BUSINESS SUMMARY D&B Risk Radar D&B Viability Rating Risk Analysis Financial Profile Special Events Operation History Public Record Appendix
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BUSINESS SUMMARY
Date Printed: December 01, 2017 LAST FULL REVISION: Aug 01, 2017
MOST RECENT UPDATE: Sep 11,2017
DUNS  24-793-3872  
 

D&B Rating: --

   
 

D&B Viability Rating: 99NA

   
Legal Name:  A B C Company Limited SUMMARY
Tradestyle: Canadian Stores  
 
CONTROL YR 1951
123 Fourth St
SALESF 47,550,000
Etobicoke ON M8V 2Y6
NET WORTH F 5,305,000
 
EMPLOYS 200
 
RECORD Business
Tel: (905) 812-5941 
PRIMARY SIC NO 5311
 
OPERATION: Department stores
 
CHIEF EXECUTIVE:  Terry Smith

 

D&B RISK RADAR


The D&B Risk Radar provides a holistic view and assessment of the risk inherent to a company by considering multiple dimensions: Failure and delinquency risks now and in the future.
 
How does this company pay today?
PAYDEX
Current: 76, Prompt - Slow 15 days beyond terms
Industry Median:76, Prompt - Slow 15 days beyond terms
 
How likely is this company to experience financial stress over the next 12 months?
FINANCIAL STRESS SCORE
National Percentile:0
Industry Median Percentile:69



How will this company likely pay in the future?
COMMERCIAL CREDIT SCORE
National Percentile:0
Industry Median Percentile:9








Click here for further information on the D&B Risk Radar

Financial Stress Summary Credit Risk Summary
 
  • Business or Management D&B Record is present for this firm.
   
  • Business or Management D&B Record is present for this firm.


D&B VIABILITY RATING
 
The D&B Viability Rating uses D&B’s proprietary analytics to compare the most predictive business risk indicators and deliver a highly reliable assessment of the probability that a company will go out of business, become dormant/inactive, or file for bankruptcy/insolvency within the next 12 months.
 
9  
Viability Score
 
 

   Based on information in D&B's data files, the VIABILITY SCORE for this business is 9. This means the company has been placed in a Special Category of BANKRUPTCY or HIGH RISK or BUSINESS DETERIORATION. See DATA DEPTH INDICATOR for details.

9  
Portfolio Comparison
 
 

   Based on information in D&B's data files, the PORTFOLIO COMPARISON for this business is 9. This means the company has been placed in a Special Category of BANKRUPTCY or HIGH RISK or BUSINESS DETERIORATION. See DATA DEPTH INDICATOR for details.

N  
Data Depth Indicator
 
 

   Insolvency - Business or Management has insufficient assets to meet debts and obligations. See Public Records for further details.

A  
Company Profile
Financial Data Trade Payments Company Size Years in Business
Available Refer to Data Depth Large Established
 
 

   Company Profile Details:
  • Financial Data: Available
  • Trade Payments: Refer to Data Depth
  • Business Size: Large (Employees:50+ or Sales: $500K+)
  • Years in Business: Established (5+)

Click here for further information on the D&B Viability Rating


RISK ANALYSIS

PAYDEX

DEFINITION: The D&B Paydex is a unique, dollar-weighted indicator of payment performance based on up to 650 payment experiences as reported to D&B by trade references. The D&B Paydex gives an overview how a company has been paying its bills, within or beyond the agreed terms, as reported to D&B.


Paydex 76
Prompt - Slow 15 days beyond terms  
Top Quartile 80
Median 76
Bottom Quartile 68
 
   
*Due to the limited number of payment experiences available, D&B was unable to calculate the Paydex for this company during this period.
Click here for further information on the Paydex   Based on 1030 firms in SIC 5311

PAYMENT TRENDS

  % Total High Credit Amount
In File: Number
of Exp
Amount
($000)
Disct
Prompt
---- Days Slow ----
1-30 31-60 61-90 91+
12 months ending Aug 2017 16 1447 83% 9% 8% 0% 0%
3 months ending Aug 2017 3 517 100% 0% 0% 0% 0%
 
Credit Extended:     $100.+ 2 1000 100% 0% 0% 0% 0%
($000)        50-99.9 5 325 42% 23% 35% 0% 0%
15-49.9 2 70 25% 75% 0% 0% 0%
5-14.9 7 52 86% 14% 0% 0% 0%
1-4.9 0 0 0% 0% 0% 0% 0%
less than 1. 0 0 0% 0% 0% 0% 0%
 
Trade at net terms 14 1437 83% 9% 8% 0% 0%
Trade at discount 0 0 0% 0% 0% 0% 0%
Cash Experiences 0 0
Placed for Collection 0 0.00
Unfavourable Comments 0 0


* In some instances, payments beyond terms can be the result of overlooked invoices or disputed accounts. Remember that accounts are sometimes placed for collection even though the existence of debt, or the amount, is disputed.


