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Company Goodyear
First Calendar Year of Data 1980
Information Metric 1980 1981 1982
Income Statement
Sales 8,444 9,153 8,689
Cost of Goods Sold 6,637 7,160 6,756
Gross Profit 1,807 1,993 1,933
Operating Expenses
S, G & A Expenses 1264 1295.4 1300.3
R & D Expenses 0 0 0
Lease Expenses 0 0 0
Depreciation and Amortization 0 0 0
Other Operating Expenses 0 0 0
Operating Profit 543 698 633
Non-Operating Items
Other Non-operating Income (Expense) 36 11 19
Interest Income
Earnings Before Interest and Taxes (EBIT) 578 709 651
Interest Expense 227 230 191
Earnings Before Taxes (EBT) 352 480 460
Income Taxes 145 236 213
Income Before Extraordinary Items 207 244 248
Income from Extraordinary Items 24 16 17
Net Income 231 260 265
Preferred Dividends
Net Income available to Common Equityholders 231 260 265
Balance Sheet
Assets
Current Assets
Inventories 1,582 1,514 1,270
Accounts Receivable 1,144 1,204 1,312
Advance, Deposits, and Prepayments
Marketable Securities
Cash and Equivalents 68 72 83
Other Current Assets 62 67 85
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Total Current Assets 2,856 2,857 2,750
Fixed Assets (PPE)
Gross Fixed Assets 2,278 2,264 2,230
Accumulated Depreciation
Net Fixed Assets 2,278 2,264 2,230
Gross Intangible Assets 0 0 0
Accumulated Amortization 0 0 0
Net Intangible Assets
Preliminary Expenses
Investments 215 217 203
Others 19 16 11
Other Non-Current Assets 234 233 213
Total Assets 5,368 5,354 5,194
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable 524 481 437
Notes Payable 147 112 5
Short-term Loan 36 14
Accrued Expenses 234 257 257
Taxes Payable 284 298 312
Provision for Taxes
Proposed Dividend
Current Portion of Long-Term Loan
Other Current Liabilities 156 169 164
Total Current Liabilities 1,380 1,330 1,174
Long-Term Liabilities
Term Loan 1,241 1,158 1,037
Capital Leases
Deferred Taxes 203 204 203
Other Long-term Liabilities 177 221 256
Total Long-Term Liabilities 1,620 1,583 1,496
Preferred Stockholders' Equity
Preferred Stock and Others 0 0 0
Total Non-Current Liabilities 1,620 1,583 1,496
Commons Stockholders' Equity
Share Capital 2,303 2,375 2,457
Share Premium
Reserve and Surplus
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Retained Earnings
Share Money Deposit
Directors' Loan
Others 66 66 66
Total Common Stockholders' Equity 2,369 2,441 2,523
Total Liabilities and Stockholders' Equity 5,369 5,354 5,193
Difference -0.60 0.00 0.50
Indicators and Adjustments
Number of Common Shares 73 73 74
MV/BV
Year-end Stock Price 16.00 19.00 35.00
Market Value of Equity 1,160 1,378 2,583
Market Value of Debt
Market Value of Preferred Stock
Enterprise Value 4,092 4,219 5,170
Common Stockholders' Equity 2,369 2,441 2,523
Adjusted Common Stockholders' Equity 2,369 2,441 2,523
NWC 1,476 1,527 1,576
NWC 51 49
Adjusted NWC 1,591 1,581 1,498
Adjusted NWC -11 -83
Long-Term Debt 1,620 1,583 1,496
Short-Term Interest Bearing Debt 183 126 5
Current Portion of Long-Term Debt 0 0 0
Total Debt/Borrowed Fund 1,803 1,709 1,501
Capital Expenditure 249 303 302
Average Daily Expenditure 22 23 22
Ratio AnalysisActivity Ratios
Receivables Turnover (Times) 7.38 7.60 6.62
Inventory Turnover (Times) 4.19 4.73 5.32
Accounts Payable Turnover (Times) 12.67 14.89 15.46
Days Sales Outstanding 49 48 55
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Days of Inventory on Hand 87 77 69
Operating Cycle 136 125 124
Payment Deferral Period 29 25 24
Cash Conversion Cycle 108 101 100
Working Capital Turnover 5.72 6.09 5.60
Fixed Assets Turnover 3.71 4.03 3.87
Total Assets Turnover 1.57 1.71 1.65
Liquidity Ratios
Current Ratio 2.07 2.15 2.34
Quick Ratio 0.88 0.96 1.19
Cash Ratio 0.05 0.05 0.07
Defensive Interval Ratio (Days) 56 55 63
Solvency (Debt) Ratios
Debt-to-assets Ratio 0.34 0.32 0.29
Debt-to-capital Ratio 0.43 0.41 0.37
Debt-to-equity Ratio 0.76 0.70 0.59
Financial Leverage 2.27 2.19 2.06
Solvency (Coverage) Ratios
Interest Coverage Ratio 2.55 3.09 3.42
Debt Service Coverage Ratio 2.55 3.09 3.42
Profitability Ratios (Return on Sales)
Gross Profit Margin 21.4% 21.8% 22.2%
EBITDA Margin 6.8% 7.7% 7.5%
Operating Profit Margin 6.8% 7.7% 7.5%
Pre-tax Margin 4.2% 5.2% 5.3%
Net Profit Margin 2.7% 2.8% 3.0%
Profitability Ratios (Return on Investments)
Operating ROA 10.8% 13.2% 12.3%
ROA 4.3% 4.9% 5.0%
ROFA 10.1% 11.5% 11.8%
ROIntA #DIV/0! #DIV/0! #DIV/0!
