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Flywire (Flywire) Altman Z-Score : 6.04 (As of Apr. 26, 2024)


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What is Flywire Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 6.1 is strong.

Flywire has a Altman Z-Score of 6.04, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Flywire's Altman Z-Score or its related term are showing as below:

FLYW' s Altman Z-Score Range Over the Past 10 Years
Min: 6.1   Med: 8.74   Max: 15.95
Current: 6.1

During the past 5 years, Flywire's highest Altman Z-Score was 15.95. The lowest was 6.10. And the median was 8.74.


Flywire Altman Z-Score Historical Data

The historical data trend for Flywire's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Flywire Altman Z-Score Chart

Flywire Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
- - 15.95 8.74 6.54

Flywire Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.74 15.41 14.66 12.00 6.54

Competitive Comparison of Flywire's Altman Z-Score

For the Software - Infrastructure subindustry, Flywire's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution in the Software Industry

For the Software industry and Technology sector, Flywire's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Flywire's Altman Z-Score falls into.



Flywire Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Flywire's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.5019+1.4*-0.1609+3.3*-0.0037+0.6*8.8404+1.0*0.3733
=6.04

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Dec. 2023:
Total Assets was $1,079.7 Mil.
Total Current Assets was $815.7 Mil.
Total Current Liabilities was $273.8 Mil.
Retained Earnings was $-173.8 Mil.
Pre-Tax Income was 3.225 + 11.395 + -15.706 + -3.266 = $-4.4 Mil.
Interest Expense was -0.092 + -0.099 + -0.078 + -0.103 = $-0.4 Mil.
Revenue was 100.545 + 123.323 + 84.869 + 94.357 = $403.1 Mil.
Market Cap (Today) was $2,595.7 Mil.
Total Liabilities was $293.6 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(815.684 - 273.792)/1079.731
=0.5019

X2=Retained Earnings/Total Assets
=-173.77/1079.731
=-0.1609

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-4.352 - -0.372)/1079.731
=-0.0037

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=2595.672/293.614
=8.8404

X5=Revenue/Total Assets
=403.094/1079.731
=0.3733

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Flywire has a Altman Z-Score of 6.04 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Flywire  (NAS:FLYW) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Flywire Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Flywire's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


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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