Within this report published monthly, highlights of corporate creditworthiness information for over 4000 public companies are provided. In today’s financial climate, it is more important than ever to be able to accurately assess corporate creditworthiness. One measure that has been in use since 1968 is Altman’s Z Score. The Z Score predicts the likelihood of bankruptcy within two years with greater than 70% accuracy. The lower the score, the higher the risk of bankruptcy. Z Scores above 3 indicate bankruptcy is not likely while a score below 1.8 indicates it is likely.
In addition to the Z Score, Credit Risk Watch lists other financial ratios that measure factors which contribute to creditworthiness such as liquidity, capital productivity, return on assets, interest coverage, rate of cash generation, capital adequacy and excess cash flow. Each monthly edition of the Credit Risk Watch datafiles includes current values of these measures for each of over 4000 public companies and the industries they represent based on the latest published quarterly financial statements as well as a projection for each of these measures four fiscal quarters into the future.
The PDF report highlights the least creditworthy firms based on future Z Scores, the most eroding credits based on expected change in Z Scores, the most underperforming company in each industry group based on difference of Z Score from the group average. Every month an updated report and complete datafiles are provided.
Credit Risk Watch provides an invaluable tool to guide business executives to judge creditworthiness of potential partners, suppliers or customers. It helps credit managers evaluate credit risk and exposure. The report and datafiles provide valuable insights to financial analysts to aid in identifying and managing investment opportunities.
The two database files are in Excel format, one containing information by company and the other information by industry.