Creditsafe warns that bankruptcy may be imminent for WeWork
- WeWork’s negative debt-to-equity ratio suggests bankruptcy is imminent
- Total shareholder equity is negative $3.56 billion
- Total debt is $2.9 billion
- Debt-to-equity ratio is -81.7%
- WeWork plans to file for bankruptcy as early as next week
- WeWork’s stock plunged 46.5% on Wednesday
- WeWork reported negative cash flow of $530 million in the first six months of 2023
- Days Beyond Terms (DBT) for WeWork has increased from 67 to 68
- Delinquent payments increased by 631.82% over the past 12 months
- WeWork’s financial troubles could impact suppliers and vendors
WeWork Inc. is facing the possibility of bankruptcy as its negative debt-to-equity ratio raises concerns about the company’s financial stability. With a total shareholder equity of negative $3.56 billion and a total debt of $2.9 billion, WeWork’s debt-to-equity ratio stands at -81.7%. This high risk indicator suggests that bankruptcy may be on the horizon. In fact, WeWork is reportedly planning to file for bankruptcy as early as next week, following a significant drop in its stock price. The company’s negative cash flow of $530 million in the first half of 2023 further adds to its financial woes. Additionally, WeWork’s Days Beyond Terms (DBT) has increased from 67 to 68, indicating a larger cash flow problem. Delinquent payments have also surged by 631.82% over the past year, potentially impacting suppliers and vendors. The implications of WeWork’s financial troubles extend beyond the company itself, posing a domino effect on its business partners.
Factuality Level: 8
Factuality Justification: The article provides specific information about WeWork’s debt-to-equity ratio, cash flow, and delinquent payments, which are supported by data from Creditsafe. It also mentions WeWork’s statement about the doubt regarding its ability to continue as a going concern. However, the article does not provide a balanced perspective by including any counterarguments or alternative viewpoints.
Noise Level: 3
Noise Justification: The article provides relevant information about WeWork’s high negative debt-to-equity ratio and the potential implications of bankruptcy. It includes quotes from a spokesperson for Creditsafe and mentions the company’s cash flow and delinquent payments. However, the article lacks in-depth analysis, data, or examples to support its claims. It also does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: WeWork Inc.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses WeWork Inc.’s high negative debt-to-equity ratio, suggesting the possibility of bankruptcy. This information is relevant to financial markets and the company itself.
Public Companies: WeWork (WE)
Key People:
Reported publicly:
www.marketwatch.com 
