Global Eagle Entertainment Inc.

Net Loss: Mile-high WiFi provider Global Eagle Entertainment Inc. has gone bankrupt, which is something our FRISK® score predicted could happen.

The Los Angeles-based company filed for Chapter 11 protection on July 22. Notice the trend the 96%-accurate FRISK® score revealed for Global Eagle Entertainment since the start of 2019:

Global Eagle Entertainment Inc. FRISK® score

The FRISK® score is a proprietary score indicating a company's level of financial stress, based on the probability of bankruptcy over a 12-month horizon. It incorporates a number of critical risk indicators, including:

  1. crowdsourced click patterns of credit managers and other subscribers,
  2. stock market capitalization and volatility,
  3. financial ratios, including those used in the Altman Z”-Score model, and
  4. Moody’s, Fitch and DBRS Morningstar bond agency ratings

The FRISK® score is calculated daily with the most recent information in the CreditRiskMonitor® database.

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Our FRISK® score model incorporates four powerful risk inputs:

  • “Merton”-type model of stock market capitalization and volatility
  • Financial ratios, including those used in the Altman Z”-Score Model
  • Bond agency ratings from Fitch, Moody's, and DBRS Morningstar
  • Website click pattern data from CreditRiskMonitor® subscribers, representing key credit decision-makers at more than 35% of current Fortune 1000 companies plus thousands of other large companies worldwide

Since the start of 2017, the FRISK® score’s rate of success in capturing public company bankruptcy is 96%: 235 identified out of 243 bankruptcies. In any given year, you can count on one hand the times we miss – and in those outlier cases, the circumstances deal with unusual, unforeseen events such as natural disasters and CEO fraud.

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About Bankruptcy Case Studies

CreditRiskMonitor® Bankruptcy Case Studies provide post-filing analyses of public company bankruptcies. Our case studies educate subscribers about methods they can apply to assess bankruptcy risk using our proprietary FRISK® score, robust financial database, and timely news alerts.

In nearly every case, a low FRISK® score gave our subscribers early warning of financial distress within a one-year time horizon. Our proprietary FRISK® score predicts bankruptcy risk at public companies with 96% accuracy. The score is formulated by a number of indicators including stock market capitalization and volatility, financial ratios, bond agency ratings from Moody’s, Fitch and DBRS, and crowdsourced behavioral data from a subscriber group that includes 35% of the Fortune 1000 and thousands more worldwide.

Whether you are new to credit analysis or have decades of experience under your belt, CreditRiskMonitor® Bankruptcy Case Studies offer unique insights into the business and financial decline that precedes bankruptcy.