What is Innovative Designs 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, Innovative Designs's Probability of Financial Distress (%) is 0.27%.
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 Innovative Designs's Probability of Financial Distress (%)
For the Apparel Retail subindustry, Innovative Designs'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.
Innovative Designs's Probability of Financial Distress (%) Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Innovative Designs's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Innovative Designs's Probability of Financial Distress (%) falls into.
Innovative Designs 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 |
| = | -5.92 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.27% |
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).
Innovative Designs (Innovative Designs) Business Description
Traded in Other Exchanges
N/A
Address
124 Cherry Street, Pittsburgh, PA, USA, 15223
Innovative Designs Inc markets cold-weather recreational and industrial clothing products, as well as house wrap, which is made from INSULTEX, a low density foamed polyethylene with buoyancy, scent block and thermal resistant properties. The business activity of the firm is operated through two segments Apparel and Housewrap. The Apparel segment offers a range of cold weather apparel and related items. The Housewrap segment includes its INSULTEX House Wrap and its own seam tape. It generates maximum revenue from the Housewrap segment.
Executives
| Robert Kennedy Adams |
director |
3509 WILLIAM PENN DR., SAN ANTONIO TX 78230 |
| Donald Vincent Garlotta |
director |
124 CHERRY STREET, PITTSBURGH PA 15223 |
| Joseph Riccelli |
director, 10 percent owner, officer: Chief Executive Officer |
223 NORTH MAIN STREET, SUITE 1, PITTSBURGH PA 15215 |
| Dean Kolocouris |
director |
109 FOX PATH, MOON TWP PA 15108 |
| Daniel P Rains |
director |
2509 WIEWAN ROAD, ALIQUIPPA PA 15001 |
| Robert D Monsour |
director |
223 NORTH MAIN STREET, SUITE 1, PITTSBURGH PA 15215 |
| Innovative Designs Inc |
director |
124 CHERRY ST., STE 1, PITTSBURGH PA 15223 |
| Joseph A Riccelli |
officer: Vice President |
223 NORTH MAIN STREET, SUITE 1, PITTSBURGH PA 15215 |
| Dean P Kolocouris |
director |
223 NORTH MAIN STREET, SUITE 1, PITTSBURGH PA 15215 |
| Frank Riccelli |
director, 10 percent owner, officer: President |
223 NORTH MAIN STREET, SUITE 1, PITTSBURGH PA 15215 |
| Dominic Cerniglia |
director |
223 NORTH MAIN STREET, SUITE 1, PITTSBURGH PA 15215 |
| Anthony Fonzi |
director, officer: Chief Financial Officer |
223 NORTH MAIN STREET, SUITE 1, PITTSBURGH PA 15215 |
Innovative Designs (Innovative Designs) Headlines
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