What is root9B Holdings 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, root9B Holdings's Probability of Financial Distress (%) is 0.00%.
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 root9B Holdings's Probability of Financial Distress (%)
For the Information Technology Services subindustry, root9B Holdings'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.
root9B Holdings's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, root9B Holdings's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where root9B Holdings's Probability of Financial Distress (%) falls into.
root9B Holdings 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 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
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).
root9B Holdings (root9B Holdings) Business Description
Traded in Other Exchanges
N/A
Address
102 N Cascade Avenue, Suite 220, Colorado Springs, CO, USA, 28211
root9B Holdings Inc is a provider of cybersecurity and business advisory services in regulatory risk mitigation. It designs and provides cybersecurity operations and solutions, risk mitigation services, compilation with complex regulations, and leverageable and integrated technology. The company provides its services through Cyber Solutions and Business Advisory Solutions segments. Cyber Solutions segment provides cyber operations assessments, analysis, and testing, to cyber training, forensics, exploitation, and strategic defense planning. It earns all its revenue from both of its segments.
Executives
| Grano Joseph J Jr |
director, officer: CEO and Chairman |
C/O MEDGENICS, INC., 435 DEVON PARK DRIVE BLDG 700, WAYNE PA 19087 |
| William Hoke |
officer: CFO |
102 N. CASCADE AVENUE, SUITE 220, COLORADO SPRINGS CO 80919 |
| Gregory C Morris |
director |
421 CRANBORNE CHASE, FORT MILL SC 29708 |
| Seymour Siegel |
director |
91 CABOT COURT, HAUPPAUGE NY 11788 |
| Isaac Blech |
director, 10 percent owner |
C/O INSPIREMD, INC., 321 COLUMBUS AVENUE, BOSTON MA 02116 |
| Cary Sucoff |
director |
1612 EAST CAPE CORAL PKWY, C/O LEGACY EDUCATION ALLIANCE, INC., CAPE CORAL FL 33904 |
| Wesley Clark |
director |
C/O ARGYLE SECURITY ACQUISITION CORP., 200 CONCORD PLAZA, SUITE 700, SAN ANTONIO TX 78216 |
| River Charitable Remainder Unitrust F/b/o Isaac Blech |
10 percent owner |
75 ROCKEFELLER PLAZA, 29TH FLOOR, NEW YORK NY 10019 |
| Miriam Blech |
10 percent owner |
75 ROCKEFELLER PLAZA, 29TH FLOOR, NEW YORK NY 10019 |
| Joseph C. Grano |
10 percent owner |
1185 AVENUE OF THE AMERICAS, SUITE 1750, NEW YORK NY 10036 |
| James M Orphanides |
10 percent owner |
633 THIRD AVENUE, NEW YORK NY 10017 |
| Mark S Elliott |
director, 10 percent owner, officer: President |
C/O LEVEL BRANDS, INC., 4521 SHARON ROAD, SUITE 450, CHARLOTTE NC 28211 |
| Richard C Siskey |
10 percent owner |
3545 SHARON ROAD, CHARLOTTE NC 28211 |
| Robert L Frome |
director, 10 percent owner, officer: President |
3220 TILLMAN DRIVE SUITE 300, BENSALEM PA 19020 |
root9B Holdings (root9B Holdings) Headlines
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