What is Total System Services 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, Total System Services'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 Total System Services's Probability of Financial Distress (%)
For the Software - Infrastructure subindustry, Total System Services'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.
Total System Services's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, Total System Services's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Total System Services's Probability of Financial Distress (%) falls into.
Total System Services 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).
Total System Services (Total System Services) Business Description
Traded in Other Exchanges
N/A
Address
One TSYS Way, Columbus, GA, USA, 31901-4222
Total System Services Inc based in Columbus, Georgia, provides payment-processing services in the U.S. and abroad. In 2013 TSYS provided processing services for 28% of domestic consumer credit card accounts and 59% of domestic commercial credit card accounts. The company has operating segments in North America Services, International Services, and Merchant Services, plus the newer NetSpend segment, which deals in prepaid debit and payroll cards and arrived via a 2013 acquisition.
Executives
| Kriss Iii Cloninger |
director |
1932 WYNNTON ROAD, COLUMBUS GA 31999 |
| Driver Walter W Jr |
director |
ONE TSYS WAY, COLUMBUS GA 31901 |
| Joia M Johnson |
director |
C/O HANESBRANDS INC., 1000 EAST HANES MILL ROAD, WINSTON SALEM NC 27105 |
| F. Thaddeus Arroyo |
director |
208 S. AKARD, DALLAS TX 75202 |
| Sidney E Harris |
director |
C/O VIRTUS INVESTMENT PARTNERS, INC., ONE FINANCIAL PLAZA, 26TH FL., HARTFORD CT 06103 |
| Mcdaniel Connie D |
director |
C/O VIRTUS INVESTMENT PARTNERS, INC., ONE FINANCIAL PLAZA, 26TH FL., HARTFORD CT 06103 |
| John Thompson Turner |
director |
ONE TSYS WAY, COLUMBUS GA 31901 |
| M Troy Woods |
director, officer: Chairman and CEO |
ONE TSYS WAY, COLUMBUS GA 31901 |
| Paul M Todd |
officer: Sr. EVP and CFO |
ONE TSYS WAY, B-4, COLUMBUS GA 31901 |
| Patricia A Watson |
officer: Senior EVP and CIO |
TOTAL SYSTEM SERVICES, INC., ONE TSYS WAY, COLUMBUS GA 31901 |
| Richard A Smith |
director |
175 PARK AVENUE, MADISON NJ 07940 |
| Griffith G Sanders Iii |
officer: Sr. EVP, Gen. Counsel, Sec. |
ONE TSYS WAY, COLUMBUS GA 31901 |
| Mason H Lampton |
director |
ONE TSYS WAY, C-1, COLUMBUS GA 31901 |
| Philip W Tomlinson |
director |
ONE TSYS WAY, COLUMBUS GA 31901 |
| William M Isaac |
director |
C/O ASSOCIATES FIRST CAPITAL CORP, 250 E CARPENTER FREEWAY, IRVING TX 75062 |
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