What is Datto Holding 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, Datto Holding's Probability of Financial Distress (%) is 0.00%.
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 Datto Holding's Probability of Financial Distress (%)
For the Software - Infrastructure subindustry, Datto Holding'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.
Datto Holding's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, Datto Holding's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Datto Holding's Probability of Financial Distress (%) falls into.
Datto Holding 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% |
| = | 0.00% |
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).
Datto Holding (Datto Holding) Business Description
Traded in Other Exchanges
N/A
Address
101 Merritt 7, Norwalk, CT, USA, 06851
Datto Holding Corp is engaged in providing cloud-based software and technology solutions. Its platform enables partners to manage and grow their businesses serving the small and medium businesses information technology, or SMB IT, market. The company's cloud-based platform offerings include Unified Continuity, Networking and Business Management software solutions.
Executives
| Emily T Epstein |
officer: General Counsel |
101 MERRITT 7, NORWALK CT 06851 |
| John Abbot |
officer: Chief Financial Officer |
|
| Robert Raymond Petrocelli |
officer: Chief Technology Officer |
101 MERRITT 7 NORWALK CT 06851 |
| Christopher Edward Mccloskey |
officer: Chief Customer Officer |
101 MERRITT 7 NORWALK CT 06851 |
| Radhesh Balakrishnan Menon |
officer: Chief Product Officer |
101 MERRITT 7 NORWALK CT 06851 |
| William Severance |
officer: Chief Accounting Officer |
44 E BROADWAY BLVD, SUITE 350, TUCSON AZ 85701 |
| Sanjay Kumar Singh |
officer: Chief Revenue Officer |
101 MERRITT 7 NORWALK CT 06851 |
| Austin Williams Mcchord |
director, 10 percent owner |
101 MERRITT 7 NORWALK CT 06851 |
| Timothy Weller |
director, officer: Chief Executive Officer |
101 MERRITT 7 NORWALK CT 06851 |
| Michael Glenn Fass |
officer: See Remarks |
101 MERRITT 7 NORWALK CT 06851 |
| Adrian T Dillon |
director |
5301 STEVENS CREEK BLVD, MS 1A-LC, SANTA CLARA CA 95051 |
| Jack K Dillon |
director |
101 MERRITT 7 NORWALK CT 06851 |
| Christine E Larsen |
director |
C/O FIRST DATA CORPORATION, FIRST DATA, 225 LIBERTY STREET, NEW YORK NY 10281 |
| Vff Ii Gp (cayman), Ltd. |
10 percent owner |
4 EMBARCADERO CENTER, 20TH FLOOR SAN FRANCISCO CA 94111 |
| Marc Evan Brown |
director |
C/O RAPID7, INC., 100 SUMMER STREET, BOSTON MA 02110 |
Datto Holding (Datto Holding) Headlines
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