What is Green Giant 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, Green Giant's Probability of Financial Distress (%) is 91.88%.
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 Green Giant's Probability of Financial Distress (%)
For the Real Estate - Development subindustry, Green Giant'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.
Green Giant's Probability of Financial Distress (%) Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Green Giant's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Green Giant's Probability of Financial Distress (%) falls into.
Green Giant 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 |
| = | 2.43 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 91.88% |
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).
Green Giant (Green Giant) Business Description
Traded in Other Exchanges
N/A
Address
6 Xinghan Road, 19th Floor, Shaanxi Province, Hanzhong, CHN, 723000
Green Giant Inc is engaged in real estate development buisness and green energy business. The Company engages in real estate development through the VIE, Guangsha, in mainland China, and is transitioning itself from its real estate development business to a new energy corporation. It is engaged in the construction and sale of residential apartments, car parks, and commercial properties. The company's real-estate properties include multi-layer apartment buildings, sub-high-rise apartment buildings, and high-rise apartment buildings. The project portfolios of the company are Yangzhou Pearl Garden Phase I and II, Nanyuan II Project, Mingzhu Garden, Oriental Pearl Garden, and Yangzhou Palace. Majority of the Company's revenue is derived from real estate sales.
Executives
| Goldenmountain Solution Inc. |
10 percent owner |
1100 ABERNATHY RD NE STE 325, ATLANTA GA 30328 |
| Gordon H Silver |
director |
C/O PUTNAM LLC, ONE POST OFFICE SQ, BOSTON MA 02109 |
| H. David Sherman |
director |
38 HOMEWOOD ROAD, NEWTON MA 02468 |
| Shenghuei Luo |
director |
6 XINGHAN ROAD 19TH FL, HANZHONG CITY, SHAANXI PROVINCE F4 72300 |
| Yuankai Wen |
director |
ROOM 907, TOWER A, HONGYUAN MANSION, NO. 4, JIU XIAN QIAO RD., BEIJING F4 100016 |
| Xiaojun Zhu |
director, 10 percent owner, officer: President and CEO |
6 XINGHAN ROAD, 19TH FLOOR, HANZHONG CITY, SHAANXI PROVINCE F4 723000 |
| Carl M Berg |
other: Former Officer, Director, 10% |
1059 EAST SKYLER DR, DRAPER UT 84020 |
| John Leo |
director, officer: Secretary |
80 WALL STREET, 5TH FLOOR, NEW YORK NY 10005 |
| Zhengquan Wang |
director, 10 percent owner, officer: CEO, CFO |
101 XINANYAO STREET, JINZHOU DISTRICT, DALIAN LIAONING PROV F4 116100 |
| Mark Stewart |
director |
PO BOX 51150, IRVINE CA 92619 |
| Kevin J Gadawski |
director |
19 TERRAZA DEL MAR, DANA POINT CA 92629 |
| Brian A Lebrecht |
10 percent owner |
610 NEWPORT CENTER DRIVE, SUITE 800, NEWPORT BEACH CA 92660 |
| Gerald A Deciccio |
director |
92 CORPORATE PARK, C-141, IRVINE CA 92606 |
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