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G-Resources Group (HKSE:01051) Probability of Financial Distress (%) : 0.00% (As of May. 26, 2024)


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What is G-Resources 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, G-Resources 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 G-Resources Group's Probability of Financial Distress (%)

For the Asset Management subindustry, G-Resources 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.

G-Resources Group's Probability of Financial Distress (%) Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, G-Resources Group's Probability of Financial Distress (%) distribution charts can be found below:

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


G-Resources 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
=-18.79

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).

G-Resources Group  (HKSE:01051) 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.

G-Resources Group Probability of Financial Distress (%) Related Terms

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G-Resources Group (HKSE:01051) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » G-Resources Group Ltd (HKSE:01051) » Definitions » Probability of Financial Distress (%)
Comparable Companies
HKSE:01140 HKSE:01697 HKSE:00612 HKSE:00133 HKSE:00129 HKSE:00204 HKSE:00993 HKSE:820 HKSE:00214 HKSE:01328 BLK BX KKR OSTO:INVE A APO TSX:BN BK AMP LSE:III XSWX:PGHN
Traded in Other Exchanges
GGPXF:USA
Address
No. 151 Gloucester Road, Room 1801, 18th Floor, Capital Centre, Wanchai, Hong Kong, HKG
Website
https://www.g-resources.com
G-Resources Group Ltd is an investment and financial services company. The company is split across three segments: Principal investment business, Financial services business, and Real property business. The Principal investment business which derives majority revenue invests in listed and unlisted financial securities, including shares, bonds, and managed investments. The Financial services business generates revenue primarily from interest from money lending operations, and partly from commission income from financial services provided. The Real property business invests in Hong Kong commercial property and derives income through rent.
Executives
Ortiz Espinosa Elvin Alan 2201 Interest of corporation controlled by you
Sprout Wings Limited 2201 Interest of corporation controlled by you
19 Growth Capital Fund Gp, Inc. 2201 Interest of corporation controlled by you
19 Growth Equity Fund, Lp 2101 Beneficial owner
Buckley John Paul 2201 Interest of corporation controlled by you
Zhang Zheng 2201 Interest of corporation controlled by you
Px Capital Management Ltd. 2201 Interest of corporation controlled by you
Px Capital Partners L.p. 2101 Beneficial owner
Px Global Advisors, Llc 2201 Interest of corporation controlled by you
Xie Pengfei 2201 Interest of corporation controlled by you

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