ROE 9.7% 10.8% 10.7%
ROComE 9.7% 10.8% 10.7%
ROIC #VALUE! 17.0% 15.9%
MultiplesEV/EBITDA 7.07 5.95 7.94
Price/Earnings 5.03 5.29 9.75
EV/Sales 0.48 0.46 0.59
Price/Sales 0.14 0.15 0.30
Price/EV 0.28 0.33 0.50
Price/BVPS 0.49 0.56 1.02
Widely Monitored Ratios
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Current Ratio 2.07 2.15 2.34
Quick Ratio 0.88 0.96 1.19
Inventory Turnover 4.19 4.73 5.32
Average Collection Period 49 48 55
Fixed Asset Turnover 3.71 4.03 3.87
Total Asset Turnover 1.57 1.71 1.65
Debt Ratio 0.34 0.32 0.29
Debt-to-Equity 0.76 0.70 0.59
Times Interest Earned 2.55 3.09 3.42
Gross Profit Margin 21.4% 21.8% 22.2%
Operating Profit Margin 6.8% 7.7% 7.5%
Net Profit Margin 2.7% 2.8% 3.0%
Return on Total Assets (ROA) 4.3% 4.9% 5.0%
Return on Equity (ROE) 9.7% 10.8% 10.7%
EPS 3.18 3.59 3.59
P/E 5.03 5.29 9.75
EV/EBITDA 7.07 5.95 7.94
DuPont Sensitivity AnalysisROE Decomposition (7-Factor)
Base Case
Return on Equity (ROE) 9.74% 10.65% 10.34%
Financial Leverage 2.27 2.19 2.06
Return on Assets (ROA) 4.3% 4.9% 5.0%
Total Assets Turnover 1.57 1.71 1.65Net Profit Margin 2.7% 2.8% 3.0%
Tax Burden 0.66 0.54 0.58
Interest Burden 0.61 0.68 0.71
Operating Profit Margin 0.06 0.08 0.07
Effect of Non-operating Items 1.07 1.02 1.03
Effect of Operating Items 0.30 0.35 0.33
Gross Profit Margin 0.21 0.22 0.22
Sensitivity to Profit Margin
Net Profit Margin 2.7% 2.8% 3.0%
Total Assets Turnover 1.71 1.71 1.71Return on Assets (ROA) 4.7% 4.9% 5.2%
Financial Leverage 2.19 2.19 2.19
Return on Equity (ROE) 10.2% 10.6% 11.4%
% Return on Equity (ROE) 4.1% 7.2%
Mean 9.77%
Dispersion 9.11%
Sensitivity to Asset Turnover
Net Profit Margin 2.8% 2.8% 2.8%
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Total Assets Turnover 1.57 1.71 1.65
Return on Assets (ROA) 4.5% 4.9% 4.7%
Financial Leverage 2.19 2.19 2.19
Return on Equity (ROE) 9.8% 10.6% 10.3%
% Return on Equity (ROE) 8.5% -3.5%
Mean -1.20%
Dispersion 8.65%
Sensitivity to Financial Leverage
Net Profit Margin 2.8% 2.8% 2.8%
Total Assets Turnover 1.71 1.71 1.71
Return on Assets (ROA) 4.9% 4.9% 4.9%
Financial Leverage 2.27 2.19 2.06
Return on Equity (ROE) 11.0% 10.6% 10.0%
% Return on Equity (ROE) -3.2% -6.2%
Mean -2.95%
Dispersion 3.19%
Most Sensitive Factor of ROE Net Profit Margin
Risk AnalysisSales, Operating Profit and Earnings Volatility
Standard Deviation of Sales 675.87
Mean of Sales 9307.88
Coefficient of Variation of Sales 7.3%
Level of Sales Volatility Very Low
Standard Deviation of Operating Income 92.97
Mean of Operating Income 622.52
Coefficient of Variation of Operating Income 14.9%
Level of Operating Income Volatility Low
Standard Deviation of Earnings 77.20
Mean of Earnings 312.65
Coefficient of Variation of Earnings 24.7%
Level of Earnings Volatility Moderate
Leverage
% Sales 8% -5%
% EBIT 23% -8%
% Net Income 13% 2%
Degree of Operating Leverage (DOL) 2.69 1.62
Degree of Financial Leverage (DFL) 0.57 -0.21
Degree of Total Leverage (DTL) 1.53 -0.34
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Average DOL 2.70
Average DFL -3.82
Average DTL -10.31
Altman Z-Score Model
Company Type
Publicly Traded Manufacturer
Current Assets/Total Assets 0.53 0.53 0.53
Retained Earnings/Total Assets 0.00 0.00 0.00
EBIT/Total Assets 0.11 0.13 0.13
Market Value of Equity/Book Value of Debt 0.64 0.81 1.72
Sales/Total Assets 1.57 1.71 1.67
Z-Score 2.95 3.27 3.75
Zone Grey Safe Safe
% Gap between Z-Score and Distress Zone 63.1% 80.6% 107.4%
Probability of Default (5% P 90%) 36.9% 19.4% 5.0%
DISTRESS ZONE Z< 1.81 1.81 1.81
GREY ZONE Z< 2.99 2.99 2.99
Strategic Indicators
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16%
1983 1984 1985 1980 1981 1982 1983 1984
Common-Size Income Statement
9,736 10,241 9,585 100.0% 100.0% 100.0% 100.0% 100.0%
7,684 8,099 7,635 78.6% 78.2% 77.8% 78.9% 79.1%
2,052 2,142 1,950 21.4% 21.8% 22.2% 21.1% 20.9%
1333 1478.5 1469.6 15.0% 14.2% 15.0% 13.7% 14.4%
0 0 0 0.0% 0.0% 0.0% 0.0% 0.0%
0 0 0 0.0% 0.0% 0.0% 0.0% 0.0%
0 0 0 0.0% 0.0% 0.0% 0.0% 0.0%
0 0 0 0.0% 0.0% 0.0% 0.0% 0.0%
719 663 480 6.4% 7.6% 7.3% 7.4% 6.5%
-73 137 81 0.4% 0.1% 0.2% -0.7% 1.3%
0.0% 0.0% 0.0% 0.0% 0.0%
646 800 561 6.8% 7.7% 7.5% 6.6% 7.8%
117 127 105 2.7% 2.5% 2.2% 1.2% 1.2%
529 672 456 4.2% 5.2% 5.3% 5.4% 6.6%
259 270 155 1.7% 2.6% 2.4% 2.7% 2.6%
270 403 301 2.4% 2.7% 2.8% 2.8% 3.9%
35 111 0.3% 0.2% 0.2% 0.4% 0.0%
305 403 412 2.7% 2.8% 3.0% 3.1% 3.9%
0.0% 0.0% 0.0% 0.0% 0.0%
305 403 412 2.7% 2.8% 3.0% 3.1% 3.9%
Common-Size Balance Sheet
1,219 1,333 1,379 29.5% 28.3% 24.5% 20.4% 21.5%
1,527 1,370 957 21.3% 22.5% 25.3% 25.5% 22.1%
0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0%
111 143 139 1.3% 1.3% 1.6% 1.9% 2.3%
63 54 83 1.2% 1.2% 1.6% 1.1% 0.9%
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2,920 2,901 2,558 53.2% 53.4% 53.0% 48.8% 46.8%
