Williams F1 is Financially Best Positioned

Dun & Bradstreet, the oldest credit rating agency in the world, has created a Formula One index that ranges from 1 to 100 and explains the financial stability of Formula 1 teams. ‘In calculating D&B, demographic and financial data as well as data on payment delays of the teams’ obligations were taken into account. On a scale from 1 to 100, a value of 1 indicates an extremely high possibility of bankruptcy, while a value of 100 indicates minimal risk,’ said Veljko Drakulić, director of Bonline.

 The financial stability of F1 teams has deteriorated at the beginning of the new season. This is a result of high investments that have put pressure on the teams’ financial reports. Only Williams and Toro Rosso are financially more stable compared to the previous year due to strict cost control. On the D&B F1 index, Williams occupies the first place, achieving a maximum score of 100 points for the first time. Following them are Sauber with 96 points, Toro Rosso with 92, Mercedes-Benz with 85, and Red Bull with 83 points. 

The best teams are financially stable, but they are late in paying obligations: Ferrari (76), Renault (70), and McLaren (51) are at the bottom of the table according to financial data. McLaren stands out particularly, having had 78 points last year, but due to reduced investment from Mercedes, it has fallen to 51 points. These three teams are at the bottom of the rankings due to poor payments to their suppliers. Ferrari’s creditors have to wait 16 days after the agreed deadline to receive their funds, while last year they had to wait 11 days. On the other hand, Renault’s team is late in payments by a maximum of five days after the agreed deadlines. McLaren is trying to mitigate its poor financial position by improving payments compared to the previous year. Their average delay has decreased from 26 days (spring 2009) to 14 days from the agreed deadlines.

The engagement of team co-owner Frank Williams appears financially solid. His team has achieved a maximum score of 100 points, attributed to high creditworthiness and an ambitious reduction of the team’s debts. The consolidation following BMW’s exit, which was part of the team from 1999 to 2005, seems to be completed, similar to that related to the other former partner BMW Sauber, which occupies second place in the rankings.

New teams are still too small to determine their financial stability. Lotus and HRT are just happy that both of their drivers finished the race in Malaysia, so determining financial stability is not yet possible. It is necessary to wait some time and see how the new teams will successfully or unsuccessfully race and what position they will occupy.

After Adrian Sutil’s fifth place, the Force India index improved from just one point to the current 13. However, recent data cannot confirm whether the improvement in Force India’s payment capability is related to Adrian Sutil’s fifth place finish. Certainly, the improvement is more than commendable, as last year suppliers had to wait for payment for as long as 72 days after the agreed deadline.  (source: Bonline)