What is Keurig Green Mountain 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, Keurig Green Mountain'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 Keurig Green Mountain's Probability of Financial Distress (%)
For the Packaged Foods subindustry, Keurig Green Mountain'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.
Keurig Green Mountain's Probability of Financial Distress (%) Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Keurig Green Mountain's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Keurig Green Mountain's Probability of Financial Distress (%) falls into.
Keurig Green Mountain 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).
Keurig Green Mountain (Keurig Green Mountain) Business Description
Traded in Other Exchanges
N/A
Address
Keurig Green Mountain Inc is a Delaware Corporation formed in July 1993. The Company is engaged in the coffee and coffeemaker businesses in the United States and Canada. It sells Keurig Single Cup brewers and roast high-quality Arabica bean coffees including single-origin, Fair Trade Certified, certified organic, flavored, limited edition and proprietary blends offered in K-Cup and Vue packs for use with its Keurig Single Cup brewers. The Company also offers traditional whole bean and ground coffee in other package types including bags, fractional packages and cans. In addition, it produces and sells other specialty beverages in portion packs including hot apple cider, hot and iced teas, iced coffees, iced fruit brews, hot cocoa and other dairy-based beverages. The Company manages its operations through three business segments, the Specialty Coffee business unit (SCBU), the Keurig business unit (KBU) and the Canadian business unit (CBU). Due to this combination, the results of U.S. operations, formerly reported in the SCBU and KBU segments, are reported in the Domestic segment and the results of Canadian operations are in the "Canada" segment. The Domestic segment sells single cup brewers and accessories, and sources, produces and sells coffee, hot cocoa, teas and other beverages in portion packs and coffee in more traditional packaging including bags and fractional packs to retailers including supermarkets, department stores, mass merchandisers, club stores, and convenience stores; to restaurants, hospitality accounts, office coffee distributors, and partner brand owners; and to consumers through Company websites. The Canada segment sells single cup brewers, accessories, and sources, produces and sells coffee, teas and other beverages in portion packs and coffee in more traditional packaging including bags, cans and fractional packs under a variety of brands to retailers including supermarkets, department stores, mass merchandisers, club stores, through office coffee services to offices, convenience stores, restaurants, hospitality accounts, and to consumers through its website. The Company's competitors in the coffee marketplace include large national and international companies and numerous local and regional companies.
Executives
| Coca Cola Co |
10 percent owner |
ONE COCA COLA PLAZA, ATLANTA GA 30313 |
| John D Hayes |
director |
AMERICAN EXPRESS COMPANY, 200 VESEY STREET, NEW YORK NY 10285 |
| Mackay A D David |
director |
|
| Robert Allan Steele |
director |
1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202 |
| Jose Octavio Reyes |
director |
|
| Stephen L Gibbs |
officer: VP, Chief Accounting Officer |
C/O SCIENTIFIC GAMES CORPORATION, 1500 BLUEGRASS LAKES PARKWAY, ALPHARETTA, GA 30004 |
| Susan S Kilsby |
director |
33 COFFEE LANE, WATERBURY VT 05676 |
| Norman H Wesley |
director |
225 W WESTMINSTER, LAKE FOREST IL 60045 |
| Brian P Kelley |
director, officer: CEO and President |
P.O. BOX 90608, AUSTIN TX 78709 |
| Barbara D Carlini |
director |
C/O GREEN MOUNTAIN COFFEE ROASTERS INC 33 COFFEE LANE WATERBURY VT 05676 |
| Robert Paul Ostryniec |
officer: Chief Product Supply Officer |
33 COFFEE LANE, WATERBURY VT 05676 |
| Peter G Leemputte |
officer: Chief Financial Officer |
CHICAGO TITLE CORP, 171 N CLARK ST, CHICAGO IL 80601 |
| Michael J Mardy |
director |
|
| Frances G Rathke |
officer: Chief Financial Officer |
C/O GREEN MOUNTAIN COFFEE ROASTERS, INC., 33 COFFEE LANE, WATERBURY VT 05676 |
| Sonia Galindo |
officer: Corporate Secretary |
C/O ROSETTA STONE, 1621 NORTH KENT STREET, SUITE 1200, ARLINGTON VA 22209 |
Keurig Green Mountain (Keurig Green Mountain) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
GMCR has been successfully added to your