Risk professionals who did not heed CreditRiskMonitor and strikingly low daily FRISK® scores for Weatherford International plc failed to see it's true bankruptcy potential.
The FRISK® score provides our subscribers with an advanced warning system for public company financial distress, predicting bankruptcy risk 12 months out. Since the FRISK® score leverages the information provided by four key metrics – stock market capitalization and volatility, financial ratios, bond agency ratings and crowdsourced CreditRiskMonitor subscriber usage data – it is able to identify that public company risk with 96% accuracy.
For Weatherford, we saw danger for more than a year:
In this Bankruptcy Case Study, we take you right into the areas of our subscriber site where you would find the most informative data on Weatherford International plc: not only the FRISK® score, but peer analysis on alternate suppliers and customers, quarterly performance ratios, quarterly leverage ratios and much more.
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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%. 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.