tell some distress signals of a company

重点关注第 8， 15， 尤其 15 中提到的细节。

Financial Distress Signals
1. Consistent or Widening Losses
Repeated net losses over several quarters or years.

Negative cash flow from operations.

2. Declining Revenue
Falling sales over time can indicate loss of market share, outdated products, or weakening demand.

3. High or Rising Debt Levels
Excessive leverage (debt-to-equity ratio rising).

Inability to meet interest or principal payments (interest coverage ratio < 1).

4. Negative Working Capital
Current liabilities consistently exceeding current assets.

Difficulty paying short-term obligations.

5. Auditor Warnings
“Going concern” warnings in audit reports.

Frequent changes in auditors can also be a red flag.

Operational Distress Signals
6. Inventory Build-Up
Unsold inventory piling up may indicate slowing demand or poor forecasting.

7. Delayed Payments
Delays in paying suppliers or employees.

Stretching accounts payable timelines significantly.

8. Frequent Management Turnover
High turnover in senior leadership (CEO, CFO) can signal internal instability or strategic disagreement.

9. Layoffs or Cost-Cutting Initiatives
Mass layoffs or aggressive cost-cutting without clear long-term strategy.

Market-Based Signals
10. Falling Stock Price
A sustained, sharp decline in share price relative to peers or the market.

11. Credit Downgrades
Downgrades from rating agencies (e.g., Moody’s, S&P) can indicate increased risk of default.

12. Deteriorating Investor Sentiment
Insider selling, lack of institutional investor interest, or poor analyst coverage.

Strategic and Legal Red Flags
13. Asset Sales or Fire Sales
Selling core assets or divisions to raise cash may signal liquidity issues.

14. Regulatory or Legal Troubles
Ongoing lawsuits, fines, or investigations from regulators.

15. Unusual Financing Moves
Rights issues, high-interest loans, or issuing deeply discounted shares or convertible debt may suggest funding trouble.

Example:
A company with declining sales, increasing debt, and a rights issue to raise funds could be signaling distress, especially if the rights issue is deeply discounted and not backed by solid growth plans.