What is Atlantic Power 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, Atlantic Power's Probability of Financial Distress (%) is 0.00%.
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 Atlantic Power's Probability of Financial Distress (%)
For the Utilities - Independent Power Producers subindustry, Atlantic Power'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.
Atlantic Power's Probability of Financial Distress (%) Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Atlantic Power's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Atlantic Power's Probability of Financial Distress (%) falls into.
Atlantic Power 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 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
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).
Atlantic Power (Atlantic Power) Business Description
Traded in Other Exchanges
N/A
Address
3 Allied Drive, Suite 155, Dedham, MA, USA, 02026
Atlantic Power Corp is an independent power producer that owns power generation assets in the United States and Canada. Its power generation projects, which are diversified by geography, fuel type, dispatch profile, and offtaker, sell electricity to utilities and other large customers predominantly under long-term power purchase agreements, which seek to minimize exposure to changes in commodity prices. It has four reportable segments: Solid Fuel, Natural Gas, Hydroelectric and Corporate. A vast majority of the revenues are generated from the natural gas segment.
Executives
| Kevin Howell |
director |
2220 MONUMENT AVENUE, RICHMOND VA 23220 |
| R Foster Duncan |
director |
139 E FOURTH ST, CINCINNATI OH 45202 |
| Gilbert Samuel Palter |
director |
37 MISTY CRESCENT TORONTO A6 MSB IT2 |
| Danielle S Mottor |
director |
870 WASHINGTON STREET HOLLISTON MA 01746 |
| Terrence Ronan |
officer: Chief Financial Officer |
ONE FEDERAL STREET 30TH FLOOR BOSTON MA 02110 |
| Joseph Cofelice |
officer: EVP Commercial Development |
|
| Moore James J Jr |
director, officer: Chief Executive Officer |
|
| Jeffrey S Levy |
officer: SVP, General Counsel |
769 WEBSTER STREET NEEDHAM MA 02492 |
| Irving Russell Gerstein |
director |
200 CLARENDON STREET BOSTON MA 02116 |
| Philip Daniel Rorabaugh |
officer: SVP, Asset Management |
27 ASPEN AVE AUBURNDALE MA 02466 |
| Holli C. Ladhani |
director |
2800 POST OAK BLVD., SUITE 4500, HOUSTON TX 77056 |
| Teresa Ressel |
director |
ON SEMICONDUCTOR C/O V. PECORA (MD A700), 5005 EAST MCDOWELL ROAD, PHOENIX AZ 85008 |
| John Alexander Mcneil |
director |
200 CLARENDON STREET BOSTON MA 02116 |
| Kenneth Michael Hartwick |
director |
200 CLARENDON STREET, BOSTON MA 02116 |
| Paul Howard Rapisarda |
officer: EVP Commercial |
151 SE 15TH ROAD, APT 1802, MIAMI FL 33129 |
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