INDUSTRY PAYMENTS

Below is a summary of the company's dollar-weighted payments, segmented by the
 suppliers' primary industries:

                                    TOTAL   LARGEST    %    ---- DAYS SLOW ----
                         TOTAL     DOLLAR     HIGH   W/IN
                         RCV'D     AMOUNTS   CREDIT TERMS  1-30 31-60 61-90 91+
                                                        %     %     %     %   %

 Total in D&B's file        20     1964000   500000

 Payment By Industry:

  1 ENG/ARCH/SURV SVCES      5     1570000   500000    97     3     0     0   0
  2 JOB&VOC REHAB SVCES      3      225000    75000    50     0    50     0   0
  3 DEPARTMENT STORE(S)      3       30000    10000   100     0     0     0   0
  4 EQUINE FARM              3       22500     7500   100     0     0     0   0
  5 BUSINESS SERVICES        3       15000     5000    50    50     0     0   0
  6 CONSULTING SERVICES      2      100000    50000    25    75     0     0   0
  7 MAILING ADDRESS          1        1500     1500     0   100     0     0   0

 Other Payment Categories:
  Cash experiences           0           0        0
  Payment record unknown     0           0        0
  Unfavorable comments       0           0        0
  Placed for collection
        with D&B             0           0
        other                0         N/A

 The highest "Now Owes" on file is $300,000.
 The highest "Past Due" on file is $25,000.


 

DETAILED PAYMENT EXPERIENCES

DATE      PAYMENT            HIGH      NOW     PAST  SELLING              LAST
 REPORTED  RECORD           CREDIT    OWING      DUE  TERMS                SALE

 07-2017   Ppt                7500     1500        0  N30                  1 mo
 06-2017   Ppt              500000   100000    25000  N45                  1 mo
 05-2017   Disc-Ppt          10000        0        0  N30                  1 mo
 04-2017   Ppt-Slow 60       75000     5000     1500  N15
 03-2017   Disc-Ppt          10000     1500        0  N30                  1 mo
           Ppt              500000   300000        0  N45                  1 mo
 02-2017   Ppt-Slow 15        5000        0        0
           Ppt-Slow 30       50000    15000        0  N30                  1 mo
 01-2017   Ppt-Slow 15       35000     4500        0  N15                  1 mo
 12-2016   Ppt-Slow 60       75000    10000     7500  N15                  1 mo
 10-2016   Ppt-Slow 60       75000    45000     7500  N15                  1 mo
           Slow 15           35000        0        0  N15                  1 mo
 09-2016   Ppt-Slow 15        5000        0        0                       1 mo
           Slow 30           50000    35000           N30               4-5 mos
 07-2016   Disc-Ppt          10000     3000        0  N30                  1 mo
           Ppt-Slow 15        5000      750        0  N30                  1 mo
 04-2016   Ppt              500000    80000        0  N45                  1 mo
 03-2016   Ppt                7500        0        0  N30                  1 mo
 12-2015   Ppt                7500        0        0  N30              6-12 mos
           Slow 30            1500        0        0  N30               4-5 mos



 

 


COMMERCIAL CREDIT SCORE

DEFINITION: The Commercial Credit Score predicts the likelihood that a company will pay its bills in a severely delinquent manner within the next 12 months based on the information in D&B’s files. A severely delinquent firm is defined as a business with at least 25% of its payments slow and at least 20% of its payments 90 days or more past due or one or more financial embarrassment or 20% or more payment experiences with negative comments.
 
The Credit Risk Class segments the scoreable business universe into five distinct risk groups where a one (1) represents businesses that have the lowest probability of severe delinquency, and a five (5) represents businesses with the highest probability of severe delinquency.
 
The Bad Rate represents percentage of accounts that perform in an unsatisfactory manner as defined by the good/bad definition that was used at the time the scorecard was developed.


Credit Risk Class 0
Credit Score National Percentile 0
Industry Median Percentile 9
Bad Rate 0

Click here for further information on the Commercial Credit Score  Based on 1427 firms in SIC 5311

 


FINANCIAL STRESS SCORE

The Financial Stress Model predicts the likelihood of a firm ceasing business over the next 12 months without paying all creditors in full, or reorganizing or obtaining relief from creditors under provincial/federal law. Scores were calculated using a statistically valid model derived from D&B's extensive data files.
 
The Financial Stress Class indicates that this firm shares some of the same business and financial characteristics of other companies with this classification. It does not mean the firm will necessarily experience financial stress.


