Managing Your Cash Flow

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Which retailers are in most trouble?

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The table shows H-Scores® for each of the retailers listed. This is a financial health rating based on their published accounts and calculated from the inter-action of seven key financial ratios. It measures businesses out of a maximum of 100. 

Any H-Score of 25 or below puts the company in the Warning Area, where statistically one in four will either file for insolvency or undergo a restructuring within three years. Insolvency is not inevitable, but companies in the Warning Area are financially vulnerable and without corrective management action they are at greater than average risk of failure.

In these tough times for retailers, the management of the retailers who score lowest in the table, such as Clinton Cards, Carpetright & Debenhams will need to exploit all opportunities available to them to boost profits, improve working capital management, reduce gearing and move away from excessive dependence on external debt so that their overall financial health becomes more robust

SCH 120221 NRH most indebted retailers (by gearing).xls

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