2,819 3,037 4,025 42.4% 42.3% 42.9% 47.1% 49.0%
0.0% 0.0% 0.0% 0.0% 0.0%
2,819 3,037 4,025 42.4% 42.3% 42.9% 47.1% 49.0%
0 0 0 0.0% 0.0% 0.0% 0.0% 0.0%
0 0 0 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0%
227 223 339 4.0% 4.0% 3.9% 3.8% 3.6%
20 34 32 0.4% 0.3% 0.2% 0.3% 0.5%
247 257 370 4.4% 4.3% 4.1% 4.1% 4.2%
5,986 6,194 6,954 100.0% 100.0% 100.0% 100.0% 100.0%
593 583 657 9.8% 9.0% 8.4% 9.9% 9.4%
155 157 116 2.7% 2.1% 0.1% 2.6% 2.5%
42 39 35 0.7% 0.3% 0.0% 0.7% 0.6%
281 298 347 4.4% 4.8% 4.9% 4.7% 4.8%
257 289 232 5.3% 5.6% 6.0% 4.3% 4.7%
0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0%
204 192 219 2.9% 3.1% 3.2% 3.4% 3.1%
1,532 1,558 1,607 25.7% 24.8% 22.6% 25.6% 25.2%
0.0% 0.0% 0.0% 0.0% 0.0%
665 657 998 23.1% 21.6% 20.0% 11.1% 10.6%
0.0% 0.0% 0.0% 0.0% 0.0%
414 449 475 3.8% 3.8% 3.9% 6.9% 7.2%
297 294 302 3.3% 4.1% 4.9% 5.0% 4.7%
1,376 1,400 1,775 30.2% 29.6% 28.8% 23.0% 22.6%
0.0% 0.0% 0.0% 0.0% 0.0%
1,376 1,400 1,775 30.2% 29.6% 28.8% 23.0% 22.6%
3,016 3,171 3,507 42.9% 44.4% 47.3% 50.4% 51.2%
0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0%
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0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0%
62 65 64 1.2% 1.2% 1.3% 1.0% 1.0%
3,078 3,236 3,571 44.1% 45.6% 48.6% 51.4% 52.2%
5,986 6,194 6,953 100.0% 100.0% 100.0% 100.0% 100.0%
0.30 0.10 0.30
100 106 107
30.38 26.00 31.25
3,034 2,761 3,356
5,831 5,576 6,599
3,078 3,236 3,571
3,078 3,236 3,571
1,388 1,342 951
-188 -46 -391
1,473 1,395 963
-24 -79 -432
1,376 1,400 1,775
196 196 152
0 0 0
1,572 1,596 1,926
500 629 1,668
25 26 25
6.37 7.47 10.01
6.30 6.07 5.54
12.95 13.90 11.61
57 49 36
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58 60 66
115 109 102
28 26 31
87 83 71
6.57 7.50 8.36
3.86 3.50 2.71
1.74 1.68 1.46
1.91 1.86 1.59
1.07 0.97 0.68
0.07 0.09 0.09
66 58 44
0.26 0.26 0.28
0.34 0.33 0.35
0.51 0.49 0.54
1.94 1.91 1.95
5.51 6.28 5.34
5.51 6.28 5.34
21.1% 20.9% 20.3%
6.6% 7.8% 5.9%
6.6% 7.8% 5.9%
5.4% 6.6% 4.8%
3.1% 3.9% 4.3%
11.6% 13.1% 8.5%
5.5% 6.6% 6.3%
12.1% 13.8% 11.7%
#DIV/0! #DIV/0! #DIV/0!
10.9% 12.8% 12.1%
10.9% 12.8% 12.1%
14.9% 16.9% 10.9%
9.02 6.97 11.76
9.94 6.86 8.15
0.60 0.54 0.69
0.31 0.27 0.35
0.52 0.50 0.51
0.99 0.85 0.94
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1.91 1.86 1.59
1.07 0.97 0.68
6.30 6.07 5.54
57 49 36
3.86 3.50 2.71
1.74 1.68 1.46
0.26 0.26 0.28
0.51 0.49 0.54
5.51 6.28 5.34
21.1% 20.9% 20.3%
6.6% 7.8% 5.9%
3.1% 3.9% 4.3%
5.5% 6.6% 6.3%
10.9% 12.8% 12.1%
3.06 3.79 3.84
9.94 6.86 8.15
9.02 6.97 11.76
10.62% 12.66% 12.20%
1.94 1.91 1.95
5.5% 6.6% 6.3%
1.74 1.68 1.463.1% 3.9% 4.3%
0.58 0.60 0.90
0.82 0.84 0.81
0.07 0.06 0.05
0.90 1.21 1.17
0.35 0.31 0.25
0.21 0.21 0.20
3.1% 3.9% 4.3%
1.71 1.71 1.715.4% 6.7% 7.3%
2.19 2.19 2.19
11.7% 14.7% 16.1%
2.9% 25.4% 9.3%
2.8% 2.8% 2.8%
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1.74 1.68 1.46
5.0% 4.8% 4.1%
2.19 2.19 2.19
10.9% 10.5% 9.1%
5.7% -3.5% -13.3%
2.8% 2.8% 2.8%
1.71 1.71 1.71
4.9% 4.9% 4.9%
1.94 1.91 1.95
9.4% 9.3% 9.5%
-5.5% -1.6% 1.7%
12% 5% -6%
-1% 24% -30%
15% 32% 2%
-0.06 4.58 4.66
-20.74 1.34 -0.08
1.27 6.16 -0.36
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0.49 0.47 0.37
0.00 0.00 0.00
0.11 0.13 0.08
1.93 1.73 1.74
1.63 1.65 1.38
3.72 3.68 3.13
Safe Safe Safe
105.8% 103.2% 73.0%
5.0% 5.0% 27.0%
1.81 1.81 1.81
2.99 2.99 2.99
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1981 1982 1983 1984
Growth Rate
8.4% -5.1% 12.1% 5.2%
7.9% -5.6% 13.7% 5.4%
10.3% -3.0% 6.2% 4.4%
2.5% 0.4% 2.5% 10.9%
0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%
28.6% -9.3% 13.6% -7.7%
-68.1% 62.3% -491.9% -288.4%
22.6% -8.2% -0.7% 23.8%
1.1% -16.9% -38.5% 8.5%
36.4% -4.0% 14.9% 27.1%
62.8% -9.7% 21.6% 4.2%
18.0% 1.5% 9.1% 49.1%
-31.7% 4.9% 104.1% -100.0%
12.8% 1.7% 15.3% 31.9%
12.8% 1.7% 15.3% 31.9%
-4.3% -16.1% -4.1% 9.4%
5.3% 8.9% 16.4% -10.3%
6.0% 15.9% 33.4% 29.1%
7.4% 27.0% -25.6% -14.9%
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0.0% -3.7% 6.2% -0.7%
-0.6% -1.5% 26.4% 7.7%
-0.6% -1.5% 26.4% 7.7%
0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%
0.8% -6.6% 12.1% -1.7%
-16.6% -34.2% 84.0% 73.3%
-0.6% -8.5% 15.7% 4.3%
-0.3% -3.0% 15.3% 3.5%
-8.2% -9.1% 35.8% -1.8%
-24.1% -95.7% 3120.8% 1.8%
-61.2% -100.0% -7.0%
9.9% 0.0% 9.4% 6.2%
5.1% 4.6% -17.4% 12.2%
8.4% -2.9% 24.7% -5.7%
-3.6% -11.7% 30.5% 1.7%
-6.7% -10.4% -35.9% -1.3%
0.5% -0.5% 103.9% 8.5%
25.4% 15.5% 15.9% -0.8%
-2.3% -5.5% -8.0% 1.8%
0.0% 0.0% 0.0%
-2.3% -5.5% -8.0% 1.8%
3.1% 3.5% 22.8% 5.1%
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0.0% 0.0% -6.1% 4.8%
3.0% 3.4% 22.0% 5.1%
-0.3% -3.0% 15.3% 3.5%
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Company Goodyear
Sales Growth (Tire) 5 42.20
Sales Growth (Rubber) 6
Sales Growth (Oil & Gas) 15
