Tag: Management Assessment
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Would even the most experienced and confident underwriters struggle in this situation?
Recently we were talking about the benefit of hindsight when assessing company under-performance. We considered the recently reported challenges confronting of C&J Clark (Clarks Shoes). Today we have learned about a potential £25m overstatement of inventory by Ted Baker plc. Ted Baker is a very successful business, generating sales of over £600m. The balance sheet…
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Have underwriters lost the confidence to override credit decisions made by a computer?
There has been a plethora of company failures, profit warnings and strategic shortcomings reported in the financial press over the past few months. Many who have read these articles will have thought to themselves that hindsight is a wonderful thing. Hindsight does allow analysts to comment with authority. The challenging aspect of credit assessment is…