Financial Stress Class: 0
(Highest Risk: 5; Lowest Risk: 1)  
Financial Stress National Percentile: 0
(Highest Risk: 1; Lowest Risk: 100)  
Industry Median Percentile: 69

Click here for further information on the Financial Stress Score Based on 1427 firms in SIC 5311



FINANCIAL PROFILE


STATEMENT

                                12-31-2014        12-31-2015         12-31-2016
                                    Fiscal            Fiscal             Fiscal
                              Consolidated      Consolidated       Consolidated
                                     000'S             000'S              000'S

           Current Assets            5,650             5,990              7,580
           Current Liabs             4,565             3,580              4,495
           Total Assets              8,955             9,530             12,160
           Long Term Debt            1,150               935              2,360
           Tangible Worth            3,240             5,015              5,305
           Revenue                  35,795            36,550             47,550
           Net Income                  675             1,250              1,750

           Prepared from Financial Statement 12-31-2016, Fiscal, Consolidated,
            000's.

           Cash & Deposits               175  Accts Pay & Accrual         4,005
           Accts Receivable              875  Other Payables                 35
           Inventory                   6,500  Owing Bank(s)                 225
           Recoverable Taxes              25  Taxes                          55
           Prepaid Expenses                5  Deferred Income                75
                                              Owing Clients                  45
                                              Current Portion of
                                              Long Term Debt                 55

           Current Assets              7,580  Current Liabilities         4,495

           Fixtures & Equip            4,500  Long Term Debt                925
           Deferred Charges               50  Deferred Income Tax            15
           Capital Leases                 30  Other Non-Curr Liab            65
                                              Other Liabilities           1,300
                                              Capital Leases
                                              Obligation                     55
                                              Capital Stock                 300
                                              Retained Earnings           5,005

           Total Assets               12,160  Total Liabilities          12,160

           Profit & Loss from statement for the 12 months ending 12-31-2016:
           Revenue  47,550.  Net income after taxes  1,750.  At start amount
            5,015.  Net Income  1,750.  Extraordinary items  (1,460).  At end
           amount  5,305.
           06-21-2017 the above figures were received by mail.
           Accountant:  Public Accounting.  Audited.

           08-01-2017 attempts to contact principals were unsuccessful.

           09-11-2017 attempts to contact principals were unsuccessful.
           Lease expires 2020.

 

RATIOS

Financial Ratios derived from SIC 5311: Department Stores, Based on 39 firms here.
  This Company Industry
Quick Ratio 0.23 0.12
Current Ratio 1.68 1.04
Current Liabilities to Net Worth 84.73% 155.16%
Current Liabilities to Inventory 69.15% 57.57%
Total Liabilities to Net Worth 229.21% 255.16%
Fixed Assets to Net Worth 84.82% 45.04%
Collection Period (days) 6.71 4.00
Sales to Inventory 7.31 4.62
Assets/Sales 25.57% 46.00%
Sales to Net Working Capital 15.41 5.29
Accounts Payable to Sales 8.42% 7.51%
Return on Sales 3.68% --
Return on Assets 14.39% --
Return on Net Worth 32.98% --


Please note that calculation of all of the above ratios is dependent on the submission of a full financial statement.
Please see the Appendix for the explanation of financial ratios.


SPECIAL EVENTS
There are no Special Events items to report at this time.


OPERATION
 5311 0001 Operates department stores.
 5311 9902 Operates department stores, non-discount.
           Business peaks:  non-seasonal.
           Principal clients:  general public, commercial concerns.  Principal
           territory:  regional.  Imports.  Principal selling terms:  bill to
           bill 60%, cash 40%.
           Employs 200-300, (110-150 here).
           FACILITIES: Rents 9,302 sq.m, steel building.
           20 vehicles.  LOCATION: Open shopping centre.


           BRANCHES
           --------
           Subject maintains 5 branches:
           Oakville, Ont.  Mississauga, Ont.  Markham, Ont.  Scarborough, Ont.
           Toronto, Ont.

           SUBSIDIARIES
           ------------
           Canadian Test Case 123, Canada

      


           BMO Bank of Montreal, 456 King St, Toronto, ON.,
           Tel: 416 999 9999.

           Royal Bank, 123 Main Street, Etobicoke, ON.,
           Tel: 416 121 1212.





HISTORY
           Corporation registered ON law 01-01-1951 as A B C Company Limited.
           Business commenced 1951.

           TRADE STYLE
           -----------
           Canadian Stores.

           Smith, Terry, Pres, director, chief executive officer.  Active with
                 subject since 1971.  In current position since 1990.
           Henderson, Bob, Officer - Finance, CPA, CA.  Active with subject
                 since 2007.  In current position since 2007.
           Lawrence, Trevor, Exec V Pres - Operation, director.  Active with
                 subject since 2007.  In current position since 2010.

