10 Signs A Company’s In Trouble

10 signs a company’s in trouble

  1. Company has big increases in capitalised costs, especially internally generated ones and long-term receivables.
  2. Unusual reductions in asset valuations for items such as inventory, receivables and fixed assets.
  3. No interest being earned on large cash balances.
  4. Margins that are way ahead of competitors.
  5. Inclusion of large amounts of accrued income (estimated expected revenue) in a balance sheet.
  6. Growth that is reliant from acquisitions.
  7. Deteriorating asset quality.
  8. Rising accrued income.
  9. Related party transactions.
  10. Growing levels of stock.

10 Signs A Company’s In Trouble conclusion

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