See How to Identify Companies in Crisis Before It's Too Late

See How to Identify Companies in Crisis Before It’s Too Late

Written by Bruno Teles

Published on 27/01/2023 at 15:15

Updated on 27/01/2023 at 18:20

Empresas em crise (Foto/divulgação)

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The Entire Crisis Led Americanas To Seek Judicial Recovery And Caught Many By Surprise, Raising An Important Question: Is It Possible To Identify Companies In Crisis Before It’s Too Late?

How to know if the company is facing any problems? High indebtedness:

One of the most alarming points is the increase in corporate debt that, according to Vitorino Galindo, a CNPI investment analyst and head of fundamental analysis at Quantzed, which is an analysis house and a technology and financial education company for its investors.

In addition to analyzing indebtedness in isolation, it is important to check specific multiples and the solvency of the business, according to Régis Chinchila and Luis Novaes from Terra Investimento. Among them are:

ARTICLE CONTINUES BELOW

Analysis: The Crisis of Major Technology Companies

Comparison With The Competition:

Other signals that can be considered when analyzing whether a company is not doing well, according to Sebrae MS, are below-average profitability in their respective sectors and increasing complaints from customers of companies with low productivity, in addition to debts concentrated in the short term.

Can Ratings Agencies Help?

These ratings agencies further help indicate the financial situation, its projections, and expectations for the financial health funds of all companies.

“In cases of accounting fraud, like in Americanas and IRB Brasil (IRBR3), things that are not in the audited statements cannot be known by anyone, not even the ratings agencies,” he states.

He further explains that ratings agencies project and analyze risks based on what has been reported in the audited results.

Examples Of Companies In Crisis:

There are still companies and sectors that worry analysts regarding higher leverage than the historical average, which is the case for airlines, according to Terra Investimento.

“To maintain their operations, they increased their indebtedness and received capital injections,” affirm the experts of the house. According to them, the significant discount of these airline stocks in recent times demonstrates what markets are aware of the challenging prospects of their sectors.

But considering that debt is not an irreversible issue, as it also involves a still adverse moment in the sectors or recoverable with the operational cash generation of the companies.

See The Largest Cases of Judicial Recovery In Brazil

Considered the largest judicial recovery in Brazil is Odebrecht, which began its process in mid-2019, with a debt of more than R$ 80 billion.

In recent years, there have also been several other cases of judicial recovery that drew a lot of attention in the market. One example of all this was OGX, which was created by Eike Batista, filed for bankruptcy in 2013 with a debt of over R$ 13.8 billion and exited this process in mid-2017.

Among the companies in crisis, Ricardo Eletro also declared bankruptcy last year. Nevertheless, in this case, the measure was suspended after a court decision. Since mid-2020, the company has been undergoing judicial recovery. In July 2022, the estimated debt was R$ 4 billion.

See How to Identify Companies in Crisis Before It’s Too Late

The Entire Crisis Led Americanas To Seek Judicial Recovery And Caught Many By Surprise, Raising An Important Question: Is It Possible To Identify Companies In Crisis Before It’s Too Late?

Analysis: The Crisis of Major Technology Companies

See The Largest Cases of Judicial Recovery In Brazil

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Australia installs giant concrete structures on the seabed 800 meters from the shore to create an ocean intake for desalination that will draw in saltwater and produce 30 million liters of drinking water per day.

Goodbye traditional washing machine: Panasonic surprises housewives with the NA-G5 featuring four drums, a 13 kg washer and dryer, a 12 kg dryer, independent mini washers, a heat pump, and a 4-in-1 system awarded at the German Design Award.

While cities spend fortunes patching potholes and tons of plastic become waste, the Netherlands transforms over 218,000 recycled cups into a modular bike path that can conceal drainage, cables, and pipes.

A public school student single-handedly created a machine capable of treating water for up to 50 people using only solar energy. It was awarded third place at one of the most important science fairs in the world.

While a traditional school may take several days just to raise walls, in Malawi a 3D-printed school had its structure ready in 18 hours, welcomed children in June, and showed a new solution to the lack of classrooms.

Port of Gothenburg prepares dredging of 11 million m³ of clay to deepen the channel to up to 17.5 meters and accommodate fully loaded giant ships of 430 meters, in a strategic project for Sweden and its global maritime foreign trade.

