Which company could lose it all in the blink of an eye? A new infographic named Risk Assessment by MeetTheBoss.tv brings the Forbes Risk List to life, highlighting the biggest companies that are having the toughest time in our current economy. Companies ranked on the Aggressive end have been more likely to suffer lawsuits or financial distress, meaning they’re also more likely to see a drop in equity, or worse.
For most companies, the chart give a pretty rough and dirty approximation–basically looking at revenues against one-time massive expenses such as capital expansion. For example, you’ll see MGM Mirage’s massive spending gamble on CityCenter holding court in the Very Aggressive category. Sometimes, there are wildcards like insurance claims or court cases–expect to see BP blowing up here next year. But usually it’s just big companies spending money they didn’t earn this year, and thus taking on new debt.
For the handful of retailers on this list, risk makes sense; they could gain big when the economy improves. But for some of the other industries it’s harder to understand–so many hospitality corporations are represented it makes you wonder if hotels can indeed absorb all that financial stress. The x-factor in all this, of course, is that companies can probably still hide expenses through offshore accounting. How much are they really putting on the line? To wager a guess would be, frankly, too risky.
Click here to see the full infographic.