           BUSINESS RECORD:  Canadian Test Case 123, subsidiary of subject,
           entered into receivership 04-05-2013.  Assets:  n/a.  Liabilities:
           n/a. Receiver Manager:  Someone Someone.

 


PUBLIC RECORD

SUMMARY

Items Value of Items
Total Items 1 --
Number of Suit(s) 0 $0.00
Number of Lien(s) 0 $0.00
Number of Judgement(s) 1 $0.00


Note: Some items may not have an associated dollar value

Details

           RECEIVERSHIP
           ------------

           Date:  04-05-2013
           Assets  :  n/a
           Liabilities  :  n/a
           Receiver Manager:  Someone Unique
           (12345678)

           11-09-2016 Dismissal Order registered against subject by Sara
           Hamilton.  (12123434)

           04-01-2017 judgment was rendered in the suit of ALL IN ONE vs A B C
           Company Limited, defendants in connection with breach of contract.
           (15151515CV)

           09-02-2016 A B C Company Limited registered financing statement in
           favour of V4U TRUCKS.  Assets covered:  vehicle(s). Amount:
            105,000.

           06-01-2015 subject registered financing statement in favour of CARS
           & CARS.  Assets covered:  vehicle(s). Amount:   96,000.  (45454545)

           01-15-2014 subject registered financing statement in favour of Royal
           Bank.  Assets covered:  book debts. Amount:  n/a.  (23232323)

           05-01-2013 subject registered financing statement in favour of
           Leasing Unlimited.  Assets covered:  vehicle(s). Amount:  n/a.
           (12345678)

 


- - END OF REPORT - -

If you have any questions or suggestions about this report
please call the D & B Customer Service Center at:
1-800-668-1154
In Toronto and surrounding areas (416) 463-6362
DISCLAIMER: THIS REPORT MAY NOT BE REPRODUCED IN WHOLE OR IN PART IN ANY FORM OR MANNER WHATSOEVER. This report, furnished pursuant to contract for the exclusive use of the subscriber as one factor to consider in connection with credit, insurance, marketing or other business decisions, contains information compiled from sources which D&B CANADA does not control and whose information, unless otherwise indicated in the report, has not been verified. In furnishing this report, D&B CANADA in no way assumes any part of the user's business risk, does not guarantee the accuracy, completeness, or timeliness of the information provided, and shall not be liable for any loss or injury whatever resulting from contingencies beyond its control or from negligence.

 




APPENDIX
(A B C Company Limited)

D&B Risk Radar  

The D&B Risk Radar is a tool that provides a complete view of the risk of doing business with this company today and the potential risk in the future. The triangular plot area offers insight into the risk of doing business with this company according to three dimensions: Paydex, Commercial Credit Score, and Financial Stress Score and allows comparison to the industry group. There are eight distinct types of Risk Radar shapes as outlined below:
 
   
  • Type I: High Paydex, high Commercial Credit Score, and high Financial Stress Score. These are characteristics of a company that has historically paid creditors quickly, is likely to pay creditors quickly in the future, and is less likely to experience an incident of financial stress in the future.
  • Type II: Low Paydex, low Commercial Credit Score, and low Financial Stress Score. These are characteristics of a company that has historically paid creditors slowly, is likely to pay creditors slowly in the future, and is more likely to experience financial stress in the next twelve months.
  • Type III: High Paydex, high Commercial Credit Score, and low Financial Stress Score. These are characteristics of a company that has historically paid creditors quickly, is likely to pay creditors quickly in the future, and is more likely to experience financial stress over the next twelve months.
  • Type IV: Low Paydex, high Commercial Credit Score, and high Financial Stress Score. These are characteristics of a company that historically has paid creditors slowly, is likely to pay creditors more quickly in the future, and less likely to experience financial stress over the next twelve months.
  • Type V: High Paydex, low Commercial Credit Score, and high Financial Stress Score. These are characteristics of a company that has historically paid creditors quickly, is likely to pay creditors slowly in the future, and is less likely to experience financial stress in the next twelve months.
  • Type VI: High Paydex, low Commercial Credit Score, and low Financial Stress Score. These are characteristics of a company that has historically paid creditors quickly, is likely to pay creditors slowly in the future, and is more likely to experience financial stress over the next twelve months.
  • Type VII: Low Paydex, high Commercial Credit Score, and low Financial Stress Score. These are characteristics of a company that historically has paid creditors slowly, is likely to pay creditors quickly in the future, and more likely to experience financial stress over the next twelve months.
  • Type VIII: Low Paydex, low Commercial Credit Score, high Financial Stress Score. These are characteristics of a company that historically paid creditors slowly, is likely to pay creditors slowly in the future, and is less likely to experience financial stress in the future.
Back to Risk Radar  

EXPLANATION OF D&B TERMS

Duns Number (Data Universal Numbering System): A unique 9-digit identification number assigned by D&B to each business in the D&B database. 20-000-0018 is an example of a DUNS Number. Since each unit or location of a business in D&B’s file has its own unique D-U-N-S Number, a large organization may have many different D-U-N-S Numbers within its corporate “family”. D&B links the D-U-N-S Numbers of parents, subsidiaries, headquarters and branches and is accepted worldwide.

