AGL Resources (AGL Resources) Probability of Financial Distress (%) : 0.00% (As of May. 05, 2024)

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What is AGL Resources 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, AGL Resources'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 AGL Resources's Probability of Financial Distress (%)

For the Utilities - Regulated Gas subindustry, AGL Resources'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.

AGL Resources's Probability of Financial Distress (%) Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, AGL Resources's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where AGL Resources's Probability of Financial Distress (%) falls into.

AGL Resources 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

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).

AGL Resources (NYSE:GAS) 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.

AGL Resources Probability of Financial Distress (%) Related Terms

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AGL Resources (AGL Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » AGL Resources Inc (NYSE:GAS) » Definitions » Probability of Financial Distress (%)

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.aglresources.com

AGL Resources Inc was incorporated on November 27, 1995 under the laws of the State of Georgia. It is an energy services holding company. The Company is engaged in the distribution of natural gas in seven states; Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee and Maryland through its seven natural gas distribution utilities. The Company's business segments are Distribution Operations, Retail Operations, Wholesale Services and Midstream Operations. The distribution operations segment includes seven natural gas local distribution utilities with a focus of providing safe and reliable delivery of natural gas. The retail operations segment serves natural gas commodity customers and service contracts. The wholesale services segment is engaged in asset management and optimization, storage, transportation, producer and peaking services and wholesale marketing of natural gas across the U.S. and Canada. Wholesale services utilizes a portfolio of natural gas storage assets, contracted supply from all of the main producing regions, as well as contracted storage and transportation capacity to provide these services to its customers. The midstream operations segment includes a number of businesses that are related and complementary to its primary business. The Company competes with electric utilities and fuel oil and propane providers serving the residential, commercial and industrial markets and natural gas facilities. The Company's business is subject to substantial regulation by federal, state and local regulatory authorities.

Executives

Bettina M Whyte	director	9 W 57TH ST 34TH FLR, NEW YORK NY 10019
Dennis M Love	director	TEN PEACHTREE PLACE, DEPT. 1466, ATLANTA GA 30309
Dean R Ohare	director	15 MOUNTAIN VIEW ROAD, WARREN NJ 07059
Norman Bobins	director	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Brenda J Gaines	director	1445 ROSS AVENUE, SUITE 1400, DALLAS TX 75202
James A Rubright	director	3435 WOODHAVEN RD NW, ATLANTA GA 30305
Sandra N Bane	director
Henry C Wolf	director	NORFOLK SOUTHERN CORP, THREE COMMERCIAL PLACE, NORFOLK VA 23510-9219
Andrew W Evans	director, officer: President & CEO	TEN PEACHTREE PLACE, LOC. 1466, ATLANTA GA 30309
Charles R Crisp	director	1301 MCKINNEY STE 700, HOUSTON TX 77010
Bell Thomas D Jr	director
Armando J Olivera	director	C/O FLUOR CORPORATION, 6700 LAS COLINAS BLVD, IRVING TX 75039
Arthur E Johnson	director	IKON OFFICE SOLUTIONS INC, 70 VALLEY STREAM PARKWAY, MALVERN PA 19355
John Rau	director	MIAMI CORPORATION, 410 N. MICHIGAN AVENUE, ROOM 590, CHICAGO IL 60611
Somerhalder John W Ii	director, officer: Chairman and CEO	76 SOUTH MAIN STREET, AKRON OH 44308