In May 2017, TerraVia’s management announced that the company had incurred significant losses to date, anticipated to incur continuing losses, and may never achieve or sustain profitability. Working capital for Q1 2017 of ($134) million decreased 360% compared with the prior year end's balance of $52 million, and decreased 234% from $100 million in the same period a year ago. This Bankruptcy Case Study will present several other factors that warned of impending troubles, including an analysis of the retailer's financial statements and troubling news alerts.
The average probability of failure for SIC code 20 (Food and Kindred Products) has increased 124 percent since 2007. TerraVia is among the weakest names in the industry as evidenced by its FRISK® score of "1."
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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, 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.