What is Kimberly-Clark 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, Kimberly-Clark's Probability of Financial Distress (%) is 0.03%.
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 Kimberly-Clark's Probability of Financial Distress (%)
For the Household & Personal Products subindustry, Kimberly-Clark'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.
Kimberly-Clark's Probability of Financial Distress (%) Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Kimberly-Clark's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Kimberly-Clark's Probability of Financial Distress (%) falls into.
Kimberly-Clark 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 |
| = | -8.04 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
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).
Kimberly-Clark (Kimberly-Clark) Business Description
Traded in Other Exchanges
Address
P.O. Box 619100, Dallas, TX, USA, 75261-9100
With more than half of sales from personal care and another third from tissue products, Kimberly-Clark sits as a leading manufacturer in the tissue and hygiene realm. Its brand mix includes Huggies, Pull-Ups, Kotex, Depend, Kleenex, and Cottonelle. The firm also operates K-C Professional, which partners with businesses to provide safety and sanitary products for the workplace. Kimberly-Clark generates just over of half its sales in North America and more than 10% in Europe, with the rest primarily concentrated in Asia and Latin America.
Executives
| Jeffrey P. Melucci |
officer: SVP - General Counsel |
351 PHELPS DRIVE, IRVING TX 75038 |
| Zackery A Hicks |
officer: Chief Digital & Technology Off |
C/O SIGNET JEWELERS LIMITED, 375 GHENT ROAD, AKRON OH 44333 |
| Deeptha Khanna |
director |
PO BOX 619100, DALLAS TX 75261 |
| Sandra R Karrmann |
officer: Chief Human Resources Officer |
P.O. BOX 619100, DALLAS TX 75261-9100 |
| Doug Cunningham |
officer: President, EMEA |
PO BOX 619100, DALLAS TX 75261 |
| Andrew Drexler |
officer: Vice President and Controller |
C/O GNC HOLDINGS, INC., 300 SIXTH AVENUE, PITTSBURGH PA 15222 |
| Michael D. Hsu |
officer: Group Pres., NACP |
C/O KRAFT FOODS GROUP, INC., THREE LAKES DRIVE, NORTHFIELD IL 60048 |
| Tristram Wilkinson |
officer: President, EMEA |
P.O. BOX 619100, DALLAS TX 75261-9100 |
| Tamera Fenske |
officer: Chief Supply Chain Officer |
PO BOX 619100, DALLAS TX 75261 |
| Sylvia M Mathews |
director |
P.O. BOX 619100, DALLAS TX 75261 |
| Nelson Urdaneta |
officer: Chief Financial Officer |
C/O MONDELEZ INTERNATIONAL, INC., THREE PARKWAY NORTH, DEERFIELD IL 60015 |
| Todd Maclin |
director |
P.O. BOX 619100, DALLAS TX 75261 |
| Ehab Abou-oaf |
officer: President KCP |
PO BOX 619100, DALLAS TX 75261 |
| Deirdre Mahlan |
director |
1201 DOWDELL LANE, SAINT HELENA CA 94574 |
| Jaime A Ramirez |
director |
1000 STANLEY DRIVE, NEW BRITAIN CT 06053 |
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