What is Cintas 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, Cintas's Probability of Financial Distress (%) is 0.02%.
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 Cintas's Probability of Financial Distress (%)
For the Specialty Business Services subindustry, Cintas'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.
Cintas's Probability of Financial Distress (%) Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Cintas's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Cintas's Probability of Financial Distress (%) falls into.
Cintas 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 |
| = | -8.47 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
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).
Cintas (Cintas) Business Description
Traded in Other Exchanges
Address
6800 Cintas Boulevard, P.O. Box 625737, Cincinnati, OH, USA, 45262-5737
Cintas is positioned as a one-stop shop that rents/sells uniforms and ancillary products and services, such as mops, first aid kits, and fire inspections. In its core uniform and facility services unit (a majority of sales), Cintas provides uniform rental programs for items including office attire, custom-tailored apparel, flame-resistant clothing, lab coats, and other profession-specific clothing. Facilities products generally include the rental and sale of entrance mats, mops, shop towels, hand sanitizers, and restroom supplies. Cintas' remaining businesses include first aid and safety services, fire protection services, and uniform direct sales.
Executives
| J. Michael Hansen |
officer: VP & CFO |
6800 CINTAS BOULEVARD, CINCINNATI OH 45262-5737 |
| Ronald W Tysoe |
director |
C/O MACY'S, INC., 7 WEST SEVENTH STREET, CINCINNATI OH 45202 |
| Robert E. Coletti |
director, officer: Assistant Secretary |
P.O. BOX 625737, 6800 CINTAS BLVD., CINCINNATI OH 45262 |
| Melanie W. Barstad |
director |
P.O. BOX 625737, MASON OH 45040 |
| David Brock Denton |
officer: Sr VP, Secretary & Gen Counsel |
P.O. BOX 625737, CINCINNATI OH 45262 |
| John F Barrett |
director |
|
| Michael Lawrence Thompson |
officer: Executive Vice President & CAO |
6800 CINTAS BOULEVARD, P.O. BOX 625737, CINCINNATI OH 45262 |
| Todd M. Schneider |
director, officer: CEO and Director |
P.O. BOX 625737, 6800 CINTAS BOULEVARD, CINCINNATI OH 45262 |
| Joseph Scaminace |
director |
C/O THE SHERWIN WILLIAMS CO, 101 PROSPECT AVE N W, CLEVELAND OH 44115 |
| Gerald S Adolph |
director |
101 PARK AVENUE, ROOM 2005, NEW YORK NY 10178 |
| Jim Rozakis |
officer: Executive Vice President & COO |
6800 CINTAS BLVD, CINCINNATI OH 45262 |
| Martin Mucci |
director |
911 PANORAMA TRAIL S, ROCHESTER NY 14625 |
| Thomas E Frooman |
officer: VP, Secretary & Gen. Counsel |
|
| James J Johnson |
director |
C/O THE PROCTER & GAMBLE COMPANY,, ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202 |
| James Phillip Holloman |
officer: President and COO |
P.O. BOX 625737, 6800 CINTAS BOULEVARD, CINCINNATI OH 45262 |
Cintas (Cintas) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CTAS has been successfully added to your