First, the usual signs of a company just before bankruptcy.

1. The balance sheet in the IR materials shows a lot of debt

Once it exceeds roughly 80%, it is a danger zone.

2. The income statement in the IR materials keeps showing losses

Continuing losses when you look at company profit are a dangerous sign.

3. Operating cash flow in the IR materials keeps being negative

Operating cash flow is what you look at to see the numbers of the core business.

4. There are more meetings about sales

When meetings increase, danger signs are starting to appear.

5. The company issues corporate bonds

Sometimes companies issue private bonds for employees.

6. Elite talent and administrative departments start leaving

Elite people and people who manage the numbers, such as accounting, leave first.

7. It becomes hard to reach the president

They are often out raising money, so they become hard to contact.

8. Excessive cost cutting

Pointless cost-cutting projects are a dangerous sign.

9. Salary payments start being delayed

Once salaries start being paid late, it is finally serious.

Next, the programmer’s version: how to spot a company headed for bankruptcy.

1. There is a lot of code without test code

Once it exceeds roughly 80%, it is a danger zone.

2. Commit frequency is dropping

A decline in commits is a dangerous sign.

3. Meaningless commits keep appearing

Source code is what you look at to see the numbers of the core business.

4. There are more meetings about progress

When meetings increase, danger signs are starting to appear.

5. Overtime happens

Sometimes people also work on holidays.

6. Elite talent and project managers start leaving

Elite people and people who manage schedules leave first.

7. It becomes hard to reach the project manager

They are often busy contacting people about delayed deadlines, so they become hard to reach.

8. Excessive consecutive workdays

Pointless consecutive work is a dangerous sign.

9. Programmers start taking sick leave

Once programmers start taking sick leave, it is finally serious.