What is TSR 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, TSR's Probability of Financial Distress (%) is 0.01%.
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 TSR's Probability of Financial Distress (%)
For the Software - Application subindustry, TSR'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.
TSR's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, TSR's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where TSR's Probability of Financial Distress (%) falls into.
TSR 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 |
| = | -9.13 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.01% |
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).
TSR (TSRI) Business Description
Traded in Other Exchanges
N/A
Address
400 Oser Avenue, Suite 150, Hauppauge, NY, USA, 11788
TSR Inc is primarily engaged in the business of providing contract computer programming services to its customers. The company offers technical computer personnel to supplement its in-house information technology capabilities. It also gives staffing capabilities in the areas of mainframe and mid-range computer operations, personal computers and client-server support, internet and e-commerce operations, voice and data communications and helps desk support. Additionally, the company renders services on day-to-day operations, special projects, and on a short-term or long-term basis. It caters to various industries such as insurance, pharmaceutical and biotechnology, publishing and new media, financial services and project utilities.
Executives
| Howard Timothy Eriksen |
director |
567 WILDROSE CIRCLE, LYNDEN WA 98264 |
| Robert E Fitzgerald |
director |
2204 VAQUERO ESTATES BLVD, WESTLAKE TX 76262 |
| Bradley M Tirpak |
director |
50 ORCHARD ST., NEW YORK NY 10002 |
| Fintech Consulting, Llc |
10 percent owner |
120 S WOOD AVE, SUITE 300, ISELIN NJ 08830 |
| Thomas C Salerno |
officer: Chief Executive Officer |
600 WEST SADDLE RIVER ROAD, UPPER SADDLE RIVER NJ 07548 |
| Ira Cohen |
director |
|
| Zeff Capital, Lp |
10 percent owner |
400 S. MCCADDEN PL., LOS ANGELES CA 90020 |
| Joseph Pennacchio |
director |
|
| Kelly William J. Jr. |
director |
11 CARNEGIE AVENUE, COLD HARBOR NY 11724 |
| Joseph F Hughes |
director, 10 percent owner, officer: President and CEO |
C/O TSR INC, 400 OSER AVE #150, HAUPPAUGE NY 11788 |
| Winifred Hughes |
10 percent owner |
1278 RIDGE ROAD, LAUREL HOLLOW NY 11791 |
| Eric M Stein |
director |
15 HIGHLAND PLACE, BABYLON NY 11702 |
| Regina Dowd |
director |
275 FLINTLOCK ROAD, SOUTHPORT CT 06890 |
| Brian Mangan |
director |
45 DUNE COURT, NORTHPORT NY 11768 |
| Christopher J Hughes |
director |
C/O TSR INC, 400 OSER AVE #150, HAUPPAUGE NY 11788 |
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