Beauty is only skin deep - CreditRiskMonitor's public company risk analysis for our subscribers is anything but. Thanks to our proprietary FRISK® score, we were able to identify cosmetics icon Revlon, Inc. as an increasingly risky bet to stave off bankruptcy in 2018. Since February 2017, Revlon has sank from a score of "4" to a "1," which is the lowest-possible rating on our scale. With net losses in the last five fiscal quarters, a poor interest coverage ratio and recurring negative free cash flow, we predict that Revlon, Inc. stands a 10-to-50% chance of filing for bankruptcy within the next 12 months:
If you aren't a CreditRiskMonitor subscriber and you're concerned about companies like Revlon, Inc., we're ready to aid credit, procurement and treasury professionals by providing real-time financial data and customer support that's unparalleled. Schedule your personalized risk assessment demo today.
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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 nearly 40% 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.