What is Tel Instrument Electronics 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, Tel Instrument Electronics's Probability of Financial Distress (%) is 0.07%.
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 Tel Instrument Electronics's Probability of Financial Distress (%)
For the Aerospace & Defense subindustry, Tel Instrument Electronics'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.
Tel Instrument Electronics's Probability of Financial Distress (%) Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Tel Instrument Electronics's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Tel Instrument Electronics's Probability of Financial Distress (%) falls into.
Tel Instrument Electronics 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 |
| = | -7.33 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.07% |
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).
Tel Instrument Electronics (Tel Instrument Electronics) Business Description
Traded in Other Exchanges
N/A
Address
One Branca Road, East Rutherford, NJ, USA, 07073
Tel Instrument Electronics Corp is a designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government, military aerospace, and defense markets. It designs, manufactures and sells instruments to test and measure, and calibrates and repairs airborne navigation and communication equipment. The company's reportable segments are Avionics government and Avionics commercial. The avionics government segment consists of the design, manufacture, and sale of test equipment to the U.S. and foreign governments and militaries. The Avionics commercial segment consists of design, manufacture, and sale of test equipment to domestic and foreign airlines. It generates a majority of its revenue from the Avionics Government segment.
Executives
| Dowling Vincent J. Jr |
10 percent owner |
54 LEDYARD, WEST HARTFORD CT 06117 |
| Robert A Rice |
director |
728 GARDEN ST, CARLSTADT NJ 07072 |
| Joseph P Macaluso |
10 percent owner, officer: Principal Accounting Officer |
|
| Stephen A Fletcher |
director, 10 percent owner |
ONE BRANCA RD, EAST RUTHERFORD NJ 07073-2121 |
| Sadie Elizabeth Fletcher |
10 percent owner |
ONE BRANCA RD, EAST RUTHERFORD NJ 07073-2121 |
| Michael Wolfgang Schirmer |
officer: Chief Operating Officer |
ONE BRANCA ROAD, EAST RUTHERFORD NJ 07073 |
| Jeff C Ohara |
director |
ONE BRANCA RD, EAST RUTHERFORD NJ 07073 |
| George J Leon |
director, 10 percent owner |
|
| Chris H Allen |
officer: VP of Operations |
ONE BRANCA RD, EAST RUTHERFORD NJ 07073 |
| Harold K Fletcher |
director, 10 percent owner, officer: CEO |
|
| Marc A Mastrangelo |
officer: Vice President-Manufacturing |
728 GARDEN ST, CARLSTADT NJ 07072 |
| Adam Rachlin |
officer: Vice President |
728 GARDEN ST, CARLSTADT NJ 07072 |
| Charles R Palanzo |
officer: COO |
728 GARDEN STREET, CARLSTADT NJ 07072 |
| Robert H Walker |
director |
C/O ROBOTIC VISION SYSTEMS INC, 486 AMHERST STREET, NASHUA NH 03063 |
| Robert J Melnick |
director, officer: Vice President |
|
Tel Instrument Electronics (Tel Instrument Electronics) Headlines
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