What is Innovative Payment 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, Innovative Payment Solutions's Probability of Financial Distress (%) is 23.91%.
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 Innovative Payment Solutions's Probability of Financial Distress (%)
For the Software - Infrastructure subindustry, Innovative Payment 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.
Innovative Payment Solutions's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, Innovative Payment Solutions's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Innovative Payment Solutions's Probability of Financial Distress (%) falls into.
Innovative Payment 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 |
| = | -1.16 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 23.91% |
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).
Innovative Payment Solutions Business Description
Traded in Other Exchanges
N/A
Address
56B 5th Street, Lot 1, Suite AT, Carmel by the Sea, CA, USA, 93921
Innovative Payment Solutions Inc provides an integrated network of kiosks, terminals, and payment channels that enable consumers to deposit cash, convert it into a digital form, and remit the funds to any merchant in its network quickly and securely. IPSIPay is a digital payment platform connects and empowers businesses and consumers, freelancers and merchants, those with bank accounts and those without.
Executives
| Richard Rosenblum |
10 percent owner, other: President and CFO |
19 HORIZON DRIVE, WAYNE NJ 07470 |
| David F Rios |
director |
14924 DIDUCA WAY, LOS GATOS CA 95032 |
| Clifford W. Henry |
director |
PO BOX 1148, ZEPHYR COVE NV 89449-1148 |
| Madisson Gracee Corbett |
director |
19355 BUSINESS CENTER DRIVE., #9, NORTHRIDGE CA 91324 |
| James W Fuller |
director |
C/O BAYTREE CAPITAL ASSOCIATES LLC, 40 WALL STREET, 58TH FLOOR, NEW YORK NY 10005 |
| Andrey Novikov |
director, officer: CHIEF TECHNOLOGY OFFICER |
19355 BUSINESS CENTER DRIVE , #9, NORTHRIDG CA 91324 |
| William D. Corbett |
director, officer: Chief Executive Officer |
1720 W DIVISION STREET, 3RD FLOOR, CHICAGO IL 606622 |
| Jimmy I Gibbs |
10 percent owner |
9855 WARREN H. ABERNATHY HIGHWAY, SPARTANBURG SC 29301 |
| Mark John Korb |
officer: Chief Financial Officer |
1900 GLADES ROAD, SUITE 435, BOCA RATON FL 33431 |
| Gaston Singh Pereira |
director, officer: Chairman of the Board and CEO |
1900 GLADES ROAD, SUITE 265, BOCA RATON FL 33431 |
| Sarmad Singh Harake |
director |
1900 GLADES ROAD, SUITE 265, BOCA RATON NY 33431 |
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