Sales Growth (Other Products) 7
EBIT % of Sales (Tire) 14
EBIT % of Sales (Rubber) 15
EBIT % of Sales (Oil & Gas) 18
EBIT % of Sales (Others Products) 25
Depreciation % of Sales (Tire) 5
Depreciation % of Sales (Rubber) 3
Depreciation % of Sales (Oil & Gas) 5
Depreciation % of Sales (Other Produ 5
FCInv % of Sales (Tire) 4
FCInv % of Sales (Rubber) 2.5
FCInv % of Sales (Oil & Gas) 8
FCInv % of Sales (Other Products) 3
WCInv % of Sales (Tire) 2
WCInv % of Sales (Rubber) 1.5
WCInv % of Sales (Oil & Gas) 10
WCInv % of Sales (Other Products) 3
Tax Rate 40
Market Return 15
Risk Free Return 8.04
Beta 1.1
Required Return 15.70
Risk Premium 0.8
Required Rate of Return 16.5
Terminal Growth Rate 4
Shares Outstanding 107
Information Metric 1986 1987 1988 1989 1990
Income Statement
Sales
Tires & Related 7,700 8,085 8,489 8,914 9,359
Rubber, Chemical and Plastic 1,150 1,219 1,292 1,370 1,452
Oil & Gas 400 460 529 608 700
Others 70 75 80 86 92
Total Sales 9,320 9,839 10,391 10,977 11,603
EBIT
Tires & Related 1,078 1,132 1,188 1,248 1,310
Rubber, Chemical and Plastic 173 183 194 205 218
Oil & Gas 72 83 95 110 126
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Others 18 19 20 21 23
Total EBIT 1,340 1,416 1,498 1,584 1,677
EBIT (1 - Tax Rate) 804 850 899 951 1,006
Depreciation
Tires & Related 385 404 424 446 468
Rubber, Chemical and Plastic 35 37 39 41 44
Oil & Gas 20 23 26 30 35
Others 4 4 4 4 5
Total Depreciation 443 468 494 521 551
Fixed Capital Investment
Tires & Related 308 323 340 357 374
Rubber, Chemical and Plastic 29 30 32 34 36
Oil & Gas 32 37 42 49 56
Others 2 2 2 3 3
Total FCInv 371 393 417 442 469
Working Capital Investment
Tires & Related 154 162 170 178 187
Rubber, Chemical and Plastic 17 18 19 21 22
Oil & Gas 40 46 53 61 70
Others 2 2 2 3 3
Total WCInv 213 228 244 262 282
FCFF 663 696 731 768 806
Terminal Value 6,708
PV FCFF 569 513 462 417 3,501
PV FCFF 5,462
Less: Market Value of Debt 998
Less: Bankruptcy Cost 109
Add: Sale of Aerospace 177
Intrinsic Value 4,533
Intrinsic Value Per Share (FCFF) 42.20
Book Value Beginning 1626 1886 2173 2485
ROE 20 19 18 17
Net Income 325 358 391 423
Dividends 65 72 78 85
Book Value Ending 1886 2173 2485 2823
Net Income 358 391 423
Equity Charge 13% 282 323 367
Economic Income 76 68 55 0
7/30/2019 Financial Distress of Goodyear Corporation
20/45
Company Goodyear
Sales Growth (Tire) 6 57.80
Sales Growth (Rubber) 7
Sales Growth (Oil & Gas) 16
Sales Growth (Other Products) 8
EBIT % of Sales (Tire) 15
EBIT % of Sales (Rubber) 16
EBIT % of Sales (Oil & Gas) 18
EBIT % of Sales (Others Products) 25
Depreciation % of Sales (Tire) 6
Depreciation % of Sales (Rubber) 4
Depreciation % of Sales (Oil & Gas) 6
Depreciation % of Sales (Other Produ 6
FCInv % of Sales (Tire) 4
FCInv % of Sales (Rubber) 2.5
FCInv % of Sales (Oil & Gas) 8
FCInv % of Sales (Other Products) 3
WCInv % of Sales (Tire) 2
WCInv % of Sales (Rubber) 1.5
WCInv % of Sales (Oil & Gas) 10
WCInv % of Sales (Other Products) 3
Tax Rate 40
Market Return 15
Risk Free Return 8.04
Beta 1.1
Required Return 15.70
Risk Premium 0.3
Required Rate of Return 16
Terminal Growth Rate 4
Shares Outstanding 107
Information Metric 1986 1987 1988 1989 1990
Income Statement
Sales
Tires & Related 7,700 8,162 8,652 9,171 9,721
Rubber, Chemical and Plastic 1,150 1,231 1,317 1,409 1,507
Oil & Gas 400 464 538 624 724
Others 70 76 82 88 95
Total Sales 9,320 9,932 10,588 11,292 12,048
EBIT
Tires & Related 1,155 1,224 1,298 1,376 1,458
Rubber, Chemical and Plastic 184 197 211 225 241
Oil & Gas 72 84 97 112 130
7/30/2019 Financial Distress of Goodyear Corporation
21/45
Others 18 19 20 22 24
Total EBIT 1,429 1,524 1,626 1,735 1,854
EBIT (1 - Tax Rate) 857 914 975 1,041 1,112
Depreciation
Tires & Related 462 490 519 550 583
Rubber, Chemical and Plastic 46 49 53 56 60
Oil & Gas 24 28 32 37 43
Others 4 5 5 5 6
Total Depreciation 536 571 609 649 693
Fixed Capital Investment
Tires & Related 308 326 346 367 389
Rubber, Chemical and Plastic 29 31 33 35 38
Oil & Gas 32 37 43 50 58
Others 2 2 2 3 3
Total FCInv 371 397 424 455 487
Working Capital Investment
Tires & Related 154 163 173 183 194
Rubber, Chemical and Plastic 17 18 20 21 23
Oil & Gas 40 46 54 62 72
Others 2 2 2 3 3
Total WCInv 213 230 249 270 292
FCFF 809 858 911 966 1,025
Terminal Value 8,885
PV FCFF 698 638 584 534 4,718
PV FCFF 7,171
Less: Market Value of Debt 998
Less: Bankruptcy Cost 143
Add: Sale of Aerospace 177
Intrinsic Value 6,207
Intrinsic Value Per Share (FCFF) 57.80
Book Value Beginning 1626 1886 2173 2485
ROE 20 19 18 17
Net Income 325 358 391 423
Dividends 65 72 78 85
Book Value Ending 1886 2173 2485 2823
Net Income 358 391 423
Equity Charge 13% 282 323 367
Economic Income 76 68 55 0
7/30/2019 Financial Distress of Goodyear Corporation
22/45
Company Goodyear
Sales Growth 7 #REF!
