In May, Forbes put together “The Risk List” of fifty companies “flashing danger signs.” Most of the time, people like to be on lists. But this is one where no one covets inclusion and is basically the exact opposite of Forbes‘ Most Trustworthy Companies list.
Among the unfortunate are household brands like Rite Aid, Sanyo, Borders, the MGM Mirage and US Airways. Fast Company offers a little more perspective on those who made the list:
For most companies, the chart give a pretty rough and dirty approximation–basically looking at revenues against one-time massive expenses such as capital expansion. For example, you’ll see MGM Mirage’s massive spending gamble on CityCenter holding court in the Very Aggressive category. Sometimes, there are wildcards like insurance claims or court cases–expect to see BP blowing up here next year. But usually it’s just big companies spending money they didn’t earn this year, and thus taking on new debt.
For the handful of retailers on this list, risk makes sense; they could gain big when the economy improves. But for some of the other industries it’s harder to understand–so many hospitality corporations are represented it makes you wonder if hotels can indeed absorb all that financial stress.
Interesting stuff.
The more immediate, breaking news here, however, is that a media outlet called Meet the Boss TV has produced a pretty cool infographic that shows how these companies stack up. With just a quick glance, you can see how the 30 riskiest companies relate in terms of revenue and how aggressive they are with accounting and governance.
Click through here to see the full-size version.
