Unilife Corporation (Nasdaq: UNIS) is one of the highest risk companies in the Surgical and Medical Instruments sector. This sector has seen broad-based financial risk increasing for more than a year, facts that are illustrated in our High Risk Report. In fact, the sector's risk level, as measured by CreditRiskMonitor's proprietary FRISK® Stress Index, is higher now than it was during the Great Recession.
Financial stress at Unilife has led the company to receive a FRISK® score of 1, the lowest score on the proprietary 1 to 10 bankruptcy risk scale. The FRISK® score is 96% accurate at predicting bankruptcy risk over the coming 12-month period.
CreditRiskMonitor’s High Risk Report covers factors driving Unilife’s FRISK® score including its current ratio, quick ratio, and interest coverage, which all reside in the bottom quartile of its peer group. The company also hasn't turned a profit in over a year and has been burning cash, using debt to cover its cash flow shortfall.
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.