EBIT % of Sales 12
Depreciation % of Sales (Tire) 2
FCInv % of Sales (Tire) 3.5
WCInv % of Sales (Tire) 3
Tax Rate 40
Market Return 15
Risk Free Return 8.04
Beta 1.1
Required Return 15.70
Risk Premium 0.3
Required Rate of Return 16
Terminal Growth Rate 3
Shares Outstanding 107
Information Metric 1986 1987 1988 1989 1990
Income Statement
Sales 760 813 870 931 996
EBIT 91 98 104 112 120
EBIT (1 - Tax Rate) 55 59 63 67 72
Depreciation 15 16 17 19 20
FCInv 27 28 30 33 35
WCInv 23 24 26 28 30
FCFF 21 22 23 25 27
Terminal Value 213
PV FCFF 18 16 15 14 114
Fundamental Value of Segment 177
Book Value Beginning 1626 1886 2173 2485
ROE 20 19 18 17
Net Income 325 358 391 423
Dividends 65 72 78 85
Book Value Ending 1886 2173 2485 2823
Net Income 358 391 423
Equity Charge 13% 282 323 367
Economic Income 76 68 55 0
7/30/2019 Financial Distress of Goodyear Corporation
23/45
Company Goodyear
Sales Growth (Tire) 6 47.78
Sales Growth (Rubber) 7
Sales Growth (Oil & Gas) 16
Sales Growth (Other Products) 8
EBIT % of Sales (Tire) 15
EBIT % of Sales (Rubber) 16
EBIT % of Sales (Oil & Gas) 18
EBIT % of Sales (Others Products) 25
Depreciation % of Sales (Tire) 6
Depreciation % of Sales (Rubber) 4
Depreciation % of Sales (Oil & Gas) 6
Depreciation % of Sales (Other Produ 6
FCInv % of Sales (Tire) 4
FCInv % of Sales (Rubber) 2.5
FCInv % of Sales (Oil & Gas) 8
FCInv % of Sales (Other Products) 3
WCInv % of Sales (Tire) 2
WCInv % of Sales (Rubber) 1.5
WCInv % of Sales (Oil & Gas) 10
WCInv % of Sales (Other Products) 3
Tax Rate 40
Market Return 15
Risk Free Return 8.04
Beta 1.1
Required Return (CAPM) 15.70
Risk Premium 0.3
Required Rate of Return 16
Terminal Growth Rate 4
Shares Outstanding 107
Information Metric 1986 1987 1988 1989 1990
Income Statement
Sales
Tires & Related 7,700 8,162 8,652 9,171 9,721
Rubber, Chemical and Plastic 1,150 1,231 1,317 1,409 1,507
Oil & Gas 400 464 538 624 724
Others 70 76 82 88 95
Total Sales 9,320 9,932 10,588 11,292 12,048
EBIT
Tires & Related 1,155 1,224 1,298 1,376 1,458
Rubber, Chemical and Plastic 184 197 211 225 241
Oil & Gas 72 84 97 112 130
7/30/2019 Financial Distress of Goodyear Corporation
24/45
Others 18 19 20 22 24
Total EBIT 1,429 1,524 1,626 1,735 1,854
EBIT (1 - Tax Rate) 857 914 975 1,041 1,112
Depreciation
Tires & Related 462 490 519 550 583
Rubber, Chemical and Plastic 46 49 53 56 60
Oil & Gas 24 28 32 37 43
Others 4 5 5 5 6
Total Depreciation 536 571 609 649 693
Fixed Capital Investment
Tires & Related 308 326 346 367 389
Rubber, Chemical and Plastic 29 31 33 35 38
Oil & Gas 32 37 43 50 58
Others 2 2 2 3 3
Total FCInv 371 397 424 455 487
Working Capital Investment
Tires & Related 154 163 173 183 194
Rubber, Chemical and Plastic 17 18 20 21 23
Oil & Gas 40 46 54 62 72
Others 2 2 2 3 3
Total WCInv 213 230 249 270 292
FCFF 809 858 911 966 1,025
Terminal Value 8,885
PV FCFF 698 638 584 534 4,718
PV FCFF 7,171
Less: Market Value of Debt 998
Less: Bankruptcy Test 143
Add: Sale of Aerospace 177
Less: Cash Bonus 1,076
Intrinsic Value 5,132
Intrinsic Value Per Share (FCFF) 47.78
Goldsmith's Perspective
Cash Outflow from Acquisition 4823
Resell Value of Stock 4609
Acquisition Cost 145
Gain (Loss) -359
7/30/2019 Financial Distress of Goodyear Corporation
25/45
Company Goodyear
Sales Growth (Tire) 6 47.00
Sales Growth (Rubber) 7
Sales Growth (Oil & Gas) 16
Sales Growth (Other Products) 8
EBIT % of Sales (Tire) 15
EBIT % of Sales (Rubber) 16
EBIT % of Sales (Oil & Gas) 18
EBIT % of Sales (Others Products) 25
Depreciation % of Sales (Tire) 6
Depreciation % of Sales (Rubber) 4
Depreciation % of Sales (Oil & Gas) 6
Depreciation % of Sales (Other Produ 6
FCInv % of Sales (Tire) 4
FCInv % of Sales (Rubber) 2.5
FCInv % of Sales (Oil & Gas) 8
FCInv % of Sales (Other Products) 3
WCInv % of Sales (Tire) 2
WCInv % of Sales (Rubber) 1.5
WCInv % of Sales (Oil & Gas) 10
WCInv % of Sales (Other Products) 3
Tax Rate 40
Market Return 15
Risk Free Return 8.04
Beta 1.1
Required Return (CAPM) 15.70
Risk Premium 0.3
Required Rate of Return 16
Terminal Growth Rate 4
Shares Outstanding 147
Information Metric 1986 1987 1988 1989 1990
Income Statement
Sales
Tires & Related 7,700 8,162 8,652 9,171 9,721
Rubber, Chemical and Plastic 1,150 1,231 1,317 1,409 1,507
Oil & Gas 400 464 538 624 724
Others 70 76 82 88 95
Total Sales 9,320 9,932 10,588 11,292 12,048
EBIT
