CrossAmerica Partners LP (CrossAmerica Partners LP) Probability of Financial Distress (%) : 0.19% (As of May. 26, 2024)

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What is CrossAmerica Partners LP 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, CrossAmerica Partners LP's Probability of Financial Distress (%) is 0.19%.

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 CrossAmerica Partners LP's Probability of Financial Distress (%)

For the Oil & Gas Refining & Marketing subindustry, CrossAmerica Partners LP'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.

CrossAmerica Partners LP's Probability of Financial Distress (%) Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, CrossAmerica Partners LP's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where CrossAmerica Partners LP's Probability of Financial Distress (%) falls into.

CrossAmerica Partners LP 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

-6.27

The Probability of Financial Distress (%) (PFD) was then obtianed by:

PFD	=	1	/	(1 + e^(-LPFD))	*	100%
	=	0.19%

The eight explanatory variables are:

1. NIMTAAVG = Net Income to Market Total Assets

NIMTAAVG	=	Net Income	/	Market Total Assets
	=	Net Income	/	(Market Cap + Total Liabilities)

*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

TLMTA

Total Liabilities

Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For non-financial companies, CASHMTA is measured as:

CASHMTA

Cash, Cash Equivalents, Marketable Securities

Market Total Assets

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

MB	=	Market Cap	/	Adjusted Book Equity
	=	Market Cap	/	(Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

CrossAmerica Partners LP (NYSE:CAPL) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.

CrossAmerica Partners LP Probability of Financial Distress (%) Related Terms

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CrossAmerica Partners LP (CrossAmerica Partners LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » CrossAmerica Partners LP (NYSE:CAPL) » Definitions » Probability of Financial Distress (%)

Comparable Companies

Traded in Other Exchanges

N/A

Address

645 Hamilton Street, Suite 400, Allentown, PA, USA, 18101

Website

https://www.crossamericapartners.com

CrossAmerica Partners LP is a US-based limited partnership which is engaged in the wholesale distribution of motor fuel and the ownership and leasing of real estate used in the retail distribution of motor fuel. The company operates through two business segments namely Wholesale and Retail. The Wholesale segment is a key revenue driver, includes the wholesale distribution of motor fuel to lessee dealers, independent dealers, commission agents, DMS, Circle K and through company operated retail sites. The Retail segment includes the sale of convenience merchandise items, the retail sale of motor fuel at company-operated retail sites and the retail sale of motor fuel at retail sites operated by commission agents.

Executives

Topper Joseph V. Jr.	director, 10 percent owner	702 WEST HAMILTON STREET, SUITE 203, ALLENTOWN PA 18101
Robert Brecker	officer: Executive Vice Pres Operations	107 SACRAMENTO DRIVE, QUAKERTOWN PA 18951
Stephen J Lattig	officer: Senior Vice President Retail	6109 COTTONWOOD LANE, BLACKSHEAR GA 31516
Thomas E Kelso	director	14921 OLD YORK ROAD, PHOENIX MD 21131
Matthew Evan Naylor	officer: Senior Vice President Retail	200 HOLLEDER PARKWAY, ROCHESTER NY 14615
Mickey Kim	director	500 S. COUNTRY CLUB ROAD, COLUMBUS IN 47201
2008 Irrevocable Agreement Of Trust Of John B Reilly Jr	10 percent owner	1577 SAUCON VALLEY ROAD, BETHLEHEM PA 18105
Dunne Manning Cap Holdings I Llc	10 percent owner	645 HAMILTON STREET, SUITE 500, ALLENTOWN PA 18101
Reilly John B. Iii	director	ONE SAUCON VIEW DRIVE, BETHLEHEM PA 18015
Eric M Javidi	officer: Chief Financial Officer	500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Maura Topper	director	1762 ARDEN LANE, BETHLEHEM PA 18015
Keenan D Lynch	director, officer: Corporate Secretary	645 HAMILTON STREET, SUITE 500, ALLENTOWN PA 18101
Patricia Dunne Topper Trust	10 percent owner	645 HAMILTON STREET, SUITE 500, ALLENTOWN PA 18101
Dm Partners Management Co. Llc	10 percent owner	645 HAMILTON STREET, SUITE 500, ALLENTOWN PA 18101
Dunne Manning Partners Llc	10 percent owner	645 HAMILTON STREET, SUITE 500, ALLENTOWN PA 18101