1,300-year-old Viking-era sword found by boy in Norway during school trip surprises archaeologists

Goodbye, radio waves: Europe begins downloading data from satellites to Earth with invisible laser beams at 2.5 Gbps in an ESA-supported project that promises to end interception and jamming that threaten current space communication.

Autonomous trucks are already carrying real cargo on Texas highways with no one at the wheel, charging per kilometer like Uber, and accelerating a transformation that could put millions of truck drivers at risk even before autonomous cars dominate the cities.

Shopee chooses Londrina to open a 100,000 m² megacenter in Paraná, in a project that promises to generate 2,000 direct jobs and transform the city into a strategic point for deliveries in the South, São Paulo, and Mato Grosso do Sul.

See How to Identify Companies in Crisis Before It’s Too Late

The Entire Crisis Led Americanas To Seek Judicial Recovery And Caught Many By Surprise, Raising An Important Question: Is It Possible To Identify Companies In Crisis Before It’s Too Late?

Analysis: The Crisis of Major Technology Companies

See The Largest Cases of Judicial Recovery In Brazil

While an average building in London or New York takes three years to be completed, in China a 26-story tower went up in five days with about 100 workers, and the global modular construction market already moves US$ 95 billion per year.

Australia installs giant concrete structures on the seabed 800 meters from the shore to create an ocean intake for desalination that will draw in saltwater and produce 30 million liters of drinking water per day.

Goodbye traditional washing machine: Panasonic surprises housewives with the NA-G5 featuring four drums, a 13 kg washer and dryer, a 12 kg dryer, independent mini washers, a heat pump, and a 4-in-1 system awarded at the German Design Award.

While cities spend fortunes patching potholes and tons of plastic become waste, the Netherlands transforms over 218,000 recycled cups into a modular bike path that can conceal drainage, cables, and pipes.

A public school student single-handedly created a machine capable of treating water for up to 50 people using only solar energy. It was awarded third place at one of the most important science fairs in the world.

While a traditional school may take several days just to raise walls, in Malawi a 3D-printed school had its structure ready in 18 hours, welcomed children in June, and showed a new solution to the lack of classrooms.

Shopee chooses Londrina to open a 100,000 m² megacenter in Paraná, in a project that promises to generate 2,000 direct jobs and transform the city into a strategic point for deliveries in the South, São Paulo, and Mato Grosso do Sul.

Brigadeiro becomes a R$ 300,000 per month business in Porto Alegre after a couple transforms an empty store into a buffet inspired by children’s parties, which now attracts up to 600 customers per weekend and turns down reservations due to lack of space.

Havan advances in Rio Grande do Sul, builds a megastore of 10,000 square meters on BR-470, invests R$ 90 million, creates 200 direct jobs, and confirms a historic opening for June 2026 in Garibaldi, in Serra Gaúcha.

Cooperative that already reaches 77% of Brazilian households announces R$ 600 million to expand a slaughterhouse in SC and slaughter 5,000 pigs per day, more than double the current amount, with over a thousand new jobs in the Extreme West of Santa Catarina.

Accelerated growth in international demand for compact properties in tourist neighborhoods of Rio boosts the real estate market, expands short-term rentals, and attracts investors from Europe, Latin America, and the Middle East to the city.

Port of Gothenburg prepares dredging of 11 million m³ of clay to deepen the channel to up to 17.5 meters and accommodate fully loaded giant ships of 430 meters, in a strategic project for Sweden and its global maritime foreign trade.

1,300-year-old Viking-era sword found by boy in Norway during school trip surprises archaeologists

Goodbye, radio waves: Europe begins downloading data from satellites to Earth with invisible laser beams at 2.5 Gbps in an ESA-supported project that promises to end interception and jamming that threaten current space communication.

Autonomous trucks are already carrying real cargo on Texas highways with no one at the wheel, charging per kilometer like Uber, and accelerating a transformation that could put millions of truck drivers at risk even before autonomous cars dominate the cities.

Shopee chooses Londrina to open a 100,000 m² megacenter in Paraná, in a project that promises to generate 2,000 direct jobs and transform the city into a strategic point for deliveries in the South, São Paulo, and Mato Grosso do Sul.