What is Chicago Bridge & Iron Co NV 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, Chicago Bridge & Iron Co NV'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 Chicago Bridge & Iron Co NV's Probability of Financial Distress (%)
For the Engineering & Construction subindustry, Chicago Bridge & Iron Co NV'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.
Chicago Bridge & Iron Co NV's Probability of Financial Distress (%) Distribution in the Construction Industry
For the Construction industry and Industrials sector, Chicago Bridge & Iron Co NV's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Chicago Bridge & Iron Co NV's Probability of Financial Distress (%) falls into.
Chicago Bridge & Iron Co NV 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).
Chicago Bridge & Iron Co NV (Chicago Bridge & Iron Co NV) Business Description
Traded in Other Exchanges
N/A
Address
Founded in 1889, Chicago Bridge & Iron provides a wide range of services, including conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management, and environmental services, to customers in the global energy infrastructure market. It also provides diversified government services. It generated 2017 adjusted revenue and adjusted EBIT of $5.8 billion and a loss of $180 million, respectively. CB&I employs 34,000 at active projects in more than 70 countries.
Executives
| James H Miller |
director |
C/O CROWN HOLDINGS, INC., 770 TOWNSHIP LINE ROAD, YARDLEY PA 19067 |
| W Craig Kissel |
director |
|
| Alexander Forbes I J |
director |
10560 DR. MARTIN LUTHER KING JR. ST N, ST. PETERSBURG FL 33716-3718 |
| Deborah M Fretz |
director |
1801 MARKET STREET, PHILADELPHIA PA 19103 |
| L Richard Flury |
director |
2000 W SAM HOUSTON PKWY S, SUITE 2000, HOUSTON TX 77042 |
| Richard W. Heo |
officer: Executive Vice President |
2103 RESEARCH FOREST DRIVE, THE WOODLANDS TX 77380 |
| Westley S. Stockton |
officer: VP, Controller, CAO |
2103 RESEARCH FOREST DRIVE, THE WOODLANDS TX 77380 |
| James R Bolch |
director |
C/O INGERSOLL-RAND COMPANY, 155 CHESTNUT RIDGE ROAD, MONTVALE NJ 07645 |
| Marsha C Williams |
director |
EQUITY OFFICE PROPERTIES, CHICAGO IL 60606 |
| Michael S Taff |
officer: Executive Vice President & CFO |
777 N ELDRIDGE PARKWAY, HOUSTON TX 77079 |
| Larry D Mcvay |
director |
2000 W SAM HOUSTON PKWY S, SUITE 2000, HOUSTON TX 77042 |
| Philip K Asherman |
director, officer: President and CEO |
1450 LAKE ROBBINS DR.,, SUITE 400, THE WOODLANDS TX 77380 |
| Chandler Richard E Jr |
officer: EVP and Chief Legal Officer |
1800 HUGHES LANDING BLVD, SUITE 250, THE WOODLANDS TX 77380 |
| Sheila B Feldman |
officer: Executive Vice President |
|
| Ronald A Ballschmiede |
officer: Executive Vice President & CFO |
1800 HUGHES LANDING BLVD, SUITE 250, THE WOODLANDS TX 77380 |
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