Bankruptcy-Prone Industries
Wednesday, June 17th, 2009With all of the talk of large bankruptcy filings, Sageworks released a list of 10 types of private companies that are most likely to file for bankruptcy in the coming months. The list is based on the average debt-to-equity ratio in the industry over the last 12 months. A high debt-to-equity ratio generally means that a company has been aggressive in using debt to finance growth.
| 10 Bankruptcy-Prone Industries | |||
| According to Sageworks, Inc. Figures are based on the last 12 Months. | |||
| NAICS | Industry | Debt/Equity Ratio | Net Profit % Change |
| 4411 | Automobile Dealers | 4.45 | -19.38% |
| 4412 | Other Motor Vehicle Dealers | 4.42 | -10.75% |
| 6231 | Nursing Care Facilities | 4.11 | -1.37% |
| 7211 | Hotels & Traveler Accommodations | 3.94 | 6.61% |
| 4511 | Sporting Goods & Hobby Stores | 3.91 | 1.67% |
| 2372 | Land Development & Subdivision Companies | 3.85 | -41.63% |
| 5616 | Investigation & Security Services | 3.48 | -4.27% |
| 2361 | Residential Building Companies | 3.45 | -20.87% |
| 3363 | Motor Vehicle Parts Manufacturers | 3.45 | -15.97% |
| 3231 | Printing Companies | 3.02 | -12.95% |
| *Sageworks is the leading provider of private company data. | |||