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EMPEROR WATCH ANALYSIS

387 141.907 139.672 157.738 avge days to pay payables

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Unformatted text preview: 387 141.907 139.672 157.738 Avge Days to Pay Payables 21.353 5.152 2.894 2.985 PP&E Turnover 3.807 26.890 34.968 30.381 Gross Margin 0.199 0.197 0.190 0.188 Emperor again has the higher operating profit margin, but lower asset turnover comparing with Chow. When we examine PP&E turnover, we find that chow has lower PPE turnover than EM. Both companies have modest gross margins (around 20%). Chow has the shorter accounts receivable collection period. EM is shorting its receivable collection period after IPO. While EM has the longer inventory holding period when comparing with CHOW. The result is that Chow is benefiting from the fact that it manufactures products for others. Emperor has about ten times longer payment period for accounts payable than Chow. Analysis Analysis Analysis Analysis of of of of leverage: leverage: leverage: leverage: CHOW: CHOW: CHOW: CHOW: Analysis Analysis Analysis Analysis of of of of Leverage Leverage Leverage Leverage- Long-Term Long-Term Long-Term Long-Term Capital Capital Capital Capital Structure Structure Structure Structure Debt to Equity Ratio 0.023 0.022 0.082 0.106 FFO to Total Debt 0.298 7.095 3.444 1.560 CFO to Total Debt 0.345-8.050 0.847 0.612 Analysis Analysis Analysis Analysis of of of of Leverage Leverage Leverage Leverage- Short-Term Short-Term Short-Term Short-Term Liquidity Liquidity Liquidity Liquidity Current Ratio 2.699 3.514 2.993 3.334 Quick Ratio 0.445 0.403 0.452 0.532 EBIT Interest Coverage 35.263 39.882 28.703 28.460 EBITDA Interest Coverage 35.263 39.882 28.703 28.460 Net Borrowing Cost (NBC) 0.023 0.104 0.091 0.043 Spread (RNOA - NBC) 0.085 0.053 0.088 0.095 Financial Leverage (LEV) 0.131 0.034 0.066 0.107 ROE = RNOA + LEV*Spread 0.119 0.160 0.185 0.148 EM: EM: EM: EM: Analysis Analysis Analysis Analysis of of of of Leverage Leverage Leverage Leverage- Long-Term Long-Term Long-Term Long-Term Capital Capital Capital Capital Structure Structure Structure Structure Debt to Equity Ratio 0.012 0.009 0.030 0.088 0.000 FFO to Total Debt 13.073 10.518 1.655 5.014 CFO to Total Debt 11.354 (6.654) (4.228) 3.696 Analysis Analysis Analysis Analysis of of of of Leverage Leverage Leverage Leverage- Short-Term Short-Term Short-Term Short-Term Liquidity Liquidity Liquidity Liquidity Current Ratio 12.208 6.391 5.448 5....
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387 141.907 139.672 157.738 Avge Days to Pay Payables...

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