Paperweight Development Corp.
Paperweight Development Corp. filed for bankruptcy on October 1, 2017. Prior to filing, CreditRiskMonitor's proprietary FRISK® score labeled the company as a risky credit relative to industry competitors based on its low score of "3."
This Bankruptcy Case Study provides an analytical review of key financial metrics for Paperweight. Two indicators of its high-risk standing included its poor liquidity measurements, such as its quick ratio trending below 0.5 times, as well as a weak interest coverage ratio. These warning signals, among others, provided risk managers an adequate window to adjust their exposure.
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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 CreditRiskMonitor’s 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. CreditRiskMonitor's 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 and Fitch, 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.