CreditPulse — Coverage. Analysis. Perspective.

The CreditPulse bankruptcy watch is a list of companies from the CSI with a high possibility of insolvency.  Some 30% of the companies meeting the CSI bankruptcy criteria in the 2007 index actually filed for Chapter 11 in 2009.  The following criteria are used in determining which companies make the list: 

•  Extremely high debts-to-assets ratio
•  Extremely low market cap-to-revenue ratio
•  Low operating cash flow as a percent of revenue

Please note this is only a watch list, not a warning list.  We do not have inside or specific information that any of the following 12 companies will actually file for bankruptcy.  Determination is made solely on the basis of financial analysis using figures from 2008 annual filings. 

Vonage Holdings Corp (VG) 
Holmdel, NJ
Comm Services

Debts-to-assets: 1.27:1.00
Market cap-to-revenue: 0.24:1.00
Ops cash as % of revenue: 0.1%

Revlon Inc (REV)
New York, NY
Personal & Household

Debts-to-assets: 2.37
Market cap-to-revenue: 0.48
Ops cash as % of revenue: 2.5%

YRC Worldwide Inc (YRCW)
Overland Park, KS
Trucking

Debts-to-assets: 0.88
Market cap-to-revenue: 0.10
Ops cash as % of revenue: 2.5%

Georgia Gulf Corp (GGC)
Atlanta, GA
Chemicals & Synthetics

Debts-to-assets: 1.09
Market cap-to-revenue: 0.03
Ops cash as % of revenue: 1.4%