Neiman Marcus Group LTD LLC is one of the latest retail operators experiencing significant financial distress. Its FRISK® score of "1" indicates that the business has an elevated probability of default or bankruptcy over the next 12 month period.
This High Risk Report will demonstrate key factors that are contributing to Neiman Marcus' current high risk status. For instance, the business has reported five consecutive quarters of net losses as well as cumulatively negative free cash flow. Unfortunately, the retailer is also working under the weight of a heavy debt load. Based on these factors, it may be difficult for the company to survive much longer.
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.