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Interactive Strength (Interactive Strength) Probability of Financial Distress (%) : 88.78% (As of May. 26, 2024)


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What is Interactive Strength 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, Interactive Strength's Probability of Financial Distress (%) is 88.78%.

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 Interactive Strength's Probability of Financial Distress (%)

For the Personal Services subindustry, Interactive Strength'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.


Interactive Strength's Probability of Financial Distress (%) Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Interactive Strength's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Interactive Strength's Probability of Financial Distress (%) falls into.



Interactive Strength 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
=2.07

The Probability of Financial Distress (%) (PFD) was then obtianed by:

PFD=1/(1 + e^(-LPFD))*100%
=88.78%

The eight explanatory variables are:

1. NIMTAAVG = Net Income to Market Total Assets

NIMTAAVG=Net Income / Market Total Assets
=Net Income / (Market Cap + Total Liabilities)

*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

TLMTA=Total Liabilities / Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For non-financial companies, CASHMTA is measured as:

CASHMTA=Cash, Cash Equivalents, Marketable Securities / Market Total Assets

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).


Interactive Strength  (NAS:TRNR) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.


Interactive Strength Probability of Financial Distress (%) Related Terms

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Interactive Strength (Interactive Strength) Business Description

Traded in Other Exchanges
Address
1005 Congress Avenue, Suite 925 , Texas, Austin, TX, USA, 78701
Interactive Strength Inc provides an integrated home fitness platform that allows its customers to participate in interactive wellness and strength-based training sessions. Its health coaching services encompass guidance and coaching on nutrition, recovery, sleep, and other health and lifestyle categories. It generates revenue from sales of its connected fitness products, membership revenue, and personal training revenue.
Executives
Bradley James Wickens 10 percent owner PUDLICOTE HOUSE, PUDLICOTE LANE, CHIPPING NORTON, OXFORDSHIRE X0 OX7 3HX
Touw Kirsten Bartok director 125 SOUTH WACKER DRIVE, SUITE 300, CHICAGO IL 60606
Investments 1 Block.one 10 percent owner C/O MAPLES CORPORATE SERVICES LIMITED, PO BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104
Lock.one 10 percent owner C/O MAPLES CORPORATE SERVICES LIMITED, PO BOX 309, UGLAND HOUSE, S. CHURCH ST., GEORGE TOWN, GRAND CAYMAN E9 KY1-1104
Brendan Francis Blumer 10 percent owner C/O BLOCK.ONE, SUITE 4290, 48 MARKET STREET, CAMANA BAY, GRAND CAYMAN E9 KY1-9006
Trent Alexander Ward director, officer: Chief Executive Officer 942 N. LAUREL AVENUE, LOS ANGELES CA 90046
Michael Madigan officer: Principal Financial Officer 370 HOURGLASS LANE, BALDWINSVILLE NY 13027
Deepak Manu Mulchandani director 27660 SKYLARK LANE, SANTA CLARA CA 91350
Stuart Bryan officer: Principal Accounting Officer 22900 ALLEN COURT, SAINT CLAIR SHORES MI 48080
Weaver Aaron Ngoc Dung director 99 OAKLEY STREET, LONDON X0 SW3 5NR
Kokuei Yuan 10 percent owner SUITE 4290, 48 MARKET STREET, CAMANA BAY, GRAND CAYMAN E9 KY1-9006
Andrew Bliss 10 percent owner SUITE 4290, 48 MARKET STREET, CAMANA BAY, GRAND CAYMAN E9 KY1-9006

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