What is TSS 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, TSS'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 TSS's Probability of Financial Distress (%)
For the Information Technology Services subindustry, TSS'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.
TSS's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, TSS's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where TSS's Probability of Financial Distress (%) falls into.
TSS 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 |
| = | -8.46 |
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).
TSS (TSSI) Business Description
Traded in Other Exchanges
N/A
Address
110 East Old Settlers Road, Round Rock, TX, USA, 78664
TSS Inc provides various services for planning, design, development, and maintenance of mission-critical facilities and information infrastructure, as well as integration services. Its services consist of technology consulting, design and engineering, project management, systems integration, systems installation, and facilities management. Its Facilities unit which is involved in the design, project management and maintenance of data center and mission-critical business operations, and Systems Integration unit that integrates IT equipment for Original Equipment Manufacturer vendors and customers to use inside data center environments, including modular data centers. The activities are organized into two segments: facilities, and systems integration. It generates revenue from United States.
Executives
| Darryll E Dewan |
director, officer: President and CEO |
4400 VIA ESPERANZA, SANTA BARBARA CA 93110 |
| Richard M. Metzler |
director |
1805 WEST AVENUE, AUSTIN TX 78701 |
| Matt Crichton |
officer: Sr. V.P., Business Development |
101 LOCHINVAR COURT, CARY NC 27511 |
| Kieran Brennan |
officer: Sr. V.P., Sales & Marketing |
5131 BRIARGROVE LANE, DALLAS TX 75287 |
| Gerard J Gallagher |
director, 10 percent owner, officer: President and COO |
7226 LEE DEFOREST DRIVE, SUITE 104, COLUMBIA MD 21046 |
| Glen Ikeda |
10 percent owner |
P.O. BOX 3306, AUBURN CA 95604 |
| Peter H Woodward |
director |
30 WEST 63RD STREET, SUITE 18G, NEW YORK NY 10023 |
| John K Penver |
officer: Interim CFO |
3709 HUMBLE COVE, AUSTIN TX 78730 |
| Martin T. Olsen |
officer: Exec. VP, Sales & Marketing |
2128 W. BRAKER LANE BK12, AUSTIN TX 78758 |
| Thomas P Rosato |
director, 10 percent owner, officer: Chief Executive Officer |
7226 LEE DEFOREST DRIVE, SUITE 104, COLUMBIA MD 21046 |
| Maura Mcnerney |
officer: Chief Financial Officer |
7226 LEE DEFOREST DRIVE, SUITE 104, COLUMBIA MD 21046 |
| Ken Schwarz |
officer: Chief Financial Officer |
14901 BOGLE DRIVE, SUITE 300, CHANTILLY VA 20151 |
| Daniel J Phelps |
director |
1001 O'BRIEN DRIVE, MENLO PARK CA 94025 |
| Anthony Angelini |
director, officer: Chief Executive Officer |
|
| Tarsier Nanocap Value Fund, Lp |
10 percent owner, other: see footnote #1 |
C/O HUMMINGBIRD MANAGEMENT, LLC, 145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022 |
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