High Credit: Largest dollar amount sold, on a one-time basis, in the past 12 months, by the Authority to the business.

History of the company and the background of the principals or owners. Details on related companies may also be included to give you insight into the company’s overall structure.

Industry Norms: Quarterly Paydex of an account’s industry are broken out by upper, median, and lower quartiles so you can compare the account’s performance against its industry peers. You can quickly compare a firm’s Paydex score with the Paydex rankings of other companies in the same line of business.

Judgement: The decision of a judge which finally disposes of an action in court. For our DunTrade Monitoring Report - Judgement may also include the issuance, satisfaction, discontinuance or some other such status.

Last Sale: The number of months, from the “Date Reported”, which have passed since the Authority last sold to this business.

Operation Section describes what the firm does, indicates number of employees and provides a description of facilities & location. It may also provide names and locations of branch operations, plus identify and describe any parent or subsidiary businesses.

Paydex: The D&B Paydex is a unique, dollar-weighted indicator of payment performance based on up to 650 payment experiences as reported to D&B by trade references. The D&B Paydex gives an overview how a company has been paying its bills, within or beyond the agreed terms, as reported to D&B.

The Company Versus Industry Paydex Score section shows the company’s payment trend over a two year period in a linear format. It will also compare a company with others in the same line of business for the same two-year period. You can also compare current year to previous year to isolate seasonal fluctuations in payment performance or study consistency.

Payment Record: The manner of payment as reported to D&B by the Authority.

Public Record or “Public Filings” include information on suits filed, liens, judgments, and other such legal activity. Filings throughout all provinces are monitored on a daily basis.

D&B Rating: The D&B Rating (e.g., 4A3) gives an indication of creditworthiness. The D&B Rating is normally divided into two parts: the financial strength code, then the risk indicator reflects the risk associated with the business. Financial Strength is an indication of the size of the subject's tangible net worth (that is, the shareholders funds less any intangible assets) based primarily on the most recent fiscal balance sheet results. The Composite Appraisal is linked to the level of risk and is an overall evaluation of credit worthiness. It takes into account the financial condition but also several non-financial factors such as trade payment history, length of operation, employee numbers, legal structure, management experience and any adverse listings.

Key to Ratings - Estimated Financial Strength
5A - 50,000,000+ CC - 75,000 to 124,999
4A - 10,000,000 to 49,999,999 DC - 50,000 to 74,000
3A - 1,000,000 to 9,999,999 DD - 35,000 to 49,999
2A - 750,000 to 999,999 EE - 20,000 to 34,999
1A - 500,000 to 749,000 FF - 10,000 to 19,999
BA - 300,000 to 499,999 GG - 5,000 to 9,999
BB - 200,000 to 299,999 HH - up to 4,999
CB - 125,000 to 199,999  

Composite Credit Appraisal as follows

  • High
  • Good
  • Fair
  • Limited
When these designations appear followed by a 2, 3, or 4 as a composite credit appraisal, it is an indication based on estimated figures.
  • FB - (foreign branch) indicates the headquarters of this company is located in a country other than Canada.
  • NLP - Indicates that this firm does not appear in other D&B publications.
  • DBN - rating is only assigned to D&B, and firms which are a part of the D&B group of companies.
  • -- (the blank symbol) should not be interpreted as indicating that credit should be denied. It simply means that the information available to D&B does not permit us to classify the company within our rating key and that further inquiry should be made before reaching a decision.

Special Events section alerts you to major changes within the company such as ownership, acquisitions, fires, bankruptcies -- all of which could affect your business decisions about a company.


D&B VIABILITY RATING
 

The D&B Viability Rating uses D&B’s proprietary analytics to compare the most predictive business risk indicators and deliver a highly reliable assessment of the probability that a company will go out of business, become dormant/inactive, or file for bankruptcy/insolvency within the next 12 months.

 
D&B Viability Rating Components
 
Viability Score
 

Viability Score is the first of four components within the D&B Viability Rating. It is a high-level risk indicator that assesses the probability that a company will no longer be in business within the next 12 months, compared to all Canadian businesses within the D&B database. A business is no longer viable when it goes out of business, becomes dormant inactive or files for bankruptcy/insolvency. The ranking ranges from 1 to 9 where 9 reflects the highest probability of becoming no longer viable and 1 reflects the lowest probability.