Tires & Related 1,155 1,224 1,298 1,376 1,458
Rubber, Chemical and Plastic 184 197 211 225 241
Oil & Gas 72 84 97 112 130
7/30/2019 Financial Distress of Goodyear Corporation
26/45
Others 18 19 20 22 24
Total EBIT 1,429 1,524 1,626 1,735 1,854
EBIT (1 - Tax Rate) 857 914 975 1,041 1,112
Depreciation
Tires & Related 462 490 519 550 583
Rubber, Chemical and Plastic 46 49 53 56 60
Oil & Gas 24 28 32 37 43
Others 4 5 5 5 6
Total Depreciation 536 571 609 649 693
Fixed Capital Investment
Tires & Related 308 326 346 367 389
Rubber, Chemical and Plastic 29 31 33 35 38
Oil & Gas 32 37 43 50 58
Others 2 2 2 3 3
Total FCInv 371 397 424 455 487
Working Capital Investment
Tires & Related 154 163 173 183 194
Rubber, Chemical and Plastic 17 18 20 21 23
Oil & Gas 40 46 54 62 72
Others 2 2 2 3 3
Total WCInv 213 230 249 270 292
FCFF 809 858 911 966 1,025
Terminal Value 8,885
PV FCFF 698 638 584 534 4,718
PV FCFF 7,171
Less: Market Value of Debt 998
Less: Bankruptcy Cost 143
Add: Sale of Aerospace 177
Add: Cash from New Stocks Issuance 720
Intrinsic Value 6,927
Intrinsic Value Per Share (FCFF) 47.00
Goldsmith's Perspective
Cash Outflow from Acquisition 4823
Resell Value of Stock 4533
Acquisition Cost 145
Gain (Loss) -434
7/30/2019 Financial Distress of Goodyear Corporation
27/45
Company Goodyear
Sales Growth (Tire) 6 57.80
Sales Growth (Rubber) 7
Sales Growth (Oil & Gas) 16
Sales Growth (Other Products) 8
EBIT % of Sales (Tire) 15
EBIT % of Sales (Rubber) 16
EBIT % of Sales (Oil & Gas) 18
EBIT % of Sales (Others Products) 25
Depreciation % of Sales (Tire) 6
Depreciation % of Sales (Rubber) 4
Depreciation % of Sales (Oil & Gas) 6
Depreciation % of Sales (Other Produ 6
FCInv % of Sales (Tire) 4
FCInv % of Sales (Rubber) 2.5
FCInv % of Sales (Oil & Gas) 8
FCInv % of Sales (Other Products) 3
WCInv % of Sales (Tire) 2
WCInv % of Sales (Rubber) 1.5
WCInv % of Sales (Oil & Gas) 10
WCInv % of Sales (Other Products) 3
Tax Rate 40
Market Return 15
Risk Free Return 8.04
Beta 1.1
Required Return (CAPM) 15.70
Risk Premium 0.3
Required Rate of Return 16
Terminal Growth Rate 4
Shares Outstanding 107
Information Metric 1986 1987 1988 1989 1990
Income Statement
Sales
Tires & Related 7,700 8,162 8,652 9,171 9,721
Rubber, Chemical and Plastic 1,150 1,231 1,317 1,409 1,507
Oil & Gas 400 464 538 624 724
Others 70 76 82 88 95
Total Sales 9,320 9,932 10,588 11,292 12,048
EBIT
Tires & Related 1,155 1,224 1,298 1,376 1,458
Rubber, Chemical and Plastic 184 197 211 225 241
Oil & Gas 72 84 97 112 130
7/30/2019 Financial Distress of Goodyear Corporation
28/45
Others 18 19 20 22 24
Total EBIT 1,429 1,524 1,626 1,735 1,854
EBIT (1 - Tax Rate) 857 914 975 1,041 1,112
Depreciation
Tires & Related 462 490 519 550 583
Rubber, Chemical and Plastic 46 49 53 56 60
Oil & Gas 24 28 32 37 43
Others 4 5 5 5 6
Total Depreciation 536 571 609 649 693
Fixed Capital Investment
Tires & Related 308 326 346 367 389
Rubber, Chemical and Plastic 29 31 33 35 38
Oil & Gas 32 37 43 50 58
Others 2 2 2 3 3
Total FCInv 371 397 424 455 487
Working Capital Investment
Tires & Related 154 163 173 183 194
Rubber, Chemical and Plastic 17 18 20 21 23
Oil & Gas 40 46 54 62 72
Others 2 2 2 3 3
Total WCInv 213 230 249 270 292
FCFF 809 858 911 966 1,025
Terminal Value 8,885
PV FCFF 698 638 584 534 4,718
PV FCFF 7,171
Less: Market Value of Debt 998
Less: Bankruptcy Test 143
Add: Sale of Aerospace 177
Intrinsic Value 6,207
Intrinsic Value Per Share (FCFF) 57.80
Goldsmith's Perspective
Cash Outflow from Acquisition 4752
Resell Value of Stock 5493
Redemption of Bonds 816
Acquisition Cost 143
Gain (Loss) -218
7/30/2019 Financial Distress of Goodyear Corporation
29/45
Company Goodyear
Sales Growth (Tire) 6 56.66
Sales Growth (Rubber) 7
Sales Growth (Oil & Gas) 16
Sales Growth (Other Products) 8
EBIT % of Sales (Tire) 15
EBIT % of Sales (Rubber) 16
EBIT % of Sales (Oil & Gas) 18
EBIT % of Sales (Others Products) 25
Depreciation % of Sales (Tire) 6
Depreciation % of Sales (Rubber) 4
Depreciation % of Sales (Oil & Gas) 6
Depreciation % of Sales (Other Produ 6
FCInv % of Sales (Tire) 4
FCInv % of Sales (Rubber) 2.5
FCInv % of Sales (Oil & Gas) 8
FCInv % of Sales (Other Products) 3
WCInv % of Sales (Tire) 2
WCInv % of Sales (Rubber) 1.5
WCInv % of Sales (Oil & Gas) 10
WCInv % of Sales (Other Products) 3
Tax Rate 40
Market Return 15
Risk Free Return 8.04
Beta 1.1
