What is Worksport 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, Worksport's Probability of Financial Distress (%) is 6.04%.
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 Worksport's Probability of Financial Distress (%)
For the Auto Parts subindustry, Worksport'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.
Worksport's Probability of Financial Distress (%) Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Worksport's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Worksport's Probability of Financial Distress (%) falls into.
Worksport 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 |
| = | -2.74 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 6.04% |
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).
Worksport (Worksport) Business Description
Traded in Other Exchanges
N/A
Address
55G East Beaver Creek Road, Richmond Hill, ON, CAN, L4B 1E5
Worksport Ltd through its subsidiaries, designs, develops, manufactures, and owns the IP on a variety of tonneau covers, solar integrations, and NP (Non-Parasitic), Hydrogen-based true green energy solutions for the sustainable, clean energy, and automotive industries. The company's product includes soft vinyl tonneau covers and hard aluminum tonneau covers.
Executives
| Ned L Siegel |
director |
600 WILSHIRE BOULEVARD, LOS ANGELES CA 90017 |
| William J Caragol |
director |
1690 SOUTH CONGRESS AVENUE, SUITE 200, DELRAY BEACH FL 33445 |
| Craig William Loverock |
director |
48 UNION AVE, PORT PERRY A6 L9L 1G2 |
| Michael D Johnston |
officer: Chief Financial Officer |
340 RICHMOND STREET WEST, TORONTO Z4 MSV 1X2 |
| Lorenzo Rossi |
director, officer: Treasurer |
1895 CLEMENTS ROAD, SUITE 155, PICKERING A6 M1P 4Y9 |
| Steven Raivio |
director, officer: COO, Secretary |
8820 JANE STREET, VAUGHAN A6 L4K 2M9 |
| Steven F. Rossi |
10 percent owner |
1895 CLEMENTS ROAD, PICKERING A6 M1P 4Y9 |
| Truxmart Ltd. |
10 percent owner |
1895 CLEMENTS ROAD, PICKERING A6 MIP 4Y9 |
| Mathis Family Partners Ltd. |
10 percent owner |
2560 W. MAIN STREET, SUITE 200, LITTLETON CO 80120 |
| Lazzeri Family Trust, Robert Lazzeri, Trustee |
10 percent owner |
5046 CHRISTENSEN DRIVE, LITTLETON CO 80123 |
| Earnco M.p.p.p. |
10 percent owner |
2560 W MAIN ST, STE 200, LITTLETON CO 80120 |
| Lazzeri Equity Partners 401k Plan |
10 percent owner |
2560 W MAIN STREET, SUITE 200, LITTLETON CO 80120 |
| A. J. Boisdrenghien |
director, 10 percent owner, officer: President |
5910 SOUTH UNIVERSITY BOULEVARD, C-18, UNIT 165, LITTLETON CO 80121-2800 |
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