 

NOTE: The Viability Score is best used when ranking all businesses within your portfolio especially for identifying the most valuable prospects for Sales and Marketing.

 
Portfolio Comparison
 

Portfolio Comparison is the second of four components within the D&B Viability Rating. Portfolio Comparison is a more detailed risk indicator that assesses the viability of a company compared to similar businesses within the same model segment which are determined by the amount and type of data available. A business is no longer viable when it goes out of business, becomes dormant/inactive or files for bankruptcy/insolvency. Every business within the D&B database falls into 1 of the following 4 model segments:

  • Large Business with Established Trade Payments
  • Large Business with Firmographics and Business Activity
  • Small to Medium Business with Established Trade Payments or
  • Small to Medium Business with Firmographics and Business Activity

The Portfolio Comparison ranking ranges from 1 to 9 where 9 reflects the highest probability of becoming no longer viable and 1 reflects the lowest probability.

 

NOTE: The Portfolio Comparison is best used when analyzing the individual risk level of a company for Credit Risk Management purposes.

 
Data Depth Indicator
 

Data Depth Indicator is the third of four components within the D&B Viability Rating. The Depth of Data Indicator presents the level of data that is used to generate the Viability Score and Portfolio Comparison. Data depth assists in the assessment of whether a company will no longer be viable and includes the following:

  • Commercial Trading Activity
  • Firmographics

The level of data is represented by a letter on a scale of A – G where A reflects the greatest level of predictive data to make a highly reliable assessment of company viability, and G reflects a minimal level of data which can be considered descriptive. The more comprehensive the data, the more precise the overall D&B Viability Rating becomes. If a company has been placed in the Special Category, a letter ranging from H – N will be assigned to identify the specific reason. Reference the chart below for details.

 
Rating Description
A Rich Firmographics and Extensive Commercial Trading Activity
B Rich Firmographics and Partial Commercial Trading Activity
C Basic Firmographics and Partial Commercial Trading Activity
D Rich Firmographics and Sparse Commercial Trading Activity
E Basic Firmographics and Sparse Commercial Trading Activity
F Rich Firmographics Only
G Basic Firmographics Only
 
Rating Special Category Description
H Out of Business - Business is considered inactive due to Bankruptcy, Insolvency, Merger/Acquisition or absence of confirmed location.
I Unable to Confirm Designation - D&B is unable to confirm active operations at a specific location due to the business showing limited to no business activity and multiple signs of inactivity (e.g. disconnected phone, vacant address, no longer in a telephone directory etc.)
J Bankruptcy - Business has filed for Chapter 11 bankruptcy and the plan of reorganization is not yet confirmed. (Not applicable to Canadian companies).
K High Risk (Severe Risk) - Business displays characteristics of misrepresentation.
L Self Reported Duns Support Record - Business' request for a DUNs number requires an investigation or confirmation of information from D&B. (Not applicable to Canadian companies).
M Business Deterioration (Severe Risk) - Business displays characteristics of financials distress, including signs of current or imminent business failure or operating difficulty. (Not applicable to Canadian companies).
N Insolvency - Business or Management has insufficient assets to meet debts and obligations. See Public Records for further details.
 
Company Profile
 

Company Profile is the fourth of four components within the D&B Viability Rating. The Company Profile describes a company based on a combination of 4 categories:

  • Financial Data
  • Trade Payments
  • Company Size
  • Years in Business

A company is characterized by a letter which ranges from A - X; with each letter representing a combination of the 4 categories that make up the company’s profile. For example, A describes a company with a comprehensive level data, which has been in business 5+ years, with 50+ employees or $500K+ in Sales, while X reflects a company with a minimal data, in business <5 years, with <10 employees and <$10K in Sales. Z reflects a Subsidiary.

