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
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.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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