What is GE HealthCare Technologies 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, GE HealthCare Technologies's Probability of Financial Distress (%) is 0.04%.
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 GE HealthCare Technologies's Probability of Financial Distress (%)
For the Health Information Services subindustry, GE HealthCare Technologies'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.
GE HealthCare Technologies's Probability of Financial Distress (%) Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, GE HealthCare Technologies's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where GE HealthCare Technologies's Probability of Financial Distress (%) falls into.
GE HealthCare Technologies 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 |
| = | -7.72 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.04% |
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).
GE HealthCare Technologies (GE HealthCare Technologies) Business Description
Traded in Other Exchanges
Address
500 West Monroe Street, Chicago, IL, USA, 60661
GE HealthCare Technologies Inc is a globally medical technology, pharmaceutical diagnostics, and digital solutions innovator company. It has four operating segments; Imaging, Ultrasound, Patient Care Solutions (PCS), and Pharmaceutical Diagnostics (PDx). It earns a majority of its revenue from the Imaging segment.
Executives
| Kevin Michael O'neill |
officer: CEO, PDx |
500 W. MONROE STREET, CHICAGO IL 60661 |
| Roland Rott |
officer: CEO, Ultrasound |
500 W. MONROE STREET, CHICAGO IL 60661 |
| James Saccaro |
officer: Chief Financial Officer |
ONE BAXTER PARKWAY, DEERFIELD IL 60015 |
| Jan Makela |
officer: CEO, Imaging |
500 W. MONROE STREET, CHICAGO IL 60661 |
| Taha Kass-hout |
officer: Chief Technology Officer |
500 W. MONROE STREET, CHICAGO IL 60661 |
| Kenneth R. Stacherski |
officer: Ch. Supply Chain & Serv. Ofc. |
500 W MONROE, CHICAGO IL 60661 |
| Culp H Lawrence Jr |
director |
GENERAL ELECTRIC COMPANY, ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111 |
| William J Stromberg |
director |
100 E. PRATT STREET, BALTIMORE MD 21202 |
| Thomas J. Westrick |
officer: CEO, Patient Care Solutions |
500 W. MONROE STREET, CHICAGO IL 60661 |
| Yang Watkin Phoebe L. |
director |
C/O DOXIMITY, INC., 500 THIRD STREET, SAN FRANCISCO CA 94107 |
| Rodney F Hochman |
director |
21919 30TH DR SE, BOTHELL WA 98021 |
| Tomislav Mihaljevic |
director |
ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111 |
| Lloyd Jr Howell |
director |
8283 GREENSBORO DRIVE, MCLEAN VA 22102 |
| Anne T Madden |
director |
C/O HONEYWELL 300 S. TRYON STREET, CHARLOTTE NC 28202 |
| Frank R Jimenez |
officer: GC & Corporate Secretary |
GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 606061 |
GE HealthCare Technologies (GE HealthCare Technologies) Headlines
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