 
Ranking Financial Data Trade Payments Company Size Years in Business
A Available Refer to Data Depth Large: Employees: 50+ or Sales: $500K+ Established: 5+
B Available Refer to Data Depth Large: Employees: 50+ or Sales: $500K+ Young: <5
C Available Refer to Data Depth Medium: Employees: 10-49 or Sales: $100K-$499K Established: 5+
D Available Refer to Data Depth Medium: Employees: 10-49 or Sales: $100K-$499K Young: <5
E Available Refer to Data Depth Small: Employees: <10 and Sales: <$10K or Missing Established: 5+
F Available Refer to Data Depth Small: Employees: <10 and Sales: <$10K or Missing Young: <5
G Not Available Available: 3+Trade Large: Employees: 50+ or Sales: $500K+ Established: 5+
H Not Available Available: 3+Trade Large: Employees: 50+ or Sales: $500K+ Young: <5
I Not Available Available: 3+Trade Medium: Employees: 10-49 or Sales: $100K-$499K Established: 5+
J Not Available Available: 3+Trade Medium: Employees: 10-49 or Sales: $100K-$499K Young: <5
K Not Available Available: 3+Trade Small: Employees: <10 and Sales: <$10K or Missing Established: 5+
L Not Available Available: 3+Trade Small: Employees: <10 and Sales: <$10K or Missing Young: <5
M Not Available Available: 1-2 Trade Large: Employees: 50+ or Sales: $500K+ Established: 5+
N Not Available Available: 1-2 Trade Large: Employees: 50+ or Sales: $500K+ Young: <5
O Not Available Available: 1-2 Trade Medium: Employees: 10-49 or Sales: $100K-$499K Established: 5+
P Not Available Available: 1-2 Trade Medium: Employees: 10-49 or Sales: $100K-$499K Young: <5
Q Not Available Available: 1-2 Trade Small: Employees: <10 and Sales: <$10K or Missing Established: 5+
R Not Available Available: 1-2 Trade Small: Employees: <10 and Sales: <$10K or Missing Young: <5
S Not Available Not Available Large: Employees: 50+ or Sales: $500K+ Established: 5+
T Not Available Not Available Large: Employees: 50+ or Sales: $500K+ Young: <5
U Not Available Not Available Medium: Employees: 10-49 or Sales: $100K-$499K Established: 5+
V Not Available Not Available Medium: Employees: 10-49 or Sales: $100K-$499K Young: <5
W Not Available Not Available Small: Employees: <10 and Sales: <$10K or Missing Established: 5+
X Not Available Not Available Small: Employees: <10 and Sales: <$10K or Missing Young: <5
Z Subsidiary
 
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PAYDEX
Definition: The D&B Paydex is a unique, dollar-weighted indicator of payment performance based on up to 650 payment experiences as reported to D&B by trade references. The D&B Paydex gives an overview how a company has been paying its bills, within or beyond the agreed terms, as reported to D&B. By comparing the Paydex score against the Paydex Key, you can quickly estimate how this company pays its bills.







Paydex Key

100 = Anticipated
90 = Discount
80 = Prompt
70 = Slow 15 days beyond terms
60 = Slow 20 - 25 days beyond terms
50 = Slow 30 days beyond terms
40 = Slow 60 days beyond terms
30 = Slow 90 days beyond terms
20 = Slow 120 days beyond terms
10 = Slow 120 + days beyond terms
1 = Slow 120 + days beyond terms
Back to Risk Analysis – Paydex Section

COMMERCIAL CREDIT SCORE
 
Definition
D&B Commercial Credit Score predicts the likelihood that a company will pay its bills in a severely delinquent manner within the next 12 months based on the information in Dun & Bradstreet’s files. A severely delinquent firm is defined as a business with at least 25% of its payments slow and at least 20% of its payments 90 days or more past due or one or more financial embarrassment or 20% or more payment experiences with negative comments.
 
Commercial Credit Raw Score for this company: 0
Raw Score on a scale from 101 to 690, where 101 is the worst (high probability of delinquent payment) and 690 is the best (low probability of delinquent payment).

  • Percentile from 1 to 100, where 1 is the worst and 100 the best.
  • Risk Class from 1 to 5, where 5 is the worst and 1 is the best.
 
Performance Distribution
Probabilities
Performance Table


Back to Risk Analysis – Commercial Credit Score Section

FINANCIAL STRESS SCORE
 
Definition
The Financial Stress Score predicts the likelihood of a firm ceasing business over the next 12 months without paying all creditors in full, or reorganizing or obtaining relief from creditors under provincial/federal law. Scores are calculated using a statistically valid model derived from D&B’s extensive data files.
 
Financial Stress Raw Score for this company: 0
Raw Score on a scale from 1001 to 1890, where 1001 is the worst (high probability of failure) and 1890 is the best (low probability of failure).
Percentile from 1 to 100, where 1 is the worst and 100 the best.
Stress Class from 1 to 5, where 5 is the worst and 1 is the best
 
Performance Distribution
Probabilities
Performance Table
Back to Risk Analysis – Financial Stress Score Section

Financial Ratios
SOLVENCY

Quick Ratio = (Current Assets – Inventory) / Current Liabilities
This ratio reveals the protection afforded short-term creditors in the cash or near-cash assets. It shows the number of dollars of liquid assets available to cover each dollar of current debt. Any time this ratio is as much as 1 to 1 (1.0) the business is said to be in a liquid condition. The larger the ratio the greater the liquidity.

