What is CHC Group 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, CHC Group'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 CHC Group's Probability of Financial Distress (%)
For the Oil & Gas Equipment & Services subindustry, CHC Group'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.
CHC Group's Probability of Financial Distress (%) Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, CHC Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where CHC Group's Probability of Financial Distress (%) falls into.
CHC Group 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).
CHC Group (CHC Group) Business Description
Traded in Other Exchanges
N/A
Address
CHC Group Ltd is a commercial helicopter service provider to the offshore oil and gas industry. The company operates in two segments including the Helicopter Services segment which includes flying operations around the world serving offshore oil and gas. Heli-One segment provides helicopter maintenance, repair, and overhaul services for fleet and for an external customer base primarily in Europe, Asia, and North America. The company has a global market presence with the majority of the revenue generated from Norway.
Executives
| William L Transier |
director |
3505 W SAM HOUSTON PKWY NORTH, SUITE 400, HOUSTON TX 77043 |
| Cd&r Investment Associates Ix, Ltd. |
10 percent owner |
MAPLES CORPORATE SERVICES LIMITED, UGLAND HOUSE, GRAND CAYMAN E9 KY101194 |
| William G. Schrader |
director |
HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036 |
| Francis S Kalman |
director |
777 N ELDRIDGE PARKWAY, HOUSTON TX 77079 |
| Lee Eckert |
officer: SVP and CFO |
C/O CHC GROUP LTD., 190 ELGIN AVENUE, GEORGE TOWN, GRAND CAYMAN E9 KY1-9005 |
| Amelio J. William |
director, officer: President and CEO |
C/O CHC GROUP LTD., 190 ELGIN AVENUE, GEORGE TOWN, GRAND CAYMAN E9 KY1-9005 |
| Michael J Oneill |
officer: Senior Vice President |
1299 PENNSYVLANIA AVE NW, HOWREY SIMON ARNOLD & WHITE, WASHINGTON DC 20004 |
| Peter Bartolotta |
officer: Chief Operating Officer |
C/O CHC GROUP LTD., 190 ELGIN AVENUE, GEORGE TOWN E9 KY1-9005 |
| Joan S Hooper |
officer: Chief Financial Officer |
ONE DELL WAY, ROUND ROCK TX 78682 |
| John Krenicki |
director |
333 W. SHERIDAN AVE, OKLAHOMA CITY OK 73102 |
| Nathan K Sleeper |
director |
375 PARK AVENUE, 18TH FLOOR, NEW YORK CITY NY 10152 |
| John Mogford |
director |
25 VICTORIA STREET, LONDON X0 SW1H 0EX |
| Michael L Summers |
officer: Senior Vice President |
C/O CELANESE CORPORATION, 1601 W. LBJ FREEWAY, DALLAS TX 75234 |
| Fr Xi Offshore Gp Ltd |
director, 10 percent owner |
ONE LAFAYETTE PLACE, THIRD FLOOR, GREENWICH CT 06830 |
| First Reserve Gp Xii Ltd |
director, 10 percent owner |
262 HARBOR DRIVE, THIRD FLOOR, STAMFORD CT 06902 |
CHC Group (CHC Group) Headlines
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