What is Coupa Software 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, Coupa Software's Probability of Financial Distress (%) is 50.00%.
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 Coupa Software's Probability of Financial Distress (%)
For the Software - Application subindustry, Coupa Software'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.
Coupa Software's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, Coupa Software's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Coupa Software's Probability of Financial Distress (%) falls into.
Coupa Software 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% |
| = | 50.00% |
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).
Coupa Software (Coupa Software) Business Description
Traded in Other Exchanges
N/A
Address
1855 S. Grant Street, San Mateo, CA, USA, 94402
Coupa Software is a cloud-based provider of business spending management solutions. Its BSM platform provides visibility into all spending, allowing companies to gain control over their spending, optimize their supplier network and supply chains, and manage liquidity. The platform's transactional core consists of procurement, invoicing, expense management, and payment solutions, while supporting modules ranging from strategic sourcing solutions to supply chain design and planning solutions round out the comprehensive spending management ecosystem.
Executives
| Scott Thompson |
director |
C/O YAHOO! INC., 701 FIRST AVENUE, MS 1GA-5, SUNNYVALE CA 94089 |
| Veenendaal Frank Van |
director |
C/O SALESFORCE.COM, 1 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94105 |
| Roger S Siboni |
director |
1900 SOUTH NORFOLK STREET, SAN MATEO CA 94403 |
| Kanika Soni |
director |
C/O TRIPADVISOR INC., 400 1ST AVENUE, NEEDHAM MA 02494 |
| Henry Tayloe Stansbury |
director |
C/O COUPA SOFTWARE INC., 1855 S. GRANT STREET, SAN MATEO CA 94402 |
| Robert Bernshteyn |
director, officer: Chief Executive Officer |
C/O SUCCESSFACTORS, INC., 1500 FASHION, ISLAND BLVD., SUITE 300, SAN MATEO CA 94404 |
| Anthony D Tiscornia |
officer: Chief Financial Officer |
C/O COUPA SOFTWARE INCORPORATED, 1855 S. GRANT STREET, SAN MATEO CA 94402 |
| Michelle Brennan |
director |
1855 S. GRANT STREET, SAN MATEO CA 94402 |
| Maurizio Baratta |
officer: Chief Accounting Officer |
GUNDERSON DETTMER, 1855 SOUTH GRANT STREET, SAN MATEO CA 94402 |
| Robert Glenn |
officer: EVP of Global Sales |
1855 S. GRANT STREET, SAN MATEO CA 94402 |
| Mark Riggs |
officer: Chief Customer Officer |
1855 S. GRANT STREET, SAN MATEO CA 94402 |
| Todd R Ford |
officer: Chief Financial Officer |
3457 BRYANT STREET, PALO ALTO CA 94306 |
| Campbell Leslie C.g. |
director |
C/O COUPA SOFTWARE INC., 1855 S. GRANT STREET, SAN MATEO CA 94402 |
| Steven M Winter |
officer: Chief Revenue Officer |
C/O COUPA SOFTWARE INC., 1855 S. GRANT STREET, SAN MATEO CA 94402 |
| Ravi Thakur |
officer: Senior Vice Pres., Services |
C/O COUPA SOFTWARE INC., 1855 S. GRANT STREET, SAN MATEO CA 94402 |
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