What is RGC Resources 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, RGC Resources's Probability of Financial Distress (%) is 0.04%.
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 RGC Resources's Probability of Financial Distress (%)
For the Utilities - Regulated Gas subindustry, RGC Resources'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.
RGC Resources's Probability of Financial Distress (%) Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, RGC Resources's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where RGC Resources's Probability of Financial Distress (%) falls into.
RGC Resources 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 |
| = | -7.71 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.04% |
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).
RGC Resources (RGC Resources) Business Description
Traded in Other Exchanges
N/A
Address
519 Kimball Avenue North East, Roanoke, VA, USA, 24016
RGC Resources Inc is involved in the business of distribution and sale of natural gas to residential, commercial, and industrial customers within its service territory in Roanoke, Virginia and its surrounding localities as well as it also provides certain non-regulated services. The company relies on multiple interstate pipelines to transport natural gas. The company operates in three segments: Gas Utility, which is the key revenue generator; Investment in Affiliates this segment reflects the income generated through the activities of the Company's investment in MVP and Southgate projects and Parent & Other include the unregulated activities of the Company as well as certain corporate eliminations.
Executives
| Christen Brooke Miles |
officer: VP, Human Resources |
P.O. BOX 13007, ROANOKE VA 24030 |
| Lawrence T. Oliver |
officer: VP, Interim CFO, Sec. & Treas. |
P. O. BOX 13007, ROANOKE VA 24030 |
| Robert B Johnston |
director |
|
| Jason A. Field |
officer: VP, Treasurer & CFO |
P. O. BOX 13007, ROANOKE VA 24030 |
| Williamson John B Iii |
director, officer: Chairman, President & CEO |
PO BOX 13007, ROANOKE VA 24030 |
| Paul W Nester |
officer: VP, Treasurer & CFO |
P.O. BOX 13007, ROANOKE VA 24030 |
| Anita G Zucker |
10 percent owner |
4838 JENKINS AVE, N CHARLESTON SC 29405 |
| Elizabeth A Mcclanahan |
director |
P. O. BOX 13007, ROANOKE VA 24030 |
| Jacqueline L. Archer |
director |
P. O. BOX 13007, ROANOKE VA 24030 |
| Burton Randall P. Ii |
other: Former VP, CFO, Sec. & Treas. |
P. O. BOX 13007, ROANOKE VA 24030 |
| Shockley C James Jr |
officer: VP & COO |
P.O. BOX 13007, ROANOKE VA 24030 |
| Wells Robert L Ii |
officer: VP, CIO, Asst. Sec. & Treas. |
P.O. BOX 13007, ROANOKE VA 24030 |
| Nancy H Agee |
director |
PO BOX 13007, ROANOKE VA 24030 |
| D Orazio John S |
officer: VP & COO Roanoke Gas Co (sub) |
PO BOX 13007, ROANOKE VA 24030 |
| Smoot Raymond D Jr |
director |
P. O. BOX 13007, ROANOKE VA 24030 |
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