What is Trans-Lux 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, Trans-Lux's Probability of Financial Distress (%) is 0.15%.
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 Trans-Lux's Probability of Financial Distress (%)
For the Electronic Components subindustry, Trans-Lux'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.
Trans-Lux's Probability of Financial Distress (%) Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Trans-Lux's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Trans-Lux's Probability of Financial Distress (%) falls into.
Trans-Lux 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 |
| = | -6.53 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.15% |
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).
Trans-Lux (Trans-Lux) Business Description
Traded in Other Exchanges
N/A
Address
254 West 31st Street, 12th Floor, New York, NY, USA, 10001
Trans-Lux Corp is engaged in the design, manufacture, market, and services of light-emitting diode display and lighting solutions. The company operates through two segments, namely Digital product sales and Digital product lease and maintenance. Its Digital product sales segment is involved in the sale of equipment. The Digital product lease and maintenance segment is comprised of the lease and maintenance of equipment. Digital product sales contribute to the majority of the revenue. It serves various sectors such as sports arenas and stadiums, financial institutions, educational institutions, advertising, corporate and government communication centers, retail outlets, and others. The company conducts its business operations in the United States and Canada.
Executives
| Durkin Thomas E Iii |
officer: EVP & General Counsel |
|
| Yantao Yu |
director |
C/O TRANS-LUX CORPORATION, 135 EAST 57TH STREET, 14TH FLOOR, NEW YORK NY 10022 |
| Nicholas J Fazio |
director, 10 percent owner |
C/O TRANS-LUX CORPORATION, 135 EAST 57TH STREET, 14TH FLOOR, NEW YORK NY 10022 |
| Unilumin North America, Inc. |
10 percent owner |
C/O UNILUMIN LED TECHNOLOGY FL LLC, 254 WEST 31ST STREET, NEW YORK NY 10001 |
| Trans Lux Corp |
officer: Vice President |
135 EAST 57TH STREET, 14TH FLOOR, NEW YORK NY 10022 |
| Todd Dupee |
officer: Vice President |
216 EAST 36TH ST, APT 2R, NEW YORK NY 10016 |
| George W Schiele |
director |
19 HILL ROAD, GREENWICH CT 06830 |
| David Pavlik |
officer: President of TL Energy |
3301 N HAMILTON AVE, CHICAGO IL 60618 |
| Marco M Elser |
director |
VIA SISTINA 121, ROME L6 00187 |
| Ryan J. Morris |
director |
531 E. STATE ST., ITHACA NY 14850 |
| Yaozhong Shi |
director |
950 THIRD AVENUE, SUITE 2804, NEW YORK NY 10022 |
| David Joseph Osher |
officer: Chief Operating Officer |
950 THIRD AVE SUITE 2804, NEW YORK NY 10022 |
| Robert J Conologue |
officer: Chief Financial Officer |
216 LEROY AVENUE, DARIEN CT 06820 |
| Alberto Shaio |
director |
|
| Alan K Greene |
director |
|
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