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 0.061 0.0527 Market value of equity to total liabilities 3.490 2.8830 Sales to total assets 1.316 0.9950 2018 2017 1.135 0.831 Compute and interpret Altman Z-scores for the company for both years. Year Z-score 2017 2018 0 0 Check 0.642 0.5430 (0.177) (0.1788) (0.002) (0.0549) Is the company's bankruptcy risk increasing or decreasing over this period? Increasing Decreasing

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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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
◆
Transcribed Image Text: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 ◆
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