What is John Wiley & Sons 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, John Wiley & Sons's Probability of Financial Distress (%) is 0.08%.
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 John Wiley & Sons's Probability of Financial Distress (%)
For the Publishing subindustry, John Wiley & Sons'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.
John Wiley & Sons's Probability of Financial Distress (%) Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, John Wiley & Sons's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where John Wiley & Sons's Probability of Financial Distress (%) falls into.
John Wiley & Sons 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 |
| = | -7.16 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.08% |
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).
John Wiley & Sons (John Wiley & Sons) Business Description
Traded in Other Exchanges
Address
111 River Street, Hoboken, NJ, USA, 07030
John Wiley & Sons Inc is one of the foremost global providers of academic journals, books, pre- and post-hire assessments and training, test preparation materials, and online education program management solutions. Wiley derived more than 85% of its total revenue from digital products and tech-enabled services, The company has reorganized our Education lines of business into two new customer-centric segments. The Academic segment addresses the university customer group and includes Academic Publishing and University Services. The Talent segment addresses the corporate customer group and is focused on delivering training, sourcing, and upskilling solutions.
Executives
| Deirdre P. Silver |
officer: EVP, General Counsel |
C/O 111 RIVER STREET, HOBOKEN NJ 07030 |
| Christopher Caridi |
officer: SVP, Global Corp Controller |
C/O 111 RIVER STREET, HOBOKEN NJ 07030 |
| Todd Zipper |
officer: EVP & GM, Talent |
C/O 111 RIVER STREET, HOBOKEN NJ 07030 |
| Brian A. Napack |
director, officer: President & CEO |
C/O JOHN WILEY & SONS, INC., 111 RIVER STREET, HOBOKEN NJ 07030 |
| Kevin Monaco |
officer: SVP, Treasurer & Tax |
2 PARK AVENUE, NEW YORK NY 10016 |
| Matthew Leavy |
officer: EVP & GM, APL |
C/O 111 RIVER STREET, HOBOKEN NJ 07030 |
| Aref Matin |
officer: EVP, Chief Technology Officer |
C/O, 111 RIVER STREET, HOBOKEN NJ 07030 |
| Danielle Mcmahan |
officer: EVP, Chief People and Bus Ops |
C/O 111 RIVER STREET, HOBOKEN NJ 07030 |
| Tassell Christina Van |
officer: EVP, Chief Financial Officer |
C/O 111 RIVER STREET, HOBOKEN NJ 07030 |
| Inder M Singh |
director |
C/O UNISYS CORPORATION, 801 LAKEVIEW DRIVE, SUITE 100, BLUE BELL PA 19422 |
| George Bell |
director |
117 KENDRICK STREET, STE 200, NEEDHAM MA 02494 |
| David C Dobson |
director |
C/O 111 RIVER ST., HOBOKEN NJ 07030 |
| Mari Jean Baker |
director |
125 SHAWNEE PASS, PORTOLA VALLEY CA 94028 |
| Laurie A Leshin |
director |
111 RIVER STREET, HOBOKEN NJ 07030 |
| Beth A Birnbaum |
director |
C/O 111 RIVER STREET, HOBOKEN NJ 07030 |
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