What are some of the warning signs that a company is going under?

Question

What are some of the warning signs that a company is going under?

Answer 1

If a company has debt they cannot restructure or meet the obligations, then watch out.  A high debt/equity ratio might signal this.  (No surprise the same thing hurts individuals as well)

Accounting irregularities and efforts to cook the books could suggest a problem (or an overzealous effort to manipulate the public which has it's own ethical issues)

If it's a store you have in your community, you might also simply notice the foot traffic there being worse and worse... that might signal something has changed.

Finally a business that had a competitive edge and has lost it and is not responding well could be due for problems.

Somewhat a joke, but I'd pass along this as well:  whatever you do.... never buy an airline stock.  :)

Answer 2

Five major signs:

Lay off employees

Cut Back hours of Employees

You see less business transactions

Can not pay their bills and suppliers are calling

Van not cover payroll and checks bouncing

I see it unfortunately these days only too often in this economy.

Good Luck