Current Ratio = Current Assets / Current Liabilities
This ratio measures the degree to which current assets cover current liabilities. The higher the ratio the more assurance exists that the retirement of current liabilities can be made. The Current Ratio measures the margin of safety available to cover any possible shrinkage in the value of current assets. Normally a ratio of 2 to 1 (2.0) or better is considered good

Current Liabilities to Net Worth = Total Current Liabilities / Net Worth x 100%
This contrasts the funds that creditors temporarily are risking with the funds permanently invested by the owners. The smaller the net worth and the larger the current liabilities, the less security there is for the creditors. Care should be exercised when selling to any firm with current liabilities exceeding two-thirds (66.6%) of net worth.

Current Liabilities to Inventory = Total Current Liabilities / Inventory x 100%
This indicates the extent to which the business relies on funds from the disposal of unsold inventories to meet its debts. This ratio combined with Net Sales to Inventory indicates how management controls inventory. It is possible to have decreasing liquidity while maintaining consistent sales-to-inventory ratios. Large decreases in sales with corresponding increases in inventory levels can cause an inappropriate rise in current liabilities if growth is not made wisely.

Total Liabilities to Net Worth = Total Liabilities / Net Worth x 100%
The effect of long-term (funded) debt on a business can be determined by comparing this ratio with Current Liabilities to Net Worth. The difference will pinpoint the relative size of long-term debt, which, if sizable, can burden a firm with substantial interest charges. In general, total liabilities should not exceed net worth (100%) since in such cases creditors have more at stake than the owners.

Fixed Assets to Net Worth = Fixed Assets / Net Worth x 100%
The proportion of net worth that consists of fixed assets will vary greatly from industry to industry but generally a smaller proportion is desirable. A high ratio is unfavorable because heavy investment in fixed assets indicates that either the concern has a low net working capital and is overtrading or has utilized large funded debt to supplement working capital. Also, the larger the fixed assets, the bigger the annual depreciation charge that must be deducted from the income statement. Normally, fixed assets above 75 percent of net worth indicate possible over-investment and should be examined with care

EFFICIENCY

Collection Period (days) = Accounts Receivable / Sales X 365 days
The quality of the receivables of a company can be determined by this relationship when compared with selling terms and industry standards. In some industries where credit sales are not the normal way of doing business, the percentage of cash sales should be taken into consideration. Generally, where most sales are for credit, any collection period more than one-third over normal selling terms (40.0 for 30-day terms) is indicative of slow moving receivables. When comparing the Collection Period of one concern with that of another, allowance should be made for possible variations in selling terms.

Sales to Inventory = Sales / Inventory
Inventory control is a prime management objective since poor controls allow inventory to become costly to store, obsolete or insufficient to meet demands. The sales to inventory relationship is a guide to the rapidity at which merchandise is being moved and the effect on the flow of funds into the business. Although low figures are usually the biggest problem, as they indicate excessively high inventory levels, extremely high turnovers might reflect insufficient merchandise to meet customer demands and result in lost sales.

Assets/Sales = Total Assets / Sales x 100%
This ratio ties in sales and the total investment that is used to generate those sales. Abnormally low percentages (above the upper quartile) can indicate overtrading which may lead to financial difficulties if not corrected. Extremely high percentages (below the lower quartile) can be the result of overly conservative or poor sales management, indicating a more aggressive sales policy may be required.

Sales to Net Working Capital = Sales / Net Working Capital
This relationship indicates whether a company is overtrading, or conversely, carrying more liquid assets than required for its business volume. Companies with substantial sales gains often reach a level where their working capital becomes strained. Even if they maintain an adequate total investment for the volume generated (Assets to Sales), the investment may be so centered in fixed assets or other non-current items that it will be difficult to continue meeting all current obligations without additional investment or a reduction in sales.

Accounts Payable to Sales = Accounts Payable / Sales x 100%
This ratio measures how the company is paying its suppliers in relation to the transaction volume. An increasing percentage, or one larger than the industry standard, indicates the firm may be using suppliers to help finance operations. This ratio is especially important to short-term creditors since a high percentage problems in paying vendors.

PROFITABILITY
Return on Sales = Net Profit After Taxes / Sales x 100%
This reveals the profit earned per dollar of sales and therefore measures the efficiency of the operation. Return must be adequate for the firm to be able to achieve satisfactory profits for its owners. This ratio is an indicator of the firm’s ability to withstand adverse conditions such as falling prices, rising costs and declining sales.

Return on Assets = Net Profit After Taxes / Total Assets x 100%
This ratio is the key indicator of profitability for a firm. It matches operating profits with the assets available to earn a return. Companies efficiently using their assets will have a relatively high return while less well run businesses will be relatively low.

Return on Net Worth = Net Profit After Taxes / Net Worth x 100%
This ratio is used to analyze the ability of the firm’s management to realize an adequate return on the capital invested by the owners of the firm. Tendency is to look increasingly to this ratio as a final criterion of profitability. Generally, a relationship of at least 10 percent is regarded as a desirable objective for providing dividends plus funds for future growth.

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