Required Return (CAPM) 15.70
Risk Premium 0.3
Required Rate of Return 16
Terminal Growth Rate 4
Shares Outstanding 87
Information Metric 1986 1987 1988 1989 1990
Income Statement
Sales
Tires & Related 7,700 8,162 8,652 9,171 9,721
Rubber, Chemical and Plastic 1,150 1,231 1,317 1,409 1,507
Oil & Gas 400 464 538 624 724
Others 70 76 82 88 95
Total Sales 9,320 9,932 10,588 11,292 12,048
EBIT
Tires & Related 1,155 1,224 1,298 1,376 1,458
Rubber, Chemical and Plastic 184 197 211 225 241
Oil & Gas 72 84 97 112 130
7/30/2019 Financial Distress of Goodyear Corporation
30/45
Others 18 19 20 22 24
Total EBIT 1,429 1,524 1,626 1,735 1,854
EBIT (1 - Tax Rate) 857 914 975 1,041 1,112
Depreciation
Tires & Related 462 490 519 550 583
Rubber, Chemical and Plastic 46 49 53 56 60
Oil & Gas 24 28 32 37 43
Others 4 5 5 5 6
Total Depreciation 536 571 609 649 693
Fixed Capital Investment
Tires & Related 308 326 346 367 389
Rubber, Chemical and Plastic 29 31 33 35 38
Oil & Gas 32 37 43 50 58
Others 2 2 2 3 3
Total FCInv 371 397 424 455 487
Working Capital Investment
Tires & Related 154 163 173 183 194
Rubber, Chemical and Plastic 17 18 20 21 23
Oil & Gas 40 46 54 62 72
Others 2 2 2 3 3
Total WCInv 213 230 249 270 292
FCFF 809 858 911 966 1,025
Terminal Value 8,885
PV FCFF 698 638 584 534 4,718
PV FCFF 7,171
Less: Market Value of Debt 1,538
Less: Bankruptcy Cost 359
Less: Repurchase Cost 500
Add: Sale of Aerospace 177
Intrinsic Value 4,952
Intrinsic Value Per Share (FCFF) 56.66
Goldsmith's Perspective
Cash Outflow from Acquisition 5069
Resell Value of Stock 4952
Acquisition Cost 152
Gain (Loss) -269
Net Income 0 0 0
Equity Charge 13% 0 0 0
7/30/2019 Financial Distress of Goodyear Corporation
31/45
Economic Income 1040 0 0 0 0
540
7/30/2019 Financial Distress of Goodyear Corporation
32/45
Outflow Inflow Gain (Loss)
Golden Parachute 4968 4609 -359
Poison Pill 4968 4533 -434
Poison Put 5711 5493 -218
Share Repurchase 5221 4952 -269
Offer for the Current Holding 814.78
Worth of Current Holding 601.68
Gain 213.10
7/30/2019 Financial Distress of Goodyear Corporation
33/45
Market share of Goodyear 32%
Market share of Michelin 0.11
sales growth 0.06
tax rate 0.4
depreciation (% of sales) 0.05
FC Inv 0.03WC Inv 0.02
Market Return 0.15
Risk Free Return 0.0804 0.1004
Beta 1.1
Required Return (CAPM) 0.15696
Risk Premium 0.004
Required Rate of Return 0.16096
terminal Growth rate 0.04
1986 1987 1988 1989 1990
Total Sales of Goodyear 7700 8162 8652 9171 9721
Michelin sales 2647 2806 2974 3152 3342
EBIT 397 421 446 473 501
EBIT (1-tax) 238 253 268 284 301
depreciation 385 408 433 459 486
FC inv 79 84 89 95 100
WC inv 53 56 59 63 67
FCFF 491 520 552 585 620Terminal Value 5328
PV FCFF 423 520 552 585 5948
PV FCFF 8027
less mkt value of debt 100
intrinsic value 7927
SYNERGY Calculation
Revenue enhancement 385 408 433 459 486
savings in selling and admin 73 77 80 85 89
savings in R&D 10 10 10 10 10
Cap ex savings 26 28 30 32 34
pv of RE 332 408 433 459 486 2117
pv of S&A savings+R&D 75 87 90 95 99 446
Cap ex savings 23 21 20 18 17 98
7/30/2019 Financial Distress of Goodyear Corporation
34/45
PV of synergy 2661
7/30/2019 Financial Distress of Goodyear Corporation
35/45
Company Goodyear
Sales Growth (Tire) 6 82.86
Sales Growth (Rubber) 7
Sales Growth (Oil & Gas) 16
Sales Growth (Other Products) 8
EBIT % of Sales (Tire) 15
EBIT % of Sales (Rubber) 16
EBIT % of Sales (Oil & Gas) 18
EBIT % of Sales (Others Products) 25
Depreciation % of Sales (Tire) 6
Depreciation % of Sales (Rubber) 4
Depreciation % of Sales (Oil & Gas) 6
Depreciation % of Sales (Other Produ 6
FCInv % of Sales (Tire) 4
FCInv % of Sales (Rubber) 2.5
FCInv % of Sales (Oil & Gas) 8
FCInv % of Sales (Other Products) 3
WCInv % of Sales (Tire) 2
WCInv % of Sales (Rubber) 1.5
WCInv % of Sales (Oil & Gas) 10
WCInv % of Sales (Other Products) 3
Tax Rate 40
Market Return 15
Risk Free Return 8.04
Beta 1.1
Required Return (CAPM) 15.70
Risk Premium 0.3
Required Rate of Return 16
Terminal Growth Rate 4
Shares Outstanding 107
Information Metric 1986 1987 1988 1989 1990
Income Statement
Sales
Tires & Related 7,700 8,162 8,652 9,171 9,721
Rubber, Chemical and Plastic 1,150 1,231 1,317 1,409 1,507
Oil & Gas 400 464 538 624 724
Others 70 76 82 88 95
Total Sales 9,320 9,932 10,588 11,292 12,048
EBIT
Tires & Related 1,155 1,224 1,298 1,376 1,458
Rubber, Chemical and Plastic 184 197 211 225 241
