Most trustworthy companies in Iowa
Friday, April 12, 2013 7:00 AM
Four Iowa-based publicly traded companies were recently recognized among the 100 Most Trustworthy Companies by Forbes magazine, and three of those companies were among the 10 businesses nationwide receiving the highest scores achieved this year - 99 out of a possible 100 points.
Major risk categories evaluated by Forbes:
• corporate governance events
(consecutive earnings growth, board
independence, officer changes)
• high risk events (mergers, dive-
stitures, employee growth)
• revenue recognition
• expense recognition
• asset-liability recognition
Casey’s General Stores Inc., based in Ankeny, and Des Moines-based EMC Insurance Group Inc. both received scores of 99, as did Cedar Rapids-based United Fire Group Inc. Their ratings don’t necessarily reflect what their customers think of them. Rather, the ratings put them among the top 15 percent of “conservative” companies deemed to have the lowest risk for fraudulent activity.
To create the list, Forbes contracted with GMI Ratings, which specializes in applying nontraditional risk measures for financial analysis. GMI examined more than 8,000 companies traded on U.S. exchanges. To rank the companies, GMI analyzed more than 60 governance and forensic accounting measures.
“We think it’s important to recognize that in this environment of negativity, there are companies that do a consistently good job of managing their business.” said James Kaplan, GMI’s vice chairman and CEO. “Also, we have found evidence that, on balance, the most trustworthy companies outperform their peers over the long term. Of course the greatest benefit to a well-managed company is that their risk of negative events is minimized.”
The Depot at 4th, 100 4th Street, Des Moines, Iowa 50309 | (515) 288-3336 | © 2014 Business Record. All Rights Reserved. | Legal disclaimer