What is Consensus Cloud Solutions 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, Consensus Cloud Solutions's Probability of Financial Distress (%) is 0.22%.
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 Consensus Cloud Solutions's Probability of Financial Distress (%)
For the Software - Infrastructure subindustry, Consensus Cloud Solutions'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.
Consensus Cloud Solutions's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, Consensus Cloud Solutions's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Consensus Cloud Solutions's Probability of Financial Distress (%) falls into.
Consensus Cloud Solutions 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 |
| = | -6.13 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.22% |
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).
Consensus Cloud Solutions (Consensus Cloud Solutions) Business Description
Traded in Other Exchanges
N/A
Address
700 South Flower Street, 15th Floor, Los Angeles, CA, USA, 90017
Consensus Cloud Solutions Inc is a provider of secure information delivery services with a scalable Software-as-a-Service SaaS platform. It is engaged in fax cloud. Geographically, it derives a maximum revenue from the United States.
Executives
| James C Malone |
officer: Chief Financial Officer |
3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305 |
| Elaine Healy |
director |
|
| Douglas Y Bech |
director |
C/O J2 GLOBAL COMMUNICATIONS INC, 6922 HOLLYWOOD BLVD/LEGAL DEPT - 5TH FL., LOS ANGELES CA 90028 |
| Pamela Sutton-wallace |
director |
197 VAN VORST ST, APT 1505, JERSEY CITY NJ 07302 |
| Steve Emberland |
officer: Vice President, Controller |
700 S. FLOWER STREET, 15TH FLOOR, LOS ANGELES CA 90017 |
| John Nebergall |
officer: Chief Operating Officer |
700 S. FLOWER STREET, 15TH FLOOR, LOS ANGELES CA 90017 |
| Nathaniel Simmons |
director |
700 S. FLOWER STREET, 15TH FLOOR, LOS ANGELES CA 90017 |
| Jeffrey Alan Sullivan |
officer: Chief Technology Officer |
700 S. FLOWER STREET, 15TH FLOOR, LOS ANGELES CA 90017 |
| R Scott Turicchi |
director, officer: CEO & CFO |
C/O J2 GLOBAL COMMUNICATIONS, INC., 6922 HOLLYWOOD BLVD, 5TH FLOOR, LOS ANGELES CA 90028 |
| Jeremy Rossen |
director, officer: President |
ZIFF DAVIS INC, 114 5TH AVE,14TH AND 15TH FLOOR, NEW YORK NY 10011 |
| Stephen Ross |
director |
|
| J2 Global, Inc. |
10 percent owner |
114 5TH AVENUE, NEW YORK NY 10011 |
| Vithya Aubee |
director, officer: VP & Secretary |
700 S. FLOWER STREET, 15TH FLOOR, LOS ANGELES CA 90017 |
Consensus Cloud Solutions (Consensus Cloud Solutions) Headlines
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