What is Flywire 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, Flywire's Probability of Financial Distress (%) is 0.04%.
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 Flywire's Probability of Financial Distress (%)
For the Software - Infrastructure subindustry, Flywire'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.
Flywire's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, Flywire's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Flywire's Probability of Financial Distress (%) falls into.
Flywire 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 |
| = | -7.92 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.04% |
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).
Flywire (Flywire) Business Description
Traded in Other Exchanges
Address
141 Tremont Street, Suite 10, Boston, MA, USA, 02111
Flywire Corp provides a secure global payments platform, offering its clients an innovative and streamlined process to receive reconciled domestic and international payments in a more cost-effective and efficient manner. The company's solutions are built on three core elements namely a payments platform; a proprietary global payment network and vertical-specific software backed by its deep industry expertise. Geographically, the majority of revenue is from the Americas.
Executives
| Michael G Ellis |
officer: Chief Financial Officer |
C/O FLYWIRE CORPORATION, 141 TREMONT STREET, SUITE 10, BOSTON MA 02111 |
| Peter Butterfield |
officer: General Counsel and CCO |
C/O FLYWIRE CORPORATION, 141 TREMONT STREET, SUITE 10, BOSTON MA 02111 |
| Rob Orgel |
officer: President and COO |
C/O FLYWIRE CORPORATION, 141 TREMONT STREET, SUITE 10, BOSTON MA 02111 |
| Michael Massaro |
director, officer: Chief Executive Officer |
C/O FLYWIRE CORPORATION, 141 TREMONT STREET, SUITE 10, BOSTON MA 02111 |
| David R. King |
officer: Chief Technology Officer |
C/O FLYWIRE CORPORATION, 141 TREMONT STREET, SUITE 10, BOSTON MA 02111 |
| Gretchen Howard |
director |
707 MENLO AVENUE, SUITE 110, MENLO PARK CA 94025 |
| Matthew C Harris |
director, 10 percent owner |
1 BANK STREET, 2ND FLOOR, WILLIAMSTOWN MA 01267 |
| Edwin J Santos |
director |
234 MOURNING DOVE DRIVE, SAUNDERSTOWN RI 02874 |
| Bain Capital Venture Investors, Llc |
10 percent owner |
200 CLARENDON STREET, BOSTON MA 02116 |
| Bain Capital Venture Coinvestment Fund Ii, L.p. |
10 percent owner |
200 CLARENDON STREET, BOSTON MA 02116 |
| Enrique T Salem |
10 percent owner |
SYMANTEC CORPORATION, 20330 STEVENS CREEK BLVD., CUPERTINO CA 95014 |
| Ajay Agarwal |
10 percent owner |
C/O BAIN CAPITAL VENTURE INVESTORS, LLC, 200 CLARENDON STREET, BOSTON MA 02116 |
| Alex Finkelstein |
director, 10 percent owner |
C/O WAYFAIR INC, 4 COPLEY PLACE, 7TH FLOOR, BOSTON MA 02116 |
| Phillip John Riese |
director |
2851 WEST KATHLEEN ROAD, PHOENIX AZ 85053 |
| Diane E Offereins |
director |
2500 LAKE COOK ROAD, RIVERWOODS IL 60015 |
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