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Professional Diversity Network (Professional Diversity Network) Altman Z-Score : -20.28 (As of Apr. 25, 2024)


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What is Professional Diversity Network 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.

Warning Sign:

Altman Z-score of -20.33 is in distress zone. This implies bankruptcy possibility in the next two years.

Professional Diversity Network has a Altman Z-Score of -20.28, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

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 Professional Diversity Network's Altman Z-Score or its related term are showing as below:

IPDN' s Altman Z-Score Range Over the Past 10 Years
Min: -29.52   Med: -13.09   Max: 1.44
Current: -20.33

During the past 13 years, Professional Diversity Network's highest Altman Z-Score was 1.44. The lowest was -29.52. And the median was -13.09.


Professional Diversity Network Altman Z-Score Historical Data

The historical data trend for Professional Diversity Network'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.

Professional Diversity Network Altman Z-Score Chart

Professional Diversity Network Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -18.73 -12.52 -13.65 -17.71 -19.75

Professional Diversity Network Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -17.71 -15.25 -11.96 -19.53 -19.75

Competitive Comparison of Professional Diversity Network's Altman Z-Score

For the Staffing & Employment Services subindustry, Professional Diversity Network'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.


Professional Diversity Network's Altman Z-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Professional Diversity Network's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Professional Diversity Network's Altman Z-Score falls into.



Professional Diversity Network 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.

Professional Diversity Network'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*-0.175+1.4*-15.7899+3.3*-0.7152+0.6*5.3023+1.0*1.2167
=-20.28

* 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 Dec. 2023:
Total Assets was $6.33 Mil.
Total Current Assets was $2.37 Mil.
Total Current Liabilities was $3.48 Mil.
Retained Earnings was $-99.90 Mil.
Pre-Tax Income was -0.647 + -1.327 + -1.431 + -1.12 = $-4.53 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.00 Mil.
Revenue was 1.894 + 2.008 + 1.841 + 1.955 = $7.70 Mil.
Market Cap (Today) was $19.93 Mil.
Total Liabilities was $3.76 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
=(2.368 - 3.475)/6.327
=-0.175

X2=Retained Earnings/Total Assets
=-99.903/6.327
=-15.7899

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-4.525 - 0)/6.327
=-0.7152

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=19.926/3.758
=5.3023

X5=Revenue/Total Assets
=7.698/6.327
=1.2167

The zones of discrimination were as such:

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

Professional Diversity Network has a Altman Z-Score of -20.28 indicating it is in Distress Zones.

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


Professional Diversity Network  (NAS:IPDN) 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.


Professional Diversity Network Altman Z-Score Related Terms

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Professional Diversity Network (Professional Diversity Network) Business Description

Traded in Other Exchanges
N/A
Address
55 East Monroe Street, Suite 2120, Chicago, IL, USA, 60603
Professional Diversity Network Inc is engaged in providing access to networking, training, educational and employment services to its registered users. It has three operating segments: the Professional Diversity Network (PDN) segment, which includes online professional networking communities with career resources for diverse cultural groups and employers looking to hire members; and the National Association of Professional Women (NAPW) segment, which is a women-only professional networking organization, the RemoteMore segment. The company generates revenues from paid membership subscriptions and related services, recruitment services, product sales, education & training, and consumer advertising & consumer marketing solutions.
Executives
Yu-jin Chou officer: Secretary 55 E MONROE STREET, SUITE2120, CHICAGO IL 60603
Hongjun Chen 10 percent owner 55 E MONROE STREET, STE 2250, CHICAGO IL 60603
Larry S Aichler officer: Interim CFO 55 E MONROE ST, STE 2120, CHICAGO IL 60603
Christopher Renn director 55 E MONROE ST, SUITE# 2120, CHICAGO IL 60603
Esquivel Russell J Jr. officer: SVP 26844 N 73RD DR, PEORIA AZ 85383
Megan Elizabeth Bozzuto officer: SVP 162 EAST ST, SHARON MA 02067
Grace Reyes director 1191 SOLANO AVENUE #6315, ALBANY CA 94706
Charles Martin Obrien officer: Interim CFO 1131 WARWICK CIRCLE N., HOFFMAN ESTATES IL 60169
Malven Group Ltd 10 percent owner UNIT A, 21/F., CMA BUILDING, 64 CONNAUGHT ROAD CENTRAL, CENTRAL K3 00000
Shea Courtney C. director 1555 N. ASTOR STREET, APARTMENT 9W, CHICAGO IL 60610
Maoji Wang director 13-1-902, BAIWANGJIAYUAN EAST SECTOR, DONGBEIWANG, HAIDIAN DISTRICT, BEIJING F4 000000
Lida Fang director 77 N 3RD RING MIDDLE RD, 24TH FLOOR, ROOM 1105, BEIJING F4 100080
Haibin Gong director 408 NO. 18 BLDG XILI MAJIABAO YANGQIAO, FENGTAI DISTRICT BEIJING CITY F4 100039
Michael D Belsky director 213 LEONARD WOOD NORTH, UNIT 101, HIGHLAND PARK IL 60035
James R Kirsch director, 10 percent owner, officer: Chief Executive Officer 801 W. ADAMS STREET SUITE 600, CHICAGO IL 60607