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wc re ebit tmv

  Total Assets 11,765,894,000 ### 0.26 0.12 0.30 0.02

Working Capital 3,049,150,000 ### 1.2 1.4 3.3 0.6

Retained Earnings 1,406,730,000 ### 0.31 0.17 1.01 0.01

Earning Before Income T 3,584,541,000 ###

  Total Market Liabilities 292,844,000 292,844,000 wc re ebit euqity

Sale 22,199,909,000 ### 0.26 0.12 0.30 0.276.56 3.26 6.72 1.05

Debt 11,473,050,000 1.70 0.39 2.05 0.28

Euqity 3,049,150,000 1.70 + 0.39 +

Liabilities 11,765,894,000

(1.2(0.26) ) (+ ) (1.4(0.12) ) (+ ) 3.3(0.30) (+ ) 0.6(0.02) +

0.31 (+ ) 0.17 (+ ) 1.01 (+ ) 0.01 +

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sale euqity

1.89 0.27

1

1.89 3.39

4.42

2.05 + 0.28 4.42

1.89(1)

1.89 = 3.39

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Working Capital

Total Assets

Comments:

By contrast, a firm with significantly positive working capital rarely has trouble paying its bills.

Retained Earnings

Total Assets

Comments:

Companies with low RE/TA are financing capital expenditure through borrowings rather than through retained earnings.

Companies with high RE/TA suggest a history of profitability and the ability to stand up to a bad year of losses.

Earning Before Interest and Tax

Total Assets

Comments:

 This is a version of return on assets (ROA), an effective way of assessing a firm's ability to squeeze profits from its a

before factors like interest and tax are deducted.

Market Value of Equity

Total Liabilities

Comments:

 This ratio is a good test for corporate distress. A firm with negative working capital is likely to experience problemsmeeting its short-term obligations because there simply is not enough current assets to cover those obligations.

 This ratio measures the amount of reinvested earnings or losses, which reflects the extent of the company's leverag

 This is a ratio that shows - if a firm were to become insolvent - how much the company's market value would decline

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before liabilities exceed assets on the financial statements. This ratio adds a market value dimension to the model t

based on pure fundamentals. In other words, a durable market capitalization can be interpreted as the market's

confidence in the company's solid financial position.

`

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Sales

Total Assets

Comments:

 This tells investors how well management handles competition and how efficiently the firm uses assets to generateFailure to grow market share translates into a low or falling Sales over Total Assets

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Z-SCORE ANALYSIS OLD MODEL:

A predictive model created by Edward Altman in the 1960s. This model combines five different financial ratios to determi

bankruptcy amongst companies.

Generally speaking, the lower the score, the higher the odds of bankruptcy. Companies with Z-Scores above 3 are consid

(1.2(0.26) ) (+ ) (1.4(0.12) ) (+ ) 3.3(0.30) (+ ) 0.6(0.02) + 1.89(1)

0.31 (+ ) 0.17 (+ ) 1.01 (+ ) 0.01 + 1.89 = 3.39

Remarks:

(The answer is 3.39 and higher than standard 2.99 which indicate that buisness is going very well, expand and gene

and, therefore, unlikely to enter bankruptcy. Scores in between 1.8 and 3 lie in a grey area.

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ne the likelihood of 

ered to be healthy

ating good amount of profits. )

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Z-SCORE ANALYSIS NEW MODEL:

A predictive model created by Edward Altman in the 1960s. This model combines five different financial ratios to deter

bankruptcy amongst companies.

Generally speaking, the lower the score, the higher the odds of bankruptcy. Companies with Z-Scores above 3 are consi

6.56(0.2 (+ ) 3.26(0.1 (+ ) 6.72(0.3 (+ ) 1.05(0.27)

1.70 (+ ) 0.39 (+ ) 2.05 (+ ) 0.28 = 4.42

Remarks:

(The answer is 4.42 and higher than standard 2.6 which indicate that buisness is going very well, expand and gen

and, therefore, unlikely to enter bankruptcy. Scores in between 1.8 and 3 lie in a grey area.

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ine the likelihood of 

dered to be healthy

erating good amount of profits. )

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PAT sale TA ROE

0.01 1.89 3.86 0.07 0.07

PAT 228,498,000

 Total Ass 11,765,894,000

Sale 22,199,909,000

Equity 3,049,150,000

0.01 X 1.89 X 3.86 = 0.07

0.07

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DUPONT ANALYSIS

A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, as

2- Asset use efficiency, which is measured by total asset turnover

0.01 X 1.89 X 3.86 = 0.07

0.07

Remarks:

It is noted that answer from both approaches remain the same which is 0.07.

at their gross book value rather than at net book value in order to produce a higher return on equity (ROE). It is also kn

DuPont analysis tells us that ROE is affected by three things:

1- Operating efficiency, which is measured by profit margin

3- Financial leverage, which is measured by the equity multiplier

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ets are measured

wn as "DuPont identity".