Early Warning System For Corporate Creditworthiness

Produced each month, this study provides creditworthiness measures for each of 4,000+ public companies along with comparison to industry peer norms. Use as an early warning system to manage credit risks and exposure. Excel datafiles also available.
Jan. 18, 2013 - PRLog -- Updated monthly, Corporate Credit Outlook from Schonfeld & Associates, Inc. provides corporate creditworthiness information for over 4000 public companies. One measure of corporate creditworthiness that has been 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.

The creditworthiness measures within Corporate Credit Outlook include historical and predicted Z-scores, forecasts of key credit and coverage ratios by company and comparison to industry peer group averages. This information can serve as an early warning system for credit managers in listing the 1000 least creditworthy companies, the 1000 most eroding credits and the most underperforming company in each industry peer group.

Asset ratios measure the ability to meet short term obligations, productivity of capital, earning power of assets and the 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 Ratios is replaced by Cash as a Percentage of Total Assets, measuring the liquid portion of total assets.

Comparing a company’s predicted 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 historical 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.

The Corporate Credit Outlook data files, in Excel format, provide current values for the ratios for each of over 4000 public companies and the industries they represent based on the latest published quarterly financial statements as well as projections of the values for four fiscal quarters into the future.

In an era of financial uncertainty, Corporate Credit Outlook provides a tool to help credit managers manage credit risks and exposure. The report also provides valuable insight to financial analysts to aid in identifying and evaluating investment opportunities.

Copies of the 220-page study are available in PDF format for $ 495. The Excel data files, containing information by company and by industry, may be purchased along with the study for an additional $100. For more information or to place an order, please contact Schonfeld & Associates, Inc., 1931 Lynn Circle, Libertyville, Illinois 60048, 800-205-0030 or visit the corporate creditworthiness area of expertise on www.saiBooks.com.
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Tags:Creditworthiness, Credit Risk, Investment, Liquidity, Financial Performance
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