Bankrupt companies list – Is your company going bankrupt?

Bankrupt Morgan Stanley

 

With recession in America, many people are asking themselves: Is MY company going bankrupt?  What’s going on in the financial markets?  Where is MY 401K headed?  Have I been duped?  WHAT’S GOING ON AROUND HERE?!?!

 

 

 

Here are 4 simple ways you can find out if your company is going bankrupt – just look at the way their stock trades.  

  • Dept/income ratio. Most of the on-their-way-to-bankruptcy companies have a debt/income ratio more than 10. According to analysts ratio around 8 is good, but a double-digit ratio could make you reconsider. 

  • Debt/equity ratio. If debt/equity ratio is above 0.5 ( according to some sources above 1.0) the company is a bad candidate for buying their stocks – meaning that they *might* go bankrupt. Rate 1.0 means that the company has as much debt as it has equity. Company with the rate of 0.5 is considered a low-debt company. 

  • Short-term debt. If a company needs to repay any great short term debts with big interest rates there might be problems with the company – to make sure check their profit margin. It has happened that companies with short-term loans who are unable to get an extension will eventually end up going bankrupt. 

  • Interest coverage ratio. Interest coverage ratio is a operating income divided by last 12 months of interest payments. If a company can’t handle to pay their debt interest rates, be alarmed. Good ratio is anything above 4. If the rate is 1.0 or less, the company might be in trouble. 

According to those parameters – where does your company stand?  Morgan Stanley?  ING Direct?  TD Ameritrade? JP Morgan Chase? Wells Fargo? Bank of America/Merrill Lynch? Citigroup? Goldman Sachs? Bank of NY Mellon?  State Street? PNC Financial? Capital One? SunTrust Banks? Regions Financial? Fifth Third? BB&T? KeyCorp? Comerica? Northern Trust? Huntington? First Horizon National? City National? Valley National? UCBH Holdings? Washington Federal? First Niagara?

 

As you can see, the list is ENDLESS!  Why?  Why are all these banks looking for help from bailout money? 

 

Is your company going bankrupt?  Or is it already?

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