10 signs a company’s in trouble
- Company has big increases in capitalised costs, especially internally generated ones and long-term receivables.
- Unusual reductions in asset valuations for items such as inventory, receivables and fixed assets.
- No interest being earned on large cash balances.
- Margins that are way ahead of competitors.
- Inclusion of large amounts of accrued income (estimated expected revenue) in a balance sheet.
- Growth that is reliant from acquisitions.
- Deteriorating asset quality.
- Rising accrued income.
- Related party transactions.
- Growing levels of stock.
10 Signs A Company’s In Trouble conclusion
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