What is Pandora Media 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, Pandora Media'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 Pandora Media's Probability of Financial Distress (%)
For the Broadcasting subindustry, Pandora Media'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.
Pandora Media's Probability of Financial Distress (%) Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Pandora Media's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Pandora Media's Probability of Financial Distress (%) falls into.
Pandora Media 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 |
| = | 0.00 |
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
*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).
Pandora Media (Pandora Media) Business Description
Traded in Other Exchanges
N/A
Address
Pandora Medic Inc is a radio broadcasting company that offers music streaming and automated music recommendation services. Pandora allows users to listen to music selections based on the user's artist or genre preference and then provide positive or negative feedback, which is utilized by the program to choose subsequent musical selections. Pandora can be accessed through a web browser or the company's application that can be downloaded to a personal computer or mobile phone. The service is available in the United States, Australia, and New Zealand. Pandora derives the majority of its revenue in the United States.
Executives
| Gregory B Maffei |
director |
12300 LIBERTY BLVD, ENGLEWOOD CO 80112 |
| Karen Sammis Walker |
officer: Chief Accounting Officer |
2101 WEBSTER STREET, #1650, OAKLAND CA 94612 |
| S Aimee Lapic |
officer: Chief Marketing Officer |
2101 WEBSTER ST #1650, OAKLAND CA 94612 |
| Michael Lynton |
director |
2000 AVENUE OF THE STARS 12TH FL, LOS ANGELES CA 90067 |
| David J Frear |
director |
1221 AVENUE OF THE AMERICAS, NEW YORK NY 10020 |
| Naveen K. Chopra |
officer: Chief Financial Officer |
C/O 2160 GOLD STREET, SAN JOSE CA 95002 |
| Stephen G Bene |
officer: General Counsel & Secretary |
C/O ELECTRONIC ARTS INC., 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065 |
| James E Meyer |
director |
6922 HOLLYWOOD BLVD., 12TH FLOOR, LOS ANGELES CA 90028 |
| Roger Lynch |
director, officer: CEO & President |
PANDORA MEDIA, INC., 2101 WEBSTER STREET, SUITE 1650, OAKLAND CA 94612 |
| Liberty Media Corp |
director, 10 percent owner |
12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112 |
| Elizabeth A Nelson |
director |
MACROMEDIA/ 600 TOWNSEND ST, SAN FRANCISCO CA 94103 |
| Peter C Gotcher |
director |
|
| James Feuille |
director |
TWO EMBARCADERO, SUITE 2200, SAN FRANCISCO CA 94111 |
| Peter Chernin |
director |
1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036 |
| Crosslink Capital Inc |
other: Affiliate of Director |
2180 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025 |
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