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Excess inventory can create significant problems for a business. Itcan also be a potential red flag for credit professionals whenanalyzing a company’s creditworthiness. An important credit metricto understand is the ratio of inventory to sales.

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Inflation jumped to 6.2% in October, the largest 12-month increase in 30 years. Supply shortages and continued consumer demand have pushed up prices. This is the fifth straight month that the consumer price index has topped 5%. Several businesses are passing along the increases to consumers and we expect high prices to remain elevated for the next few months.

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Real gross domestic product (GDP) increased 6.7% in the second quarter of 2021, reflecting continued economic growth in the United States. GDP rose 6.3% in the first quarter. However, the past 12 months generated a widening gap in credit risk and recovery across sectors. This phenomenon is known as a “K-shaped” recovery,

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Inflation continues to run hot, with September's consumer price index rising 5.4%. Over the last year, consumer prices have risen more than 5%, the fastest pace in more than a decade. The Fed predicts an annual inflation rate of 4.2% by year end, up from 3.4% in earlier forecasts. Inflation is expected to cool to about 2.2% in

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As we have seen in many crises of the past, liquidity, and access to it, is paramount to the survival of businessoperations. As product makers experience high demand from the recovering economy, inventories need to bereplenished and kept at higher levels, which requires more working capital. With companies buying

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Market tailwinds, continued low interest rates, and record fundraising are providing private equity (PE) firms with ample opportunities to expand their portfolios. PE firms are also looking to reposition their business models for a post-pandemic world. As a result, global private equity “dry powder” is at an alltime high. Dry powder is money committed by investors but not yet deployed.

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Companies in financial distress have various options to address unsustainable capital structures and out-of-court restructurings continue to be an increasingly popular option. While a Chapter 7 or a Chapter 11 bankruptcy may be appropriate for adjusting a company’s capital structure and maximizing value...

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Financial risk analysis is critical to the credit decision process. Credit professionals should understand themajor categories that encompass this type of risk to obtain a better view of the company’s overall health.Financial risk typically falls into three categories: profitability, capital structure, and cash flow.

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Over the past year, special purpose acquisition company (SPAC) initial public offerings (IPOs) have floodedthe U.S. financial market. Although SPACs have been around for decades, 2020 was a record-breaking yearand 2021 remains busy as investors and management teams try to mitigate the increased market volatility riskof traditional IPOs.

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In Recycling Today article, Victor Sandy, executive with scrap-focused credit advisory firm, says monitoring creditworthiness should be systematically managed.

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Form Technologies recently completed a Transaction Support Agreement by which the companyrecapitalized and extended debt maturities. Form Technologies is a manufacturer of small precisionengineered components and its subsidiaries include Dynacast and Signicast.

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More and more private equity firms are turning their attention to the plastics and packaging sector. 2019 sawan uptick in private equity interest and the trend continues as we enter 2021.

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2021 is forecasted to be a high risk year. Lingering effects of COVID-19 remain rampant in the economy, especially in the industrial sector, which is point to higher insolvency risk this year.

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We believe credit pressures will persist in 2021 but we also note the coronavirus vaccine roll out could helpboost the economic recovery in the United States and Canada. Additionally, S&P Global Ratings reportsthat borrowing conditions remain favorable for many companies.

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According to S&P Global Market Intelligence, a total of 574 companies have gone bankrupt this year as of November 15, still on track to surpass the figure from 2019. The top three sectors leading the bankruptcy filings are consumer discretionary, industrials, and energy.

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With an uptick in distressed debt exchanges (DE), we thought it would be best to explain what they are, why companies use them, and how they impact credit risk.

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ProfitGuard Announces Its Expansion Further into the Industrial Sector

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The pandemic driven economic downturn adversely affected numerous industries across the globe. The automotive industry was not immune and was one of the hardest hit as manufacturers idled production for two months during the early stages of the outbreak. We are starting to see some stabilization but expect volumes to remain low in the near

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ProfitGuard's new enhancements help you better predict future payment performance, minimize default risk, and integrate more trade data into your decision making process with our improved portfolio analysis toolset.

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Companies in the metals and manufacturing segments typically rely on borrowing for working capital and funding purposes. If you are securing regular bank updates on your customers, you have probably noticed Asset-Based Lending (ABL) agreements.

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While adverse opinions are generally rare because companies typically conform to auditor desires, they still exist when the accounting firm believes there is substantial doubt that the company can continue as a going concern due to financial or operating problems.

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Globalization. A term used to describe the increasing connectedness and interdependence of world cultures and economies. As the United States enters its fourth month battling COVID-19, disruptions from the pandemic have practically silenced this interconnectedness. In response, manufacturing companies are rethinking their global supply chains.

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The old saying that cash is king has never been truer, in fact, it’s not only king it's queen, prince, and the whole royal family. As we have seen in many crises of the past, liquidity and access to it, is paramount to the survival of business operations.

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As the pandemic continues to dominate global headlines, we would like to focus on positive data being reported. Encouraging headlines are slowing beginning to emerge, and forecasts indicate the beginning of a recovery in the second half of year as the slow process of reopening the economy takes shape.