What is El Paso Electric Co 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, El Paso Electric Co'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 El Paso Electric Co's Probability of Financial Distress (%)
For the Utilities - Regulated Electric subindustry, El Paso Electric Co'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.
El Paso Electric Co's Probability of Financial Distress (%) Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, El Paso Electric Co's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where El Paso Electric Co's Probability of Financial Distress (%) falls into.
El Paso Electric Co 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).
El Paso Electric Co (El Paso Electric Co) Business Description
Traded in Other Exchanges
N/A
Address
100 North Stanton, Stanton Tower, El Paso, TX, USA, 79901
El Paso Electric Co is a Texas-based public utility company engaged in the generation, transmission, and distribution of electricity in the Southwestern U.S. The company principally serves retail customers in the El Paso, Texas and Las Cruces, New Mexico markets through its portfolio of nuclear, natural gas, coal, solar, and wind power plants. The vast majority of the total power produced by El Paso Electric is derived from its nuclear and natural gas facilities. The company generates most of its revenue from the production and sale of energy. Distribution service fees also represent a significant income stream. El Paso Electric primarily serves residential and small industrial customers, but also participates in wholesale transactions with local military installations and universities.
Executives
| James W Cicconi |
director |
208 S. AKARD ST., DALLAS TX 75202 |
| Charles Yamarone |
director |
123 W MILLS, EL PASO TX 79901 |
| Eric B Siegel |
director |
123 W MILLS, EL PASO TX 79901 |
| Stephen Wertheimer |
director |
123 W MILLS, EL PASO TX 79901 |
| Paul M Barbas |
director |
C/O DPL INC., 1065 WOODMAN DRIVE, DAYTON OH 45432 |
| Catherine A Allen |
director |
5 SAN SEBASTIAN ROAD, SANTA FE NM 87505 |
| William Stiller |
officer: SVP & Chief HRO |
1601 W. LBJ FREEWAY, DALLAS TX 75234 |
| Woody L Hunt |
director |
4401 NORTH MESA, EL PASO TX 79902 |
| Shockley Thomas V Iii |
director |
602 CIMARRON HILLS TRAIL WEST, GEORGETOWN TX 78628 |
| Michael K Parks |
director |
123 W MILLS, EL PASO TX 79901 |
| Steven P Busser |
officer: VP-TREASURER |
C/O EVERGY, INC., 1200 MAIN STREET, KANSAS CITY MO 64105 |
| Kenneth Heitz |
director |
123 W MILLS, EL PASO TX 79901 |
| Edwards George W Jr |
director |
123 W MILLS, EL PASO TX 79901 |
| Redd Ershel C Jr |
officer: President and CEO |
C/O EL PASO ELECTRIC COMPANY, 100 N. STANTON, EL PASO TX 79901 |
| Terry D Bassham |
officer: Exec VP & Chief Fin & Admin |
COMMERCE BANK, PO BOX 419248, KANSAS CITY MO 64141-6248 |
El Paso Electric Co (El Paso Electric Co) Headlines
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