Oil & Gas 72 84 97 112 130
7/30/2019 Financial Distress of Goodyear Corporation
36/45
Others 18 19 20 22 24
Total EBIT 1,429 1,524 1,626 1,735 1,854
EBIT (1 - Tax Rate) 857 914 975 1,041 1,112
Depreciation
Tires & Related 462 490 519 550 583
Rubber, Chemical and Plastic 46 49 53 56 60
Oil & Gas 24 28 32 37 43
Others 4 5 5 5 6
Total Depreciation 536 571 609 649 693
Fixed Capital Investment
Tires & Related 308 326 346 367 389
Rubber, Chemical and Plastic 29 31 33 35 38
Oil & Gas 32 37 43 50 58
Others 2 2 2 3 3
Total FCInv 371 397 424 455 487
Working Capital Investment
Tires & Related 154 163 173 183 194
Rubber, Chemical and Plastic 17 18 20 21 23
Oil & Gas 40 46 54 62 72
Others 2 2 2 3 3
Total WCInv 213 230 249 270 292
FCFF 809 858 911 966 1,025
Terminal Value 8,885
PV FCFF 698 638 584 534 4,718
PV FCFF 7,171
Less: Market Value of Debt 998
Add: Sale of Aerospace 177
Value of Goodyear 6,351
Add: Value of Michelin 7,927
Add: Synergy 2,661
Add: Real Option 680
Less: Acquisition Cost 8,720
Intrinsic Value 8,899
Intrinsic Value Per Share (FCFF) 82.86
Book Value Beginning 1626 1886 2173 2485
ROE 20 19 18 17
Net Income 325 358 391 423
Dividends 65 72 78 85
Book Value Ending 1886 2173 2485 2823
Net Income 358 391 423
7/30/2019 Financial Distress of Goodyear Corporation
37/45
Equity Charge 13% 282 323 367
Economic Income 76 68 55 0
7/30/2019 Financial Distress of Goodyear Corporation
38/45
7/30/2019 Financial Distress of Goodyear Corporation
39/45
15% 0.1534
0.05753
7/30/2019 Financial Distress of Goodyear Corporation
40/45
1987 1988 1989
Total Revenues
Cost of Goods Sold
Information Metric 1987 1988 1989
Operating Profit After Tax 914 975 1041
Addback: Depreciation 571 609 649
After-tax Operating Cash Flow 1485 1584 1691
Outflow 446 396 104
P.V of Outflow 384 341 77
Inflow 245.1035
P.V of Inflow 182.1519
Option Valuation
PV OCF (S) 947
Initial Outlay (X) 874
Time before option expires, t 13
Risk free rate of return, r 8.04
Standard deviation, 30%
d1 1.58
d2 0.50N(d1) 0.94
N(d2) 0.69
Value of Option 680
7/30/2019 Financial Distress of Goodyear Corporation
41/45
1990 1991
1990 1991 1992 1993 1994 1995 1996 1997
1112 1188 1270.629 1359.382 1455.287 1559.052 1671.474 1793.445
693 739 789.5278 843.5705 901.8502 964.7753 1032.803 1106.444
1805 1928 2060 2203 2357 2524 2704 2900
22 24 25.41258 23 21 19 18 18
14 13 12 9 7 6 5 4
260 266 268 212 209 207 203 203
166.571 146.9094 127.5983 87.01376 73.95037 63.14027 53.37945 46.01677
7/30/2019 Financial Distress of Goodyear Corporation
42/45
S&P 102.09 114.24 125.46 135.76 136 131.21
Firestone 6.625 6.875 8.5 10.5 12.5 12.875
Goodrich 18.25 19.25 22.75 24.875 27.25 25.875
Goodyear 11.75 13 15.875 16 19.875 19.125
Market Return 11.9% 9.8% 8.2% 0.2% -3.5%Stock Return - Firestone 3.8% 23.6% 23.5% 19.0% 3.0%
Stock Return - Goodrich 5.5% 18.2% 9.3% 9.5% -5.0%
Stock Return - Goodyear 10.6% 22.1% 0.8% 24.2% -3.8%
Stock Return - Average 6.6% 21.3% 11.2% 17.6% -1.9%
116.18 120.42 166.07 166.1 182.05 231.22
0.0365 0.3791 0.0002 0.0960 0.2701
7/30/2019 Financial Distress of Goodyear Corporation
43/45
116.18 122.55 111.96 109.61 120.42 140.64 152.96 168.11 166.07
10.375 12.625 10.625 12 11.875 18.5 19 20 20.625
21.75 22.25 20 19 22 32.125 37.5 41 35.5
17.375 19 21.25 24.5 24.25 35 28 32.25 30.375
-11.5% 5.5% -8.6% -2.1% 9.9% 16.8% 8.8% 9.9% -1.2%-19.4% 21.7% -15.8% 12.9% -1.0% 55.8% 2.7% 5.3% 3.1%
-15.9% 2.3% -10.1% -5.0% 15.8% 46.0% 16.7% 9.3% -13.4%
-9.2% 9.4% 11.8% 15.3% -1.0% 44.3% -20.0% 15.2% -5.8%
-14.8% 11.1% -4.7% 7.7% 4.6% 48.7% -0.2% 9.9% -5.4%
0.1564
7/30/2019 Financial Distress of Goodyear Corporation
44/45
164.93 159.18 153.18 166.1 167.24 180.6 191.85 182.08 211.28
22.25 17.5 17.125 19.5 17 18.375 21.5 18.375 23.875
30.375 33 27 28.375 27 29.5 31.875 31.5 32.875
30.375 26.375 25.75 26.75 26 26.875 29.5 27.375 31.25
-0.7% -3.5% -3.8% 8.4% 0.7% 8.0% 6.2% -5.1% 16.0%7.9% -21.3% -2.1% 13.9% -12.8% 8.1% 17.0% -14.5% 29.9%
-14.4% 8.6% -18.2% 5.1% -4.8% 9.3% 8.1% -1.2% 4.4%
0.0% -13.2% -2.4% 3.9% -2.8% 3.4% 9.8% -7.2% 14.2%
-2.2% -8.6% -7.6% 7.6% -6.8% 6.9% 11.6% -7.6% 16.2%
7/30/2019 Financial Distress of Goodyear Corporation
45/45
238.9 250.84 231.22
25.625 25.375 24.625
47 43.5 38.125
36.5 33 34.875
13.1% 5.0% -7.8%3.48%
7.3% -1.0% -3.0% 6.44%
43.0% -7.4% -12.4% 3.97%
16.8% -9.6% 5.7% 5.10%
22.4% -6.0% -3.2% 5.17%