DPC Holdings PLC — financial distress indicators
Financial-health summary
DPC Holdings PLC's reported numbers place it in the 'Watch' financial-health band (distress score 44/100). The main indicators are liabilities exceed assets (negative equity), ohlson o-score signals likely failure and current liabilities exceed current assets. Independently, the Ohlson accounting model puts its 1-year failure probability at 96% and the market-implied (Merton) default probability is 0.0%. In its favour: cash on hand covers all debt (net-cash balance sheet).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Total liabilities are 1.25× total assets.
Balance-sheet insolvency test: debts exceeding the fair value of assets is the statutory definition of 'insolvent' in 11 U.S.C. §101(32).
O-score 3.31 → model probability 96%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Current ratio is 0.84.
Short-term obligations exceed short-term resources — the company relies on rolling over credit.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
1 severe and 0 moderate distress-related headlines in the last 6 months.
Headlines are corroborating evidence only; they are weighted lightly and never drive a flag alone.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Operating cash flow is positive over the latest 12 months.
- Revenue still growing (+12% YoY).
📰 Recent news scan
- delistPE-backed UK companies shirk IPOs while delistings mountYahoo Finance · 2026-08-10
- 3 Aerospace Stocks Tied To F 35 Engine Demand Investors Should WatchYahoo Finance · 2026-09-18
- Doncasters Completes Debt RefinancingYahoo Finance · 2026-09-08
- An Under the Radar Rare Earth Comment From Elon Musk Could Upend Another IndustryYahoo Finance · 2026-09-08
- GE's CPP Deal Isn't About EPS Accretion, Says Jefferies — It's 'An Impactful Move In The Blades & Vanes War Games'Yahoo Finance · 2026-09-08
- DPC Holdings Receives Upgrade From Moody’s to Ba2 Outlook Upgraded to PositiveYahoo Finance · 2026-07-31
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do DPC Holdings PLC's financial-health indicators show?
As of 2026-10-08, DPC Holdings PLC's public financial data places it in the 'Watch' band with a distress score of 44/100, driven by liabilities exceed assets (negative equity), ohlson o-score signals likely failure and current liabilities exceed current assets. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is DPC Holdings PLC's financial distress score?
44/100 ('Watch'). Ohlson O-score 3.31 (model 1-year failure probability 96%). Merton distance-to-default 3.98 σ (model default probability 0.0%).
What works in DPC Holdings PLC's favour?
Cash on hand covers all debt (net-cash balance sheet). Operating cash flow is positive over the latest 12 months. Revenue still growing (+12% YoY).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
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Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.