Recognizing the Signs of Financial Distress

Diagnosing financial distress, and the ability to address the relevant issues, is a necessary role of board members and senior executives.

14 minute read January 01, 2018 at 12:02 AM

Steven Strom

Recognizing the Signs of Financial Distress

Financial distress is when a company is vulnerable to the ability to maintain its financial commitments related to operating expenses (i.e., timely vendor payments, leases and payroll), debt holders (i.e., lenders, noteholders), and capital expenditures.

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