The prominent balance sheet leverage or debt ratio is the debt-to-equity ratio.
Liquidity ratios measure the short-term ability of a company to pay its maturing obligations and unexpected cash needs. Balance sheet liquidity ratios include the current ratio and quick ratio.
Four documents—the balance sheet, income statement (or profit and loss statement), cash flow statement, and statement of owner’s equity—make up what the financial world calls “financial statements.”
Many of the new produce and transportation businesses Blue Book lists have a limited number of personnel and often do not have a financial person on staff, such as a bookkeeper or controller.
It’s important for company owners to know what’s in their company’s credit profile, and this includes the Blue Book score.
Companies with a score of 800 or greater have less than 1% probability of going out of business owing money within a 12-month period.
So how are Blue Book scores derived? In one word—data.
One of the more common customer or trade questions Blue Book Services frequently answers is, “Why did my company’s Blue Book Score change?” And, without pause, the inquirer often follows up with, “I pay everyone fast—my score shouldn’t be this low!”
So what really happened here? Why did this century-old company close its doors?
In the summer of 2019, H. Brooks and Company, LLC, New Brighton, MN, had entered into a definitive agreement to sell its stock and become a wholly owned subsidiary of New Harvest Foods, Inc.