Danger - Failing companies ahead

Financial ratings for UK paper companies was reported by Plimsoll in the categories of strong, good, mediocre, caution or danger. Plimsoll rated 13,798 companies in receivership, liquidation or dissolved. The ratings are based on the latest four years of audited company accounts using stability, profitability, working capital, gearing and immediate liquidity as five key measures of financial performance. The companies with a high risk of failure were found to lack resources to compete due to loss and heavy debts. Plimsoll Model having innovative predictive power was used for rating the companies. The graphical nature of the analysis allows easy identification of the areas of strength and weakness of a company.