GURUFOCUS.COM » STOCK LIST » Technology » Software » Finjan Holdings Inc (NAS:FNJN) » Definitions » Altman Z-Score

Finjan Holdings (Finjan Holdings) Altman Z-Score : 2.41 (As of May. 13, 2024)


View and export this data going back to 2007. Start your Free Trial

What is Finjan Holdings Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Finjan Holdings has a Altman Z-Score of 2.41, indicating it is in Grey Zones. This implies that Finjan Holdings is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Finjan Holdings's Altman Z-Score or its related term are showing as below:


Finjan Holdings Altman Z-Score Historical Data

The historical data trend for Finjan Holdings's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Finjan Holdings Altman Z-Score Chart

Finjan Holdings Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.74 4.47 5.17 8.40 2.81

Finjan Holdings Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.88 1.97 2.19 2.81 1.55

Competitive Comparison of Finjan Holdings's Altman Z-Score

For the Software - Infrastructure subindustry, Finjan Holdings's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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.


Finjan Holdings's Altman Z-Score Distribution in the Software Industry

For the Software industry and Technology sector, Finjan Holdings's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Finjan Holdings's Altman Z-Score falls into.



Finjan Holdings Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Finjan Holdings's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.6295+1.4*0.1191+3.3*-0.3957+0.6*4.0354+1.0*0.3695
=2.41

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2020:
Total Assets was $45.88 Mil.
Total Current Assets was $36.02 Mil.
Total Current Liabilities was $7.15 Mil.
Retained Earnings was $5.46 Mil.
Pre-Tax Income was -4.148 + -8.678 + -2.965 + -2.73 = $-18.52 Mil.
Interest Expense was -0.077 + -0.087 + -0.098 + -0.108 = $-0.37 Mil.
Revenue was 3.8 + 0 + 5.9 + 7.25 = $16.95 Mil.
Market Cap (Today) was $42.86 Mil.
Total Liabilities was $10.62 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(36.023 - 7.145)/45.875
=0.6295

X2=Retained Earnings/Total Assets
=5.463/45.875
=0.1191

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-18.521 - -0.37)/45.875
=-0.3957

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=42.860/10.621
=4.0354

X5=Revenue/Total Assets
=16.95/45.875
=0.3695

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Finjan Holdings has a Altman Z-Score of 2.41 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Finjan Holdings  (NAS:FNJN) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Finjan Holdings Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Finjan Holdings's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Finjan Holdings (Finjan Holdings) Business Description

Traded in Other Exchanges
N/A
Address
2000 University Avenue, Suite 600, East Palo Alto, CA, USA, 94303
Finjan Holdings Inc is a cybersecurity company. The company operates business lines such as intellectual property licensing and enforcement, mobile security application development, and investing in cybersecurity technologies and intellectual property. It develops mobile applications to defend against spies, phishing, and malware. It mainly focuses on three business lines, intellectual property licensing and enforcement, developing mobile security applications and investing in cybersecurity technologies and intellectual property. The company generates a majority of its revenue from the cybersecurity business.
Executives
Eric Benhamou director 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
Kellogg Harry W Jr director 3005 TASMAN DRIVE, SANTA CLARA CA 95054
Michael Christopher Southworth director 10912 SHALLOW CREEK DRIVE, GREAT FALLS VA 22066
Harbourvest Partners Llc 10 percent owner ONE FINANCIAL CENTER, 43RD FLOOR, BOSTON MA 02111
Gary B Moore director 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Greene John Winand Jr director 477 MADISON AVENUE, 8TH FLOOR, NEW YORK NY 10022
Jason Dillow 10 percent owner C/O HALCYON CAPITAL MANAGEMENT, LLC, 477 MADISON AVE., 8TH FLOOR, NEW YORK NY 10022
John M Bader 10 percent owner C/O HALCYON CAPITAL MANAGEMENT, LLC, 477 MADISON AVE., 8TH FLOOR, NEW YORK NY 10022
Michael A Eisenberg 10 percent owner C/O SHOPPING.COM, 8000 MARINA BLVD. 5TH FLOOR, BRISBANE CA 94005
Edward J Gildea director C/O CONVERTED ORGANICS INC., 7A COMMERCIAL WHARF WEST, BOSTON MA 02110
John P Devillars director 50 COMMONWEALTH AVENUE, #304, BOSTON MA 02166
David R Allen officer: Chief Financial Officer C/O CONVERTED ORGANICS INC., 7A COMMERCIAL WHARF WEST, BOSTON MA 02110
Paulson Capital Corp 10 percent owner, other: See Footnote (1) 222 THIRD STREET, SUITE 2241, CAMBRIDGE MA 02142
Jacqueline M Paulson 10 percent owner, other: See Footnote (1) 811 SW NAITO PARKWAY, SUITE 200, PORTLAND OR 97204
Paulson Chester L F 10 percent owner, other: See Footnote (1) 811 SW NAITO PARKWAY, SUITE 200, PORTLAND OR 97204