Fair-to-Midland Manufacturing, Inc. (FMM), has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following information from the company’s financial statements: |
| Total assets | $115,000 |
| EBIT | 7,900 |
| Net working capital | 4,100 |
| Book value of equity | 23,000 |
| Accumulated retained earnings | 19,600 |
| Sales | 112,000 |
| The stock price of FMM is $31 per share and there are 7,800 shares outstanding. What is the Z-score for this company? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) |
Z-score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
Where,
A = Working capital / Total Assets
B = Retained earnings / Total Assets
C = Earnings Before Interest and Tax / Total Assets
D = Market value of equity / Total Liabilities
E = Sales / Total Assets
Z-score = 1.2 \times ($4,100 / $115,000) + 1.4 \times ($19,600 / $115,000) + 3.3 \times ($7,900 / $115,000) + 0.6 \times ($241,800 / $92,000) + 1.0 \times ($112,000 / $115,000).
Z-score = 0.04278 + 0.23861 + 0.2267 + 1.5770 + 0.97391
Z-score = 3.059
Total liabilities = Total assets - Book value of equity
Total liabilities = $115,000 - $23,000 = $92,000.
Fair-to-Midland Manufacturing, Inc. (FMM), has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following information from the company’s financial statements:
Fair-to-Midland Manufacturing, Inc. (FMM), has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following information from the company’s financial statements: Total assets $89,000 EBIT 7,600 Net working capital 4,100 Book value of equity 26,000 Accumulated retained earnings 17,500 Sales 99,000 The stock price of FMM is $28 per share and there are 5,700 shares outstanding. What is the Z-score for this company?
Fair-to-Midland Manufacturing, Inc. (FMM), has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following information from the company’s financial statements: Total assets $103,000 EBIT 8,300 Net working capital 4,800 Book value of equity 33,000 Accumulated retained earnings 18,200 Sales 106,000 The stock price of FMM is $35 per share and there are 6,400 shares outstanding. What is the Z-score for this company? (Do not round intermediate calculations...
Jon Fulkerson, a credit analyst at the True Credit bank, has received a credit application from Seether, LLC, a private company. An abbreviated portion of the financial information provided by the company is shown below: Total assets $72,000 EBIT 8,800 Net working capital 5,100 Book value of equity 27,000 Accumulated retained earnings 16,900 Total liabilities 66,000 What is the Z-score for this company? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
Jon Fulkerson, a credit analyst at the True Credit bank, has received a credit application from Seether, LLC, a private company. An abbreviated portion of the financial information provided by the company is shown below: Total assets $65,000 EBIT 8,100 Net working capital 4,400 Book value of equity 20,000 Accumulated retained earnings 16,200 Total liabilities 59,000 What is the Z-score for this company? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)