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Regularly updated data – Crucial to assess extreme situation

by | Apr 9, 2021 | Finance | 0 comments

In our modern, tech-driven world, life seems to be moving faster than ever. Things seem to be constantly shifting and changing, and this is especially true in the world of business. The corporate world seems to be full of ‘blink and you’ll miss it’ moments, now so more than ever. This has highlighted the importance of accurate, updated data for businesses to be able to make the best financial decisions possible.

There have been some excellent if devastating, examples of this kind of snap-change recently within the last week. The food delivery company, Deliveroo, publicly listed their company on the LSE on the 31st of March, and their share price immediately dropped from a healthy £3.10 per share at 8:00 am to just £2.87 by the time the clock hit 8:15. This had a significant effect on the valuation of the company and any creditors or lenders would be wise to review their relationship with Deliveroo with this new information in mind, especially considering the outstanding £18m that Deliveroo now owes to the investment banks involved in its initial public offering (IPO) despite its poor performance.

Another great example of this would be Plug Power’s recent ‘accounting error’. Plug Power, the hydroelectric giant that has seen a huge increase in interest over the last year, had to report a few weeks ago that they would not be able to file their annual report for 2020 due to an accounting error. The company also said that they would have to re-state accounts for their 2018 and 2019 fiscal years, causing mass panic for investors and creditors alike. However, despite these mistakes, the company retains a debt to equity ratio of 0.47 and a current ratio of 6.65. These up-to-date figures indicate that the company should still have enough liquidity to pay off previous financial obligations.

By looking at the most updated information possible, lenders and creditors can assess extreme situations like these with full confidence in the information provided. That’s why businesses rely on DataGardener for their informational needs. With DataGardener, you can track companies on your watch-list and be alerted to any major changes involving the business. DataGardener also provides some of the most accurate and updated information on UK listed companies that you can find, meaning your business can work safely in the knowledge that the data you’re using is as clean as it can be.


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