What is Whole Foods Market 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, Whole Foods Market'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 Whole Foods Market's Probability of Financial Distress (%)
For the Grocery Stores subindustry, Whole Foods Market'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.
Whole Foods Market's Probability of Financial Distress (%) Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Whole Foods Market's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Whole Foods Market's Probability of Financial Distress (%) falls into.
Whole Foods Market 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).
Whole Foods Market (Whole Foods Market) Business Description
Traded in Other Exchanges
N/A
Address
Whole Foods Market is the world's leading retailer of natural and organic foods by units and is the first certified organic grocer in the United States. Whole Foods' only operating segment consists of natural and organic foods supermarkets. As of fiscal 2016, the company had 456 stores in the United States, Canada, and the United Kingdom. The average store size is about 39,000 square feet. About 15% of the company's sales were derived from the sale of private-label products. The company announced a pending acquisition by Amazon in June 2017.
Executives
| Scott F Powers |
director |
STATE STREET CORPORATION, ONE LINCOLN STREET, BOSTON MA 02111 |
| Sharon Mccollam |
director |
C/O OFFICEMAX INCORPORATED, 263 SHUMAN BLVD., NAPERVILLE IL 60563 |
| Ken C Hicks |
director |
150 N. ORANGE GROVE BLVD, PASADENA CA 91103 |
| Mary Ellen Coe |
director |
2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033 |
| Gabrielle Sulzberger |
director |
450 LEXINGTON AVENUE, FLOOR 13, NEW YORK NY 10017 |
| Glenda J Flanagan |
officer: Executive Vice President |
550 BOWIE STREET, AUSTIN TX 78703 |
| Joseph D Mansueto |
director |
C/O MORNINGSTAR, INC., 225 WEST WACKER DRIVE, CHICAGO IL 60606 |
| Robb Walter E Iv |
director |
550 BOWIE STREET, AUSTIN TX 78703 |
| Ralph Z Sorenson |
director |
WHOLE FOODS MARKET, INC. 550 BOWIE STREET AUSTIN TX 78703 |
| William A Tindell |
director |
500 FREEPORT PARKWAY, COPPELL TX 75019 |
| Green Equity Investors V, L.p. |
other: See General Remarks. |
11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025 |
| Gei Capital V, Llc |
other: See General Remarks. |
11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025 |
| Green Equity Investors Side V, L.p. |
other: See General Remarks. |
11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025 |
| Green V Holdings, Llc |
other: See General Remarks. |
11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025 |
| Lgp Management Inc |
other: See General Remarks. |
11111 SANTA MONICA BLVD, STE 2000, LOS ANGELES CA 90025 |
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