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CrowdStrike Holdings (CrowdStrike Holdings) Probability of Financial Distress (%)

: 0.03% (As of Today)
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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, CrowdStrike Holdings's Probability of Financial Distress (%) is 0.03%.

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

For the Software - Infrastructure subindustry, CrowdStrike Holdings'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.


CrowdStrike Holdings Probability of Financial Distress (%) Distribution

For the Software industry and Technology sector, CrowdStrike Holdings's Probability of Financial Distress (%) distribution charts can be found below:

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



CrowdStrike Holdings 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
=-8.14

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

PFD=1/(1 + e^(-LPFD))*100%
=0.03%

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).


CrowdStrike Holdings  (NAS:CRWD) 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.


CrowdStrike Holdings Probability of Financial Distress (%) Related Terms

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CrowdStrike Holdings (CrowdStrike Holdings) Business Description

Industry
Traded in Other Exchanges
Address
206 E. 9th Street, Suite 1400, Austin, TX, USA, 78701
CrowdStrike is a cloud-based cybersecurity company specializing in next-generation endpoint and cloud workload protection. CrowdStrike's primary offering is its Falcon platform that offers a proverbial single pane of glass for an enterprise to detect and respond to security threats attacking its IT infrastructure. The Texas-based firm was founded in 2011 and went public in 2019.
Executives
Michael Sentonas officer: PRESIDENT C/O CROWDSTRIKE, INC., 206 E. 9TH STREET, SUITE 1400, AUSTIN TX 78701
George Kurtz director, 10 percent owner, officer: PRESIDENT AND CEO CROWDSTRIKE HOLDINGS, INC., 150 MATHILDA PLACE, SUITE 300, SUNNYVALE CA 94086
Sameer K Gandhi director, 10 percent owner
Anurag Saha officer: CHIEF ACCOUNTING OFFICER 206 E. 9TH STREET, SUITE 1400, AUSTIN TX 78701
Shawn Henry officer: Please see remarks CROWDSTRIKE HOLDINGS, INC., 150 MATHILDA PLACE, SUITE 300, SUNNYVALE CA 94086
Burt W. Podbere officer: CHIEF FINANCIAL OFFICER CROWDSTRIKE HOLDINGS, INC., 150 MATHILDA PLACE, SUITE 300, SUNNYVALE CA 94086
Denis Oleary director 40 MORRIS LANE, SCARSDALE NY 10583
Godfrey Sullivan director SPLUNK INC., 250 BRANNAN STREET, SAN FRANCISCO CA 94107
Roxanne S Austin director 200 N SEPULVEDA BLVD, PO BOX 956 MS ES/001/A102, EL SEGUNDO CA 90245
Johanna Flower director C/O FRESHWORKS INC., 2950 S DELAWARE STREET, SUITE 201, SAN MATEO CA 94403
Gerhard Watzinger director 2821 TARFLOWER WAY, NAPLES FL 34105
Michael J. Carpenter officer: PRES., GLBAL SALES & FLD OPS CROWDSTRIKE HOLDINGS, INC., 150 MATHILDA PLACE, SUITE 300, SUNNYVALE CA 94086
Black Colin officer: CHIEF OPERATING OFFICER CROWDSTRIKE HOLDINGS, INC., 150 MATHILDA PLACE, SUITE 300, SUNNYVAL CA 94086
Abhishek Maheshwari officer: CHIEF ACCOUNTING OFFICER CROWDSTRIKE HOLDINGS, INC., 150 MATHILDA PLACE, SUITE 300, SUNNYVALE CA 94086
Cary Davis director C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017