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Unformatted text preview: 450 11.394 Quick Ratio 2.439 1.648 1.574 1.241 1.774 EBIT Interest Coverage 104.531 116.583 35.932 433.369 219.117 EBITDA Interest Coverage 104.531 116.583 35.932 433.369 219.117 Net Borrowing Cost (NBC) (0.129) (0.024) 0.007 0.023 Spread (RNOA - NBC) 0.264 0.097 0.185 0.184 Financial Leverage (LEV) 0.015 0.024 0.067 0.043 ROE = RNOA + LEV*Spread 0.139 0.074 0.205 0.215 Both two firms have little debts. For Chow and Emperor debt creates value, because their RNOA>NBC. Chow has small quick ratio which is smaller than 1 and meanwhile its average days to pay payables is quite shorter than others, which implicates that Chow use the money earned immediately to pay the debt. It might cause by Chow does a widely kinds of business and investment. Chow ’ s EBIT interest coverage is decent and significantly smaller than Emperor. Conclusions: Conclusions: Conclusions: Conclusions: Chow is performing general, on a par (or slightly better) than Emperor. The Emperor is recently IPO (in 2008), and it is in the rapid growth phrase. While the Chow has a much longer listed period. It has already stepped into a modest or steadily growth phrase....
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- Summer '13
- Financial Ratio, net operating assets, Chow, Leverage (LEV)