Finances seem not to compute these days for California-based tech solutions provider Quantum Corporation, now at heightened risk of bankruptcy in 2018.
t's been a tumultuous ride for Quantum, who went from having more than $30 million in working capital in 2016 to a recurring negative working capital in each quarter from 2017 onward. Since that turn of the calendar to 2017, the company has been unable to generate any positive returns, with steep net losses in each quarter. Their negative tangible net worth in 2018 suggests that it's likely that loanable collateral has been exhausted.
CreditRiskMonitor®'s FRISK® score, meanwhile, has consistently shown Quantum to be a risky bet for your public company portfolio. 96% accurate in predicting U.S. public company bankruptcy risk within a 12-month window, the FRISK® score now shows Quantum's descent to a score of "1," indicating a 10-to-50% chance of bankruptcy before March 2019:
This High Risk Report will illustrate how both the FRISK® score and FRISK® Stress Index, among other features of the CreditRiskMonitor service, affords our subscribers the quick-to-find, organized and accurate data necessary to make decisive calls on how to avoid risk in their portfolios.
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.
Download the free report to learn more.
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.