Net Loss: Mile-high WiFi provider Global Eagle Entertainment Inc. has gone bankrupt, which is something our FRISK® score predicted could happen.
The Los Angeles-based company filed for Chapter 11 protection on July 22. Notice the trend the 96%-accurate FRISK® score revealed for Global Eagle Entertainment since the start of 2019:
The FRISK® score is a proprietary score indicating a company's level of financial stress, based on the probability of bankruptcy over a 12-month horizon. It incorporates a number of critical risk indicators, including:
- crowdsourced click patterns of credit managers and other subscribers,
- stock market capitalization and volatility,
- financial ratios, including those used in the Altman Z”-Score model, and
- Moody’s, Fitch and DBRS Morningstar bond agency ratings
The FRISK® score is calculated daily with the most recent information in the CreditRiskMonitor database.
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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
- Agency ratings
- 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.
Download the free report to learn more.
About Bankruptcy Case Studies
CreditRiskMonitor® Bankruptcy Case Studies provide post-filing analyses of public company bankruptcies. Our case studies educate subscribers about methods they can apply to assess bankruptcy risk using our proprietary FRISK® score, robust financial database, and timely news alerts.
In nearly every case, a low FRISK® score gave our subscribers early warning of financial distress within a one-year time horizon. Our proprietary FRISK® score predicts bankruptcy risk at public companies with 96% accuracy. The score is formulated by a number of indicators including stock market capitalization and volatility, financial ratios, agency ratings, and crowdsourced behavioral data from a subscriber group that includes nearly 40% of the Fortune 1000 and thousands more worldwide.
Whether you are new to credit analysis or have decades of experience under your belt, CreditRiskMonitor® Bankruptcy Case Studies offer unique insights into the business and financial decline that precedes bankruptcy.