What is Trio-Tech International 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, Trio-Tech International's Probability of Financial Distress (%) is 0.01%.
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 Trio-Tech International's Probability of Financial Distress (%)
For the Semiconductor Equipment & Materials subindustry, Trio-Tech International'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.
Trio-Tech International's Probability of Financial Distress (%) Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Trio-Tech International's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Trio-Tech International's Probability of Financial Distress (%) falls into.
Trio-Tech International 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 |
| = | -8.88 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.01% |
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).
Trio-Tech International (Trio-Tech International) Business Description
Traded in Other Exchanges
N/A
Address
Unit 03-09, Block 1008, Toa Payoh North, Singapore, SGP, 318996
Trio-Tech International is a provider of third-party semiconductor testing and burn-in services through its laboratories in Southeast Asia. The company operates in four segments namely Manufacturing, Testing services, Distribution, and Real Estate. Its Manufacturing segment manufactures both front-end and back-end semiconductor test equipment and related peripherals. The Testing segment renders services to the manufacturer and purchaser of semiconductors and other entities. Its Distribution segment is involved in the distribution of its products. The company's Real Estate segment consists of investment in real estate. Its geographical area of operations includes the United States, Singapore, Malaysia, Thailand, and China.
Executives
| Jason T Adelman |
director |
900 PARK AVENUE, APARTMENT 15A, NEW YORK NY 10021 |
| Anitha Srinivasan |
officer: CFO |
103 HILLVIEW RISE, #09-18, SINGAPORE U0 667982 |
| Ting Victor Hock Ming |
director |
770 BEDOK RESERVOIR ROAD, #01-03, SINGAPORE U0 479250 |
| S W Yong |
director, 10 percent owner, officer: Chief Executive Officer |
7 PANDAN VALLEY, 16-502 POINCIANA TOWER, SINGAPORE U0 597631 |
| Richard M Horowitz |
director |
9301 WILSHIRE BOULEVARD #206, BEVERLY HILLS CA 90210 |
| Kuan Soon Siew |
officer: Vice President |
126 BUKIT MERAH VIEW, #18-374 U0 151126 |
| Hwee Poh Lim |
officer: Vice President - Testing |
39 WARINGIN WALK, SINGAPORE U0 416292 |
| A Charles Wilson |
director |
623 NORTH PALM DRIVE, BEVERLY HILLS CA 90210 |
| Daniel Zeff |
10 percent owner |
400 S. MCCADDEN PL., LOS ANGELES CA 90020 |
| Spectrum Galaxy Fund Ltd. |
10 percent owner |
50 CALIFORNIA STREET, SUITE 1500, SAN FRANCISCO CA 94111 |
| Zeff Capital Partners I, L.p. |
10 percent owner |
C/O ZEFF HOLDING COMPANY, LLC, 50 CALIFORNIA STREET, SAN FRANCISCO CA 94111 |
| Zeff Holding Company, Llc |
10 percent owner |
400 S. MCCADDEN PL., LOS ANGELES CA 90020 |
Trio-Tech International (Trio-Tech International) Headlines
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