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Dateline: March 4, 2009 ... Libertyville, IL
Contact: Carol J. Greenhut, Schonfeld & Associates, Inc.
Phone: (800) 205-0030
E-Mail: CGreenhut@saiBooks.com
Web Address: www.CreditRiskWatch.com/crw.html
LIBERTYVILLE, IL - March 4, 2009 - The newly released monthly report
Credit Risk Watch from Schonfeld & Associates, Inc. provides corporate
creditworthiness information for over 4000 public companies. In
today's financial climate, it is more important than ever to be able
to accurately assess corporate creditworthiness. One measure in use
since 1968 is Altman's Z Score. The Z Score predicts the likelihood of
bankruptcy within two years with greater than 70% accuracy. The lower
the score, the higher the risk of bankruptcy. Z Scores above 3
indicate bankruptcy is not likely while a score below 1.8 indicates it
is likely. Scores between 1.8 and 3 are inconclusive.
In addition to the Z Score, there are additional financial ratios that
measure factors contributing to creditworthiness such as liquidity,
capital productivity, return on assets, interest coverage, rate of
cash generation, capital adequacy and excess cash flow. Each monthly
edition of Credit Risk Watch provides values for these ratios for each
of over 4000 public companies and the industries they represent based
on the latest published quarterly financial statements and projections
for four fiscal quarters into the future.
Asset ratios measure the ability to meet short term obligations,
productivity of capital, earning power of assets and effective
interest cost on all capital. Liability ratios indicate the speed at
which the firm could retire its debt, the firm's use of debt in its
long term capital structure and the rate at which the firm generates
excess cash flow. Interest coverage ratio and expected change in net
income are also presented. Companies within the financial services
sector have ratios presented that are more applicable to their
operations. For example, Current Ratio is replaced by Cash as a
Percentage of Total Assets, measuring the liquid portion of total
assets.
Comparing a company's Z score to the average for all companies in its
industry indicates whether the firm is more or less creditworthy than
its peers. Comparing the current Z score, based on the latest
published quarterly financial statements, to an estimate for four
fiscal quarters in the future gives an indication of the direction in
which the company's creditworthiness is headed.
Credit Risk Watch highlights the least creditworthy firms based on
future Z Scores, the most eroding credits based on expected change in
Z Score, and the most under-performing company in each industry group
based on difference of Z Score from the group average. Every month an
updated report containing the highlights is available and complete
data files are provided so that the user can do additional analysis.
Credit Risk Watch provides an invaluable tool to guide business
managers to judge the creditworthiness of potential partners,
suppliers or customers. It can help credit managers evaluate credit
risk and exposure. The report provides valuable insights to financial
analysts to aid in identifying and managing investment opportunities.
An annual subscription to Credit Risk Watch includes 12 monthly
reports and associated data files and is available for $ 149. Please
contact us for more information:
Schonfeld & Associates, Inc.
1931 Lynn Circle
Libertyville, IL 60048
(800) 205-0030
www.CreditRiskWatch.com/crw.html
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