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QNST (QuinStreet) Probability of Financial Distress (%) : 0.04% (As of Mar. 15, 2025)


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What is QuinStreet 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, QuinStreet's Probability of Financial Distress (%) is 0.04%.

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 QuinStreet's Probability of Financial Distress (%)

For the Advertising Agencies subindustry, QuinStreet'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.


QuinStreet's Probability of Financial Distress (%) Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, QuinStreet's Probability of Financial Distress (%) distribution charts can be found below:

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



QuinStreet 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
=-7.76

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

PFD=1/(1 + e^(-LPFD))*100%
=0.04%

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).


QuinStreet  (NAS:QNST) 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.


QuinStreet Probability of Financial Distress (%) Related Terms

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QuinStreet Business Description

Traded in Other Exchanges
Address
950 Tower Lane, 12th Floor, Foster City, CA, USA, 94404
QuinStreet Inc focuses on marketplaces and technologies for the financial services and home services industries. It delivers measurable and cost-effective marketing results to its clients, in the form of qualified inquiries such as clicks, leads, calls, applications, or customers. It generates revenue by delivering measurable online marketing results to the clients. Its products and services are Customer Acquisition, QuinStreet Rating Platform (QRP), and CloudControlMedia.
Executives
Gregory Wong officer: CFO 950 TOWER LANE, 6TH FLOOR, FOSTER CITY CA 94404
Douglas Valenti director, 10 percent owner, officer: Chief Executive Officer C/O QUINSTREET, INC., 1051 EAST HILLSDALE BLVD., FOSTER CITY CA 94404
Stuart Huizinga director 440 EAST MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Andrew T Sheehan director 755 PAGE MILL ROAD, SUITE A-200, PALO ALTO CA 94304-1005
Matthew Glickman director 159 MELVILLE AVENUE, PALO ALTO CA 94301
David J Pauldine director 300 SIXTH AVE, 8TH FLOOR, PITTSBURGH PA 75222
Hillary B Smith director C/O YEXT, INC, 61 NINTH AVENUE, NEW YORK NY 10011
Asmau Ahmed director 315 RIVERSIDE DRIVE 1B, NEW YORK NY 10025
James R. Simons director C/O SPLIT ROCK PARTNERS, 10400 VIKING DRIVE, SUITE 250, EDEN PRAIRIE MN 55344
Robin Josephs director
Anna Liao Fieler director 2036 STERLING AVE, MENLO PARK CA 94025
Gregory P Sands director 755 PAGE MILL ROAD, SUITE A-200, PALO ALTO CA 94304-1005
John G Mcdonald director 601 UNION STREET, SUITE 3100, SEATTLE WA 98101-1374
Nina Bhanap officer: Chief Technology Officer C/O QUINSTREET, INC., 1051 EAST HILLSDALE BLVD., FOSTER CITY CA 94404
Martin J Collins officer: SVP & General Counsel 4000 NORTH FIRST STREET, SAN JOSE CA 95134