| Lizbeth S O'shaughnessy |
officer: Senior VP, CLO and Secretary |
901 44TH STREET SE, GRAND RAPIDS MI 49508 |
| Wege Peter M Ii |
director |
901 44TH ST SE, GRAND RAPIDS MI 49508 |
| Sanjay Gupta |
director |
2775 SANDERS ROAD, NORTHBROOK IL 60062 |
| Sara E Armbruster |
officer: VP, WS Futures & Corp Strategy |
901 44TH STREET SE, GRAND RAPIDS MI 49508 |
| Jennifer C Niemann |
director |
901 44TH STREET SE, GRAND RAPIDS MI 49508 |
| Steven Douglas Miller |
officer: VP, Chief Technology Officer |
901 44TH STREET SE, GRAND RAPIDS MI 49508 |
| Guillaume M Alvarez |
officer: Senior VP, EMEA |
901 44TH STREET SE, GRAND RAPIDS MI 49508 |
| Kate P Wolters |
director |
901 44TH ST, GRAND RAPIDS MI 49508 |
| Robin L Zondervan |
officer: Corporate Controller and CAO |
901 44TH STREET SE, GRAND RAPIDS MI 49508 |
| Eddy F Schmitt |
officer: Senior VP, Americas |
901 44TH STREET SE, GRAND RAPIDS MI 49508 |
| Linda K Williams |
director |
901 44TH STREET SE, GRAND RAPIDS MI 49508 |
| Donna K Flynn |
officer: VP, Global Talent Management |
901 44TH STREET SE, GRAND RAPIDS MI 49508 |
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