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Oblong (Oblong) Probability of Financial Distress (%) : 3.46% (As of Apr. 29, 2024)


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What is Oblong 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, Oblong's Probability of Financial Distress (%) is 3.46%.

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 Oblong's Probability of Financial Distress (%)

For the Software - Application subindustry, Oblong'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.


Oblong's Probability of Financial Distress (%) Distribution in the Software Industry

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

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



Oblong 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
=-3.33

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

PFD=1/(1 + e^(-LPFD))*100%
=3.46%

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).


Oblong  (NAS:OBLG) 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.


Oblong Probability of Financial Distress (%) Related Terms

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Oblong (Oblong) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Oblong Inc (NAS:OBLG) » Definitions » Probability of Financial Distress (%)
Traded in Other Exchanges
N/A
Address
25587 Conifer Road, Suite 105-231, Conifer, CO, USA, 80433
Oblong Inc delivers visual solutions for collaboration and computing environments. The company's flagship product Mezzanine is the technology platform that defines computing: simultaneous multi-user, multi-screen, multi-device, and multi-location for dynamic and immersive visual collaboration. Mezzanine transforms routine meetings and workflows into agile, engaging experiences by making data visible and accessible in a collaborative setting. Mezzanine enables multiple, concurrent pieces of content to be shared, manipulated, created, and captured across distance. It serves various industries including aerospace, consulting, executive search, broadcast media, technology, financial services, education, healthcare, real estate, retail, construction, hospitality, and government, among others.
Executives
Jason T Adelman director 900 PARK AVENUE, APARTMENT 15A, NEW YORK NY 10021
Deborah Jean Meredith director 460 VAN BUREN STREET, LOS ALTOS CA 94022
Robert Weinstein director 3960 HOWARD HUGHES PARKWAY, SUITE 500, LAS VEGAS NV 89169
Jonathan Schechter director C/O ATRINSIC, INC. 1 GRAND CENTRAL PLACE, SUITE 2319, NEW YORK NY 10165
Stepstone Group Lp 10 percent owner 4225 EXECUTIVE SQUARE, SUITE 1600, LA JOLLA CA 92037
Matthew Yavner Blumberg director 26 DORIS DRIVE, SCARSDALE NY 10583
Peter Joseph Hawkes officer: SVP Design, Product, & Engnrg 650 SANTA ROSA AVENUE, BERKLEY CA 94707
Bradley A Feld 10 percent owner C/O FOUNDRY GROUP, 645 WALNUT ST., BOULDER CO 80302
Ryan A Mcintyre 10 percent owner
Foundry Select Fund Gp, Llc 10 percent owner 1050 WALNUT STREET, SUITE 210, BOULDER CO 80302
Foundry Group Select Fund, L.p. 10 percent owner 1050 WALNUT STREET, SUITE 210, BOULDER CO 80302
Foundry Venture Capital 2007, L.p. 10 percent owner 1050 WALNUT STREET, SUITE 210, BOULDER CO 80302
Foundry Venture 2007, Llc 10 percent owner 1050 WALNUT STREET, SUITE 210, BOULDER CO 80302
Seth Levine 10 percent owner 1050 WALNUT STREET, SUITE 210, BOULDER CO 80302
Greenspring Opportunities Iv, L.p. 10 percent owner 100 PAINTERS MILL ROAD, OWINGS MILLS MD 2111

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