The Gymboree Corporation
The Gymboree Corporation (Nasdaq: GYMB) has a FRISK® score of 1, the worst score on our 1 to 10 bankruptcy risk rating scale. Companies who do business with this children's apparel retailer are exposed to substantial financial risk today. CreditRiskMonitor's High Risk Report illustrates, using Gymboree as an example, how you can identify the riskiest counterparties.
In this report, we highlight trends that help identify when risk has become extremely elevated and adjusting your dollar exposure may prove to be prudent. For example, Gymboree’s declining working capital over the last twelve months is a particularly concerning red flag. So, too, is the retailer's comparison to peers on key financial metrics like gross margin and its quick ratio. To state it simply, Gymboree is in the bottom quartile in far too many ways.
About High Risk Reports
CreditRiskMonitor’s 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.