What is Hudson Global 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, Hudson Global's Probability of Financial Distress (%) is 0.01%.
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 Hudson Global's Probability of Financial Distress (%)
For the Staffing & Employment Services subindustry, Hudson Global'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.
Hudson Global's Probability of Financial Distress (%) Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Hudson Global's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Hudson Global's Probability of Financial Distress (%) falls into.
Hudson Global 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 |
| = | -8.97 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.01% |
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).
Hudson Global (Hudson Global) Business Description
Traded in Other Exchanges
Address
53 Forest Avenue, Suite 102, Old Greenwich, CT, USA, 06870
Hudson Global Inc provides specialized recruitment and related talent solutions. Its core services include Permanent recruitment, Contracting, Recruitment process outsourcing (RPO) and Talent management solutions. Its Permanent recruitment services leverage the company's consultants. In contracting services, it offers project management, interim management, and professional contract staffing services. RPO services deliver permanent and contracting outsourced recruitment solutions to various companies whereas, Talent management solutions feature services like talent assessment, interview training, executive coaching, employee development and outplacement.
Executives
| Robert G. Pearse |
director |
100 CANAL POINTE BLVD., SUITE 108, PRINCETON NJ 08540 |
| Jeffrey E. Eberwein |
director |
53 FOREST AVENUE, SUITE 101, OLD GREENWICH CT 06870 |
| Matthew K Diamond |
officer: VP of Finance |
53 FOREST AVENUE, OLD GREENWICH CT 06870 |
| Hudson Global, Inc. |
officer: CFO and CAO |
53 FOREST AVENUE, OLD GREENWICH CT 06870 |
| Patrick M. Lyons |
officer: CFO and CAO |
HUDSON GLOBAL, INC., 1325 AVENUE OF THE AMERICAS, 12TH FLOOR, NEW YORK NY 10019 |
| Nelson Connia M |
director |
C/O HUDSON GLOBAL, INC., 53 FOREST AVENUE, OLD GREENWICH CT 06870 |
| Mimi K Drake |
director |
C/O HUDSON GLOBAL, INC., 53 FOREST AVENUE, OLD GREENWICH CT 06870 |
| Alan Lee Bazaar |
director |
9 BEDFORD ROAD, KATONAH NY 10536 |
| Coleman Richard Kenneth Jr. |
director |
53 FOREST AVE, SUITE 101, OLD GREENWICH CT 06870 |
| Ian V. Nash |
director |
HUDSON GLOBAL, INC., 1325 AVENUE OF THE AMERICAS, 12TH FLOOR, NEW YORK NY 10019 |
| Sagard Capital Partners, L.p. |
10 percent owner |
280 PARK AVENUE, 3RD FLOOR WEST, NEW YORK NY 10017 |
| David F. Kirby |
officer: VP, Finance and Treasury |
HUDSON GLOBAL, INC., 1325 AVENUE OF THE AMERICAS, 12TH FLOOR, NEW YORK NY 10019 |
| Arthur Curcuru |
officer: Senior VP, Finance |
HUDSON GLOBAL, INC., 560 LEXINGTON AVENUE, NEW YORK NY 10022 |
| Vi Capital Fund, Lp |
other: Member of 10% owner group |
PO BOX 402, NEWMAN LAKE WA 99025 |
| David William Pointer |
other: Member of 10% owner group |
PO BOX 402, NEWMAN LAKE WA 99025 |
Hudson Global (Hudson Global) Headlines
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