What is Jack Henry & Associates 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, Jack Henry & Associates's Probability of Financial Distress (%) is 0.02%.
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 Jack Henry & Associates's Probability of Financial Distress (%)
For the Information Technology Services subindustry, Jack Henry & Associates'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.
Jack Henry & Associates's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, Jack Henry & Associates's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Jack Henry & Associates's Probability of Financial Distress (%) falls into.
Jack Henry & Associates 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 |
| = | -8.39 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*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
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
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).
Jack Henry & Associates (Jack Henry & Associates) Business Description
Traded in Other Exchanges
Address
663 Highway 60, P.O. Box 807, Monett, MO, USA, 65708
Jack Henry is a leading provider of core processing and complementary services, such as electronic funds transfer, payment processing, and loan processing for U.S. banks and credit unions, with a focus on small and midsize banks. Jack Henry serves almost 1,000 banks and over 700 credit unions.
Executives
| Stacey E. Zengel |
officer: Vice President |
PO BOX 807, 663 HWY 60, MONETT MO 65708 |
| Thomas A Wimsett |
director |
|
| Laura G. Kelly |
director |
PO BOX 807, 663 HIGHWAY 60, MONETT MO 65708 |
| David B Foss |
officer: PRESIDENT |
PO BOX 807, 663 HWY 60, MONETT MO 65708 |
| Mimi Carsley |
officer: CFO and Treasurer |
6333 N. STATE HWY 161, 6TH FLOOR, IRVING TX 75038 |
| Renee Ann Swearingen |
officer: Sr VP & Chief Accounting Offic |
PO BOX 807, 663 HWY 60, MONETT MO 65708 |
| Gregory R. Adelson |
officer: Vice President |
PO BOX 807, 663 HWY 60, MONETT MO 65708 |
| Wilson Thomas Hampton Jr. |
director |
PO BOX 807, 663 HWY 60, MONETT MO 65708 |
| Curtis A Campbell |
director |
6333 N. STATE HWY 161, 6TH FLOOR, IRVING TX 75038 |
| John F Prim |
officer: PRESIDENT |
PO BOX 807-663 HWY 60, MONETT MO 65708 |
| Steven W. Tomson |
officer: VICE PRESIDENT |
PO BOX 807, 663 HWY 60, MONETT MO 65708 |
| Kevin D Williams |
officer: CHIEF FINANCIAL OFFICER |
PO BOX 807-663 HWY 60, MONETT MO 65708 |
| Mark S Forbis |
officer: IMAGE DEPARTMENT MANAGER |
663 HWY 60, PO BOX 807, MONETT MO 65708 |
| Ronald L. Moses |
officer: Vice President |
PO BOX 807, 663 HWY 60, MONETT MO 65708 |
| Wesley A Brown |
director |
PO BOX 807, 663 HWY 60, MONETT MO 65708 |
Jack Henry & Associates (Jack Henry & Associates) Headlines
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