What is O-I Glass 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, O-I Glass's Probability of Financial Distress (%) is 0.16%.
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 O-I Glass's Probability of Financial Distress (%)
For the Packaging & Containers subindustry, O-I Glass'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.
O-I Glass's Probability of Financial Distress (%) Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, O-I Glass's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where O-I Glass's Probability of Financial Distress (%) falls into.
O-I Glass 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 |
| = | -6.41 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.16% |
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).
O-I Glass (O-I Glass) Business Description
Traded in Other Exchanges
Address
One Michael Owens Way, Perrysburg, OH, USA, 43551
O-I Glass is the world's largest manufacturer of glass bottles; 70% of its revenue comes from outside the United States. O-I has a market-leading position in key markets such as Europe, North America, and Brazil, among others. Beer is the primary end market for O-I's glass bottles, which are also used for wine, soda, spirits, condiments, and food. In the coming years, O-I is looking to maintain or expand its dominant positions in Europe, North America, and South America.
Executives
| Andres Alberto Lopez |
officer: VP, President of Latin America |
ONE MICHAEL OWENS WAY, PERRYSBURG OH 43551 |
| Vitaliano Torno |
officer: President, O-I Europe |
O-I EUROPE SARL, EU HQ MEX EN FARAZ 5, VUFFLENS-LA-VILLE V8 1302 |
| Arnaud Aujouannet |
officer: SVP & Chief Sales & Marketing |
ONE MICHAEL OWENS WAY, PLAZA ONE, PERRYSBURG OH 43551 |
| Clark David V Ii |
director |
C/O O-I GLASS, INC., ONE MICHAEL OWENS WAY, PLAZA 1, PERRYSBURG OH 43551 |
| Darrow A Abrahams |
officer: SVP, GC & Corporate Secretary |
ONE MICHAEL OWENS WAY, PERRYSBURG OH 43551 |
| Mary Beth Wilkinson |
officer: Senior VP, GC & Secretary |
2350 GREEN ROAD, SUITE 100, ANN ARBOR MI 48105 |
| Samuel R. Chapin |
director |
940 WINTER STREET, C/O PERKINELMER, WALTHAM MA 02451 |
| Catherine I Slater |
director |
C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104 |
| Peter S Hellman |
director |
ONE BAXTER PARKWAY, DEERFIELD IL 60015 |
| Carol A Dudley-williams |
director |
912 W. SUGNET RD., MIDLAND MI 48640 |
| John H Walker |
director |
233 SOUTH WACKER DRIVE, CHICAGO IL 60606 |
| Timothy Connors |
officer: President, O-I Asia Pacific |
36 BURWOOD ROAD, HAWTHORN, VIC C3 3195 |
| Moyano Giancarlo Currarino |
officer: SVP, Chief Tech & SC Officer |
ONE MICHAEL OWENS WAY, PLAZA ONE, PERRYSBURG OH 43551 |
| John Humphrey |
director |
ENPRO INDUSTRIES, INC., 5605 CARNEGIE BLVD., SUITE 500, CHARLOTTE NC 28209 |
| Joseph D Rupp |
director |
QUANEX BUILDING PRODUCTS CORPORATION, 1800 W LOOP SOUTH, SUITE 1500, HOUSTON TX 77027 |
O-I Glass (O-I Glass) Headlines
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