Parker Drilling Company (NYSE: PKD) provides services for oil & gas well drilling, an industry that is currently experiencing acute financial stress. In fact, the FRISK® Stress Index stands at a "3," which signals that bankruptcy risk is triple relative to an average industry. This broader weakness bodes poorly for the company, which is already one of the more troubled names in the space.
The most notable indicator of risk is Parker Drilling's declining FRISK® score, which has fallen deep into the "red zone." This High Risk Report will demonstrate key factors that are contributing to Parker Drilling's currently distressed state. For example, its debt-to-asset ratio ranks in the bottom quartile of industry peers at 58%. This cumbersome debt load is a significant risk, especially given that the business is still generating persistent operating losses.
Upon reading the report, if you believe that it is time to get even more serious about protecting your business from bankruptcy risk, you may request a demo or a trial at no cost - just provide some basic information about you and your company.
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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%: 235 identified out of 243 bankruptcies. 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 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.