Bankruptcy Risk and Z-Score AnalysisFollowing are selected ratios for Logitech International SA for the company's 2019 fiscal year.$ thousands (except per share numbers)Current assetsCurrent liabilitiesTotal assetsRetained earningsPrice per shareCheck$1,350,436 EBIT$717,819 Total liabilitiesCompute and interpret the Altman Z-score.Do not round computations until your final answer. Round answer to two decimal places.4,268.91x$263.194$847.785$2.024,124 Sales revenue$2.788,322$1.365.036 Shares outstanding 165.852.887$39.34

Altman Z-score is used to assess the chance of bankruptcy of a business. It helps to determine…

Bankruptcy Risk and Z-Score Analysis Following are selected ratios for Logitech International SA for the company's 2019 fiscal year. $ thousands (except per share numbers) Current assets Current liabilities Total assets Retained earnings Price per share $1,350,436 EBIT $263.194 $717.819 Total liabilities $847.785 $2.024124 Sales revenue $2.788,322 $1.365.036 Shares outstanding 165.862,887 $39.34 Compute and interpret the Altman Z-score. Do not round computations until your final answer. Round answer to two decimal places. 4,268.91 x

Bankruptcy Risk and Z-Score Analysis Following are selected ratios for Logitech International SA for the company's 2019 fiscal year. $ thousands (except per share numbers) Current assets Current liabilities Total assets Retained earnings Price per share $1,350,436 EBIT $263.194 $717.819 Total liabilities $847.785 $2.024124 Sales revenue $2.788,322 $1.365.036 Shares outstanding 165.862,887 $39.34 Compute and interpret the Altman Z-score. Do not round computations until your final answer. Round answer to two decimal places. 4,268.91 x

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Using the fiscal year end 2019 annual report for General Mills, Inc. and the figures from the 2017…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: The following financial information is available for Sheridan Ltd. as at December 31 (in thousands,…

A: Profit available to common stock holders= Profit- Preference dividend EPS= Profit available to…

Q: Fundamentals of Corporate Finance by Brealey, Myers, and Marcus Financial Statements. South Sea…

A: Answer - Working Notes - 1. Owners’ Equity 2018 = Total Assets - Total LiabilitiesOwners’ Equity =…

Q: Royalbird Co. reports the following information for 2020: sales revenue $762,900, cost of goods sold…

Q: Here is financial information for Glitter Inc. December 31, 2020 December 31, 2019 Current…

A: Horizontal analysis is the analysis made out of the comparison of financial statements for multiple…

Q: The following data is available for the years ended 2020 and 2021 for Bunting Company.…

A: Market Ratios: The financial measurements used to assess the value of the stocks of publicly listed…

Q: Gross Profit Percentage Calculate the company's 2020 gross profit percentage and compare the result…

A: Gross profits are profits before operating expenses.

Q: The following amounts were taken from the financial statements of Sheffield Company: 2020…

A: Profit margin determines how much money a company or business activity makes by dividing income by…

Q: CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31, in thousands, ercept per share…

A: 2020 ($) 2019($)Total equity 1832771…

Q: Bankruptcy Risk and Z-Score Analysis Following are selected ratios for Logitech International SA for…

A: The Altman Z-score is the output of a credit-strength test that gauges a publicly traded…

Q: calculate the: -after-tax cost of debt -the cost of preferred stock -the cost of equity from…

A: A combination of long-term debts and different types of stocks to raise funds for the business…

Q: Assume General Motors announced a quarterly profit of $119 million for 4th quarter 2022. Below is a…

A: Total assets is always equal to the sum of total liabilities and stockholders' equity. The…

Q: Naboo Manufacturing 2019 Balance Sheet Cash Inventories Accounts Receivable Net Fixed Assets Total…

A: The ratio of a company's net income to it's own shareholders' equity is known as return on equity…

Q: 16. Morgan Company reported the following information for the year ended December 31, 2019: Net…

A: EARNINGS PER SHAREEarnings Per Share is the Ratio between Net Income for Common Stockholders Equity…

Q: The Diversified Portfolio Corporation provides investment advice to customers. A condensed income…

A: Cash Flow Statement :— It is one of the financial statement that shows change in cash and cash…

Q: Applying the Accounting Equation and Calculating Return on Equity and Debt-to-Equity Ratio At the…

A: Debt-to-Equity Ratio: The debt-to-equity ratio is a financial metric that compares a company's total…

Q: Bankruptcy Risk and Z-Score Analysis Following are selected ratios for Logitech International SA for…

A: The formula for calculating the Altman Z-score is If the value is greater than 2.99, the firm is in…

Q: Debt Management Ratios Financial statements for Steele Inc. follow. Steele Inc. Consolidated…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Sales are expected to grow by 14% next year. Assuming no change in operations from this year to next…

A: Spontaneous liabilities = Accounts payables + accruals Current Spontaneous liabilities =$2000+$1400…

Q: What would be the classified Balance Sheet for Sandpiper as of December 31, 2020? After…

A: Calculate Current ratio, Quick ratio, Debt to assets ratio, Ratio of fixed assets to long-term…

Q: Here is financial information for Windsor, Inc. December 31, 2022 December 31, 2021 Current assets…

A: Comparative financial statements are used to compare two or more years to understand the financial…

Q: The following information is provided for Apolis Inc. Total common stockholders' equity on Dec. 31,…

A: Net income=Dividends declaredPayout ratio Return on equity=Net incomeAverage common stockholders'…

Q: Find for Armstrong Company and Blair Company : Liquidity Ratio (a) Current Ratio Market tests…

A: Liquidity ratios: These ratios reflect the liquidity position of the company to settle its short…

Q: The annual financial statements of Hunter Ltd for the financial years ended 31 December 2018 and…

Concept explainers

Operating Cash Flows

A cash flow statement (CFS) helps the company to know the amount of cash at its disposal, the activities that lead to earning cash, and the activities which require cash expenditure for a particular period. The statement represents the liquidity of the company.

Question

Bankruptcy Risk and Z-Score Analysis
Following are selected ratios for Logitech International SA for the company's 2019 fiscal year.
$ thousands (except per share numbers)
Current assets
Current liabilities
Total assets
Retained earnings
Price per share
Check
$1,350,436 EBIT
$717,819 Total liabilities
Compute and interpret the Altman Z-score.
Do not round computations until your final answer. Round answer to two decimal places.
4,268.91
x
$263.194
$847.785
$2.024,124 Sales revenue
$2.788,322
$1.365.036 Shares outstanding 165.852.887
$39.34

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Concept of Altman Z-score

VIEW

Step 2: Calculation of Altman Z-score

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

What is the Financial Analysis of each year?
assist
GM has the following balances at Dec31,2021: Operating Assets $ 1,200,000 Financial Assets 800,000 Operating Liabilities 200,000 Financial liabilities 1,400,000 Operating Income 200,000 Tax Rate % 40 Net Income 110,000 Preferred Stock dividends 10,000 Required: Calculate the following (use 2021 ending balances only): Return on Net Operating Assets – RNOA Return on Common Equity – ROCE Justify and analyze your findings in required (1)
Find earnings per share 2019
Bankruptcy Risk and Z-Score Analysis Following are selected ratios for Logitech International SA for the company's 2019 fiscal year. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. in thousands (except price per share and shares outstanding) $1,350,436 EBIT $488,117 Total liabilities i Current assets Current liabilities Total assets $263,194 $576,494 $1,376,404 Sales revenue $1,896,059 Retained earnings $1,365,036 Shares outstanding 165,862,887 Price per share $39.34 Compute and interpret the Altman Z-score. Note: Convert shares outstanding to "in thousands" for your computation. Z-score
Bankruptcy Risk and Z-Score Analysis Following are selected ratios for Tesla for two recent fiscal years. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. Ratio Current ratio Working capital to total assets Retained earnings to total assets EBIT to total assets EBITDA to total assets Market value of equity to total liabilities Sales to total assets Compute and interpret Altman Z-scores for the company for both years. Year Z-score 2017 2018 2018 2017 1.135 0.831 0.642 0.5430 (0.177) (0.1788) (0.002) (0.0549) 0.061 0.0527 3.490 2.8830 1.316 0.9950 0 0 Check Is the company's bankruptcy risk increasing or decreasing over this period? Increasing Decreasing ◆
The following financial information is available for Blossom Ltd. as at December 31 (in thousands, except for per share amounts): 2021 2020 2019 Profit $1,721 $1,854 $2,317 Preferred share dividends (total) $73 $43 $30 Weighted average number of common shares 437 435 436 Dividends per common share $2.50 $2.25 $2.10 Market price per common share $43.00 $49.75 $56.25 (a)Calculate the earnings per share, price-earnings ratio, and payout ratio for the common shareholders for each of the three years. 2021 2020 2019 Earnings per share (Round answer to 2 decimal places, e.g. 5.25.) $enter Earnings per share in dollars rounded to 2 decimal places $enter Earnings per share in dollars rounded to 2 decimal places $enter Earnings per share in dollars rounded to 2 decimal places Price-earnings ratio (Round answer to 1 decimal place, e.g. 15.5.) enter Price-earnings ratio in times rounded to 1…
Consider the following partial income statements and balance sheets for Lillard Corp. For the year ended December 31, Net income Less income attributable to noncontrolling 5,700 interests Net income attributable to Lillard Corp. 100,400 107,300 Lillard Corp. shareholders' equity Noncontrolling interests Total equity What is Lillard's return on equity for 2024? 11.7% O 11.5% 12.3% 11.9% 2024 2023 108,000 113,000 11.1% 7,600 Dec. 31, 2024 Dec. 31, 2023 861,000 888,000 32,400 30,600 893,400 918,600
Bankruptcy Risk and Z-Score Analysis Following are selected ratios for Logitech International SA for the company's 2019 fiscal year. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. in thousands (except price per share and shares outstanding) $1,350,436 EBIT $263,194 $509,651 Total liabilities $601,927 $1,979,709 165,862,887 Current assets Current liabilities Total assets Retained earnings Price per share $1,437,128 Sales revenue $1,365,036 Shares outstanding $39.34 Compute and interpret the Altman Z-score. Note: Convert shares outstanding to "in thousands" for your computation. Z-score Check 0

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS