What is Old Dominion Freight Line 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, Old Dominion Freight Line'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 Old Dominion Freight Line's Probability of Financial Distress (%)
For the Trucking subindustry, Old Dominion Freight Line'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.
Old Dominion Freight Line's Probability of Financial Distress (%) Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Old Dominion Freight Line's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Old Dominion Freight Line's Probability of Financial Distress (%) falls into.
Old Dominion Freight Line 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 |
| = | -8.12 |
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).
Old Dominion Freight Line (Old Dominion Freight Line) Business Description
Traded in Other Exchanges
Address
500 Old Dominion Way, Thomasville, NC, USA, 27360
Old Dominion Freight Line is the second-largest less than truckload carrier in the United States, with more than 250 service centers and 11,000-plus tractors. It is one of the most disciplined and efficient providers in the trucking industry, and its profitability and capital returns stand head and shoulders above its peers. Strategic initiatives revolve around increasing network density through market share gains and maintaining industry-leading service via steadfast infrastructure investment.
Executives
| David S Congdon |
director, 10 percent owner, officer: President and COO |
C/O OLD DOMINION FREIGHT LINE, INC., 500 OLD DOMINION WAY, THOMASVILLE NC 27360 |
| Stith Thomas A. Iii |
director |
500 OLD DOMINION WAY, THOMASVILLE NC 27360 |
| Steven W. Hartsell |
officer: SVP - Sales |
500 OLD DOMINION WAY, THOMASVILLE NC 27360 |
| Andrew Stephen Davis |
director |
500 OLD DOMINION WAY, THOMASVILLE NC 27360 |
| Christopher James Kelley |
officer: SVP - Operations |
500 OLD DOMINION WAY, THOMASVILLE NC 27360 |
| Bradley R Gabosch |
director |
500 OLD DOMINION WAY, THOMASVILLE NC 27360 |
| David J. Bates |
officer: SVP - Operations |
C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831 |
| Leo H Suggs |
director |
UNION PACIFIC CORP, 1416 DODGE ST, OMAHA NE 68179 |
| D. Michael Wray |
director |
7205 PINETREE ROAD, RICHMOND VA 23229 |
| Gregory B Plemmons |
officer: SVP - Sales |
500 OLD DOMINION WAY, THOMASVILLE NC 27360 |
| Wendy T. Stallings |
director |
500 OLD DOMINION WAY, THOMASVILLE NC 27360 |
| Earl E Congdon |
director, officer: Chairman of the Board and CEO |
C/O OLD DOMINION FREIGHT LINE, INC., 500 OLD DOMINION WAY, THOMASVILLE NC 27360 |
| Sherry A Aaholm |
director |
500 JACKSON STREET, COLUMBUS IN 47201 |
| Christopher T Brooks |
officer: SVP - Human Resources & Safety |
500 OLD DOMINION WAY, THOMASVILLE NC 27360 |
| Kimberly S Maready |
officer: VP - Accounting & Fin. (PAO) |
500 OLD DOMINION WAY, THOMASVILLE NC 27360 |
Old Dominion Freight Line (Old Dominion Freight Line) Headlines
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