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Lazard Global Total Return & Fd (Lazard Global Total Return & Fd) Probability of Financial Distress (%) : 0.00% (As of Jun. 08, 2024)


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What is Lazard Global Total Return & Fd 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, Lazard Global Total Return & Fd'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 Lazard Global Total Return & Fd's Probability of Financial Distress (%)

For the Asset Management subindustry, Lazard Global Total Return & Fd'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.


Lazard Global Total Return & Fd's Probability of Financial Distress (%) Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Lazard Global Total Return & Fd's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Lazard Global Total Return & Fd's Probability of Financial Distress (%) falls into.



Lazard Global Total Return & Fd 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
=-12.05

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 banks, 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).


Lazard Global Total Return & Fd  (NYSE:LGI) 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.


Lazard Global Total Return & Fd Probability of Financial Distress (%) Related Terms

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Lazard Global Total Return & Fd (Lazard Global Total Return & Fd) Business Description

Traded in Other Exchanges
N/A
Address
30 Rockefeller Plaza, 57th Floor, New York, NY, USA, 10112
Lazard Global Total Return & Inc Fd Inc is a United States-based diversified, closed-end management investment company. Its investment objective is total return consisting of capital appreciation and income. The fund's portfolio of investment consists of different sector investments such as consumer staples, financials, consumer discretionary, healthcare, materials, sovereign debt, and others.
Executives
Christopher Snively officer: Chief Financial Officer C/O LAZARD ASSET MANAGEMENT LLC, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Evan L Russo director C/O LAZARD LTD, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Nargis Hilal officer: Chief Compliance Officer C/O LAZARD ASSET MANAGEMENT LLC, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Andrew Lacey other: Deputy Chairman of LAM (1)
Christina M. Kennedy officer: Assistant Treasurer C/O LAZARD ASSET MANAGEMENT LLC, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Jessica A Falzone officer: Assistant Secretary C/O LAZARD ASSET MANAGEMENT, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
William B Rosenberg other: See comment* C/O LAZARD ASSET MANAGEMENT, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Ronald Temple other: Portfolio manager of issuer C/O LAZARD ASSET MANAGEMENT, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Shari L. Soloway officer: Assistant Secretary C/O LAZARD ASSET MANAGEMENT LLC, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Mark Richard Anderson officer: Chief Compliance Officer C/O LAZARD MANAGEMENT LLC, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Franci J Blassberg director C/O DEBEVOISE & PLIMPTON LLP, 919 THIRD AVENUE, NEW YORK NY 10022
Tamar Goldstein officer: Interim CCO & Asst. Secy(1) 30 ROCKEFELLER PLAZA, NEW YORK NY 10112-6300
Trevor William Morrison director 40 WASHINGTON SQUARE SOUTH, 406D, NEW YORK NY 10012
Barnaby Wilson other: Portfolio manager of issuer C/O LAZARD ASSET MANAGEMENT, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112
Louis Florentin-lee other: Portfolio manager of issuer C/O LAZARD ASSET MANAGEMENT, 30 ROCKEFELLER PLAZA, NEW YORK NY 10112

Lazard Global Total Return & Fd (Lazard Global Total Return & Fd) Headlines

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