What is Scott's Liquid Gold 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, Scott's Liquid Gold'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 Scott's Liquid Gold's Probability of Financial Distress (%)
For the Household & Personal Products subindustry, Scott's Liquid Gold'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.
Scott's Liquid Gold's Probability of Financial Distress (%) Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Scott's Liquid Gold's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Scott's Liquid Gold's Probability of Financial Distress (%) falls into.
Scott's Liquid Gold 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 |
| = | -7.86 |
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).
Scott's Liquid Gold (Scott's Liquid Gold) Business Description
Traded in Other Exchanges
N/A
Address
8400 E. Crescent Parkway, Suite 450, Greenwood Village, CO, USA, 80111
Scott's Liquid Gold Inc develop, market, and sell high-quality, high-value household and personal care products. Its business is divided into two operating segments: household products and health and beauty care products. Its family of brands includes Scott's Liquid Gold, Alpha Skin Care, Prell, Denorex, Kids N Pets, 7th Heaven by Montagne Jeunesse, and Batiste Dry Shampoo. The company generates a vast majority of its revenues from the Household Products segment.
Executives
| John Mcannar |
director |
111 SPRINGHALL DRIVE, GOOSE CREEK SC 29445 |
| Maran Partners Fund, Lp |
10 percent owner |
150 FILLMORE STREET, SUITE 150, DENVER CO 80206 |
| Mark E Goldstein |
director, 10 percent owner, officer: COB/President/CEO |
4880 HAVANA ST, DENVER CO 80239 |
| David M Arndt |
officer: Chief Financial Officer |
3184 BARBWIRE WAY, CASTLE ROCK CT 80108 |
| Tisha Pedrazzini |
director |
15276 W. ELLSWORTH PL, GOLDEN CO 80401 |
| R. Rimmy Malhotra |
director |
C/O COMMAND CENTER, INC., 3609 S WADSWORTH BLVD., SUITE 250, LAKEWOOD CO 80235 |
| Maran Capital Management, Llc |
10 percent owner |
1409 COLUMBINE STREET, DENVER CO 80206 |
| Maran Spv Gp, Llc |
10 percent owner |
1409 COLUMBINE STREET, DENVER CO 80206 |
| Daniel J Roller |
10 percent owner |
1409 COLUMBINE STREET, DENVER CO 80206 |
| Maran Partners Gp, Llc |
10 percent owner |
1409 COLUMBINE STREET, DENVER CO 80206 |
| Maran Spv, Lp |
10 percent owner |
1409 COLUMBINE STREET, DENVER CO 80206 |
| Iszo Capital Lp |
10 percent owner |
590 MADISON AVENUE, 21ST FLOOR, NEW YORK NY 10022 |
| Andrew Summers |
director |
601 JEFFERSON STREET, HOUSTON TX 77002 |
| Kevin A. Paprzycki |
officer: Chief Financial Officer |
C/O SOLID POWER, INC., 486 S PIERCE AVE., SUITE E, LOUISVILLE CO 80027 |
| Brian L. Sheehy |
10 percent owner |
415 MADISON AVENUE, 14TH FLOOR, NEW YORK NY 10017 |
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