American healthcare services leader Owens & Minor, Inc. is trending towards a higher probability of bankruptcy. We advise continuous, thorough checkups of your portfolio when assessing public company financial risk.
The Virginia-based company, which employed an estimated 6,700 as of EOY 2018, provides supply chain assistance to the providers of healthcare services and the manufacturers of healthcare products, supplies and devices. Their FRISK® score dropped to a "1" in February 2019 and has not risen since:
This High Risk Report answers questions as to why a company that's been paying it's bills on time is still seen as a dangerous counterparty: the company has been unable to generate any positive returns in the last five fiscal quarters, during which they've had net losses in each of the five. A public company like Owens & Minor can keep itself afloat by accruing more and more debt, but the bill will be coming due soon.
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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%. 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.