Question
Based on some of the following Signs a Company's In Trouble, brainstorm potential companies that you think might be in trouble. Then, choose your favorite
Based on some of the following "Signs a Company's In Trouble", brainstorm potential companies that you think might be in trouble. Then, choose your favorite candidate and share your choice and discuss why the company might be a good candidate. Try to be creative with your choice of company.
- Big or high rise in goodwill
- Low current ratio
- Gearing- debt-to-equity significantly greater than the share of equity
- Plunging cash flow as in the relationship between profit and cash generated.
- Adjusted EBITDA compared to net profit.
- Layoffs
- Company agents dumping shares
- Flawed business model
Note: I was trying to look at WeWork Inc., but was unable to get a recent financial statement other than the prospectus filed with SEC back in 2019.
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
16th Edition
324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140
