What is Backblaze 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, Backblaze's Probability of Financial Distress (%) is 0.21%.
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 Backblaze's Probability of Financial Distress (%)
For the Software - Infrastructure subindustry, Backblaze'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.
Backblaze's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, Backblaze's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Backblaze's Probability of Financial Distress (%) falls into.
Backblaze 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 |
| = | -6.17 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.21% |
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).
Backblaze (Backblaze) Business Description
Traded in Other Exchanges
N/A
Address
500 Ben Franklin Ct, San Mateo, CA, USA, 94401
Backblaze Inc provides cloud storage services. The company offers services such as Backblaze B2 Cloud Storage which enables customers to store data, developers to build applications, and partners to expand their use cases. It is offered as a consumption-based Infrastructure-as-a-Service (IaaS) and serves use cases including backups, multi-cloud, application development, and ransomware protection and Backblaze Computer Backup automatically backs up data from laptops and desktops for businesses and individuals. Geographically, it derives a majority of revenue from the United States.
Executives
| Tina Cessna |
officer: Senior VP, Engineering |
500 BEN FRANKLIN CT., SAN MATEO CA 94401 |
| Francis P Patchel |
officer: Chief Financial Officer |
500 BEN FRANKLIN CT, SAN MATEO CA 94401 |
| Investments Plc Tmt |
10 percent owner |
13 CASTLE STREET, ST. HELIER Y9 JE1 1ES |
| Gleb Budman |
director, 10 percent owner, officer: See Remarks |
500 BEN FRANKLIN CT, SAN MATEO CA 94401 |
| Timothy M Nufire |
director, 10 percent owner, officer: Chief Cloud Officer |
500 BEN FRANKLIN CT, SAN MATEO CA 94401 |
| Brian K Wilson |
director, 10 percent owner, officer: Chief Technology Officer |
500 BEN FRANKLIN CT, SAN MATEO CA 94401 |
| Charles J. Jones |
10 percent owner |
500 BEN FRANKLIN COURT, SAN MATEO CA 94401 |
| Kwok Hang Ng |
10 percent owner |
500 BEN FRANKLIN COURT, SAN MATEO CA 94401 |
| Clal Insurance Enterprises Holdings Ltd |
10 percent owner |
36 RAUL WALENBERG ST, TEL-AVIV L3 6136902 |
| Whetstone Capital Advisors, Llc |
10 percent owner |
2001 SHAWNEE MISSION PARKWAY, SHAWNEE MISSION KS 66205 |
| Jocelyn Carter-miller |
director |
3698 NW 15TH STREET, LAUDERHILL FL 33311 |
| An Evelyn D |
director |
1301 NE 103RD STREET, MIAMI SHORES FL 33138 |
| Earl E Fry |
director |
C/O INFORMATICA CORPORATION, 2100 SEAPORT BLVD., REDWOOD CITY CA 94063 |
| Barbara H Nelson |
director |
C/O QUANTUM CORP, 501 SYCAORE DR, MILPITAS CA 95035 |
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