Signals and Questions that bring alarms on your Company, Business and Finance

2️⃣4️⃣ Signals and Questions that bring alarms on your company, business and finance

 

Ask questions for each signal:

-Excess of Debt or High Indebtedness

1️⃣ Does it seem to you that the company has a very high debt or debt excess compared to previous years or regarding its assets?

-The Indebtedness does not match

2️⃣ From the accounting point of view, the debt is not matching in recent periods?

– Weak or Bad Management

3️⃣ Do you think the company has had bad management in recent years?

-Suddenly Resignation of a Manager of the Company

4️⃣ Has an important Executive or Manager in the Company suddenly resigned without any logic?

– Grow without being profitable

5️⃣ Has the company been growing for several years but low profitable?

-Dramatic Downside in the Stock Market

6️⃣ Has there been a drastic drop in the share’s market price in recent years?

-Offering Excessive

7️⃣ Performance in Bonds or Debt-Is the company offering excessive returns on bonds or debt issued?

-Offer Premium Bonuses

8️⃣ Is the company in its debt issuances offering premiums?

-Low Credit Rating and Market

9️⃣ Has the company decreased its credit and market ratings?

-Drawing

🔟 Do I believe that the company has been oversized in recent years?

– Issuance of Underlying Assets (Junk Bonds or as the Goldman Sachs Case)

1️⃣1️⃣ Is the company issuing subordinated assets of assets already issued (bonds or paper)?

– 1️⃣2️⃣ High Issuance of Liabilities (Bonds)

-1️⃣3️⃣ Resignation in Some of the Important Executives

-Recurrent Labor Conflicts

1️⃣4️⃣ Has the company maintained and maintains recurring labor conflicts without any logic?

-Assets or unproductive investments

1️⃣5️⃣ Do I believe that the company keeps too many unproductive investments in recent years?

Excess in Expenses, Expenses Greater than Income; Assets that Generate Expenses

1️⃣6️⃣ Does the company maintain excessive expenses in relation to income?

1️⃣7️⃣ Does the company maintain high assets that generate excessive expenses?

-Loans with Related Companies

1️⃣8️⃣ Does the company have high loans with other related companies?

1️⃣9️⃣ Does the company constantly ask for loans from related companies?

-Centrifuges of Money between Related Companies

2️⃣0️⃣ Does the company maintain the flow of money combined with other related companies?

2️⃣1️⃣ Are there constant and high rates of collections and payments between related companies?

-Offering Performance- Returns above the Average of others, in Excess (Case Financially and some Banks that offer too high interest rates)

2️⃣2️⃣ Does the company offer much higher yields on its bonds or debt issuance than its competitors?

-Qualification of the Company by the Risk Qualifiers

2️⃣3️⃣ Has there been a drastic fall in the company’s risk rating?

-External auditors

2️⃣4️⃣ Have therebeen any problems, signs or any important index with the external auditors?

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