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Paya Holdings Altman Z-Score

: 2.23 (As of Today)
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Warning Sign:

Altman Z-score of 2.2 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Paya Holdings has a Altman Z-Score of 2.23, indicating it is in Grey Zones. This implies that Paya 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 Paya Holdings's Altman Z-Score or its related term are showing as below:

PAYA' s Altman Z-Score Range Over the Past 10 Years
Min: 1.88   Med: 2.82   Max: 3.21
Current: 2.2

During the past 4 years, Paya Holdings's highest Altman Z-Score was 3.21. The lowest was 1.88. And the median was 2.82.


Paya Holdings Altman Z-Score Historical Data

The historical data trend for Paya 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.

Paya Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21
Altman Z-Score
- - 3.21 1.92

Paya Holdings Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.82 2.87 1.92 1.88 2.08

Competitive Comparison

For the Software - Infrastructure subindustry, Paya 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.

   

Paya Holdings Altman Z-Score Distribution

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

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



Paya 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.

Paya 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*0.2272+1.4*-0.0159+3.3*0.037+0.6*2.4048+1.0*0.4131
=2.23

* 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 Jun. 2022:
Total Assets was $650.2 Mil.
Total Current Assets was $274.8 Mil.
Total Current Liabilities was $127.1 Mil.
Retained Earnings was $-10.3 Mil.
Pre-Tax Income was 2.591 + 3.309 + 2.953 + 2.741 = $11.6 Mil.
Interest Expense was -3.188 + -2.989 + -3.14 + -3.137 = $-12.5 Mil.
Revenue was 72.492 + 65.993 + 67.059 + 63.058 = $268.6 Mil.
Market Cap (Today) was $964.2 Mil.
Total Liabilities was $400.9 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
=(274.782 - 127.085)/650.172
=0.2272

X2=Retained Earnings/Total Assets
=-10.335/650.172
=-0.0159

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(11.594 - -12.454)/650.172
=0.037

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=964.157/400.922
=2.4048

X5=Revenue/Total Assets
=268.602/650.172
=0.4131

The zones of discrimination were as such:

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

Paya Holdings has a Altman Z-Score of 2.23 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.


Paya Holdings  (NAS:PAYA) 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.


Paya Holdings Altman Z-Score Related Terms

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


Paya Holdings Business Description

Paya Holdings logo
Traded in Other Exchanges
Address
303 Perimeter Center N, Suite 600, Atlanta, GA, USA, 30346
Paya Holdings Inc is a provider of integrated payment and frictionless commerce solutions that help customers accept and make payments, expedite receipt of money, and increase operating efficiencies. Its operating segment includes Integrated Solutions and Payment Services. The company generates maximum revenue from the Integrated Solutions segment. Integrated Solutions segment represents the delivery of credit and debit card payment solutions, and to a lesser extent, ACH processing solutions to customers via integrations with software partners across strategic vertical markets. Integrated Solutions partners also include vertical focused front-end Customer Relationship Management software providers as well as back-end Enterprise Resource Planning and accounting solutions.
Executives
Boyda Debora director 303 PERIMETER CENTER NORTH ATLANTA GA 30346
Devarasetty Balaji officer: Chief Information Officer 303 PERIMETER CENTER NORTH ATLANTA GA 30346
Shepard Michele officer: Chief Commercial Officer 303 PERIMETER CIRCLE NORTH ATLANTA GA 30346
Singh Sid director 1550 PEACHTREE STREET NW ATLANTA GA 30309
Chukwu Oni director 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Doster Melinda officer: GENERAL COUNSEL & HHR 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Bell Eric Christopher officer: Chief Accounting Officer 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Renzulli Glenn Joseph officer: Chief Financial Officer 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Scappa Christina officer: See Remarks. 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Winfield Darrell Gerard officer: Chief Information Officer 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Weiner Benjamin Nicolas officer: See Remarks. 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Trala Anna May Louise director 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Gtcr Partners Xi/b Lp director, 10 percent owner 300 NORTH LASALLE STREET, SUITE 5600 CHICAGO IL 60654
Gtcr Investment Xi Llc director, 10 percent owner 300 NORTH LASALLE STREET, SUITE 5600 CHICAGO IL 60654
Gtcr Partners Xi/a&c Lp director, 10 percent owner 300 NORTH LASALLE STREET, SUITE 5600 CHICAGO IL 60654

Paya Holdings Headlines

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