What is Wabash National 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, Wabash National's Probability of Financial Distress (%) is 0.03%.
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 Wabash National's Probability of Financial Distress (%)
For the Farm & Heavy Construction Machinery subindustry, Wabash National'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.
Wabash National's Probability of Financial Distress (%) Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Wabash National's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Wabash National's Probability of Financial Distress (%) falls into.
Wabash National 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 |
| = | -7.96 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
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).
Wabash National (Wabash National) Business Description
Traded in Other Exchanges
Address
3900 McCarty Lane, Lafayette, IN, USA, 47905
Wabash National Corp operates as the innovation leader of connected solutions for the transportation, logistics and distribution industries. The company's mission is to enable customers to succeed with breakthrough ideas and solutions that help them move everything from the first to the final mile. It designs and manufactures a diverse range of products, including dry freight and refrigerated trailers, platform trailers, tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food-grade processing equipment.
Executives
| Larry J Magee |
director |
1000 SAGAMORE PARKWAY SOUTH, LAFAYETTE IN 47905 |
| Mary Kristin Glazner |
officer: SVP Chief HR Officer |
1000 SAGAMORE PARKWAY SOUTH, LAFAYETTE IN 47905 |
| Michael N Pettit |
officer: SVP - Group President, FMP |
1000 SAGAMORE PARKWAY SOUTH, LAFAYETTE IN 47905 |
| Dustin T Smith |
officer: SVP and Group President, CTP |
1000 SAGAMORE PARKWAY SOUTH, LAFAYETTE IN 47905 |
| Kevin J Page |
officer: SVP and Group President, DPG |
1000 SAGAMORE PARKWAY SOUTH, LAFAYETTE IN 47905 |
| Brent L Yeagy |
officer: Pres. of Commercial Trailer |
1000 SAGAMORE PARKWAY SOUTH, LAFAYETTE IN 47905 |
| Sudhanshu Shekhar Priyadarshi |
director |
6425 HALL OF FAME LANE, FRISCO TX 75034 |
| Trent Broberg |
director |
3900 MCCARTY LANE, LAFAYETTE IN 47905 |
| John E Kunz |
director |
522 N. MACEWEN DRIVE, OSPREY FL 34229 |
| John G. Boss |
director |
260 HUDSON RIVER ROAD, WATERFORD NY 12188 |
| Therese M Bassett |
director |
2211 SOUTH 47TH STREET, PHOENIX AZ 85034 |
| Taylor Stuart A Ii |
director |
|
| Andrew C Boynton |
director |
FULTON HALL 510, 140 COMMONWEALTH AVENUE, CHESTNUT HILL MA 02467 |
| Melanie Margolin |
officer: SVP and General Counsel |
1000 SAGAMORE PARKWAY SOUTH, LAFAYETTE IN 47905 |
| Richard J Giromini |
officer: Senior Vice President - COO |
|
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