Big-time bankruptcy risk follows Babcock & Wilcox Enterprises, Inc., a boiler manufacturer that has kept its doors open while recently racking up an enormous amount of short-term debt.
The Barberton, Ohio-based company has seen its FRISK® score languish between a "3" and a "1" in the last year. The FRISK® score is a 96% accurate indicator of public company bankruptcy risk inside of a 12-month window. As it stands, Babcock & Wilcox represents up to a 50% chance of filing for Chapter 11 between now and April 2020:
This High Risk Report digs deep to find the troubling data points which portend a grim future for this employer of 4,000-plus Americans. Babcock & Wilcox's negative tangible net worth, for example, suggests that the company has exhausted all of its loanable collateral. With meager cash, quick and current ratios, as well as an inability to generate any positive returns, the company will have its work cut out for it to try and stabilize their business without assuming even more debt in the process.
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About High Risk Reports
Our High Risk Reports feature companies that are exhibiting a significantly high level of financial distress, as indicated by our proprietary FRISK® score.
The reports highlight the factors that have pushed a company's score lower on the "1" (worst) to "10" (best) FRISK® score, which is 96% accurate in predicting bankruptcy over a 12-month period. The High Risk Reports also includes analysis on financial indicators such as the company’s DBT index, stock performance, financial ratios and how it is performing relative to its industry peers.
The ultimate goal of the High Risk Report series is two-part: provide an early warning for those doing business with an increasingly distressed company and inform of the many signals that should be examined when assessing financial risks.