Interimreport1 January–31 March2024 Elo Mutual Pension Insurance Company
Excel Financial Analysis Techniques
1. Example Index
Copyright 2018 CapitaLogic Limited
Worksheet Description Excel technique
1 ZChina-score of BYD
2 Balance sheet of Pentair
3 Income statement of Pentair
4 Cash flow statement of Pentair
5 M-score of Pentair
6 Z-score of Pentair
This Excel workbook is prepared in accordance with
Chapter 10 of the text book
"Managing Credit Risk Under The Basel III Framework, 3rd
ed"
Authored by : Dr. LAM Yat-fai (林日辉)
Principal, Structured Products Analytics, CapitaLogic Limited
Adjunct Professor of Finance, City University of Hong Kong
Doctor of Business Administration
CFA, CAIA, CAMS, FRM, PRM
Website: https://sites.google.com/site/crmbase
E-mail: crmbasel@gmail.com
Copyright 2018 CapitaLogic Limited
2. Example 1 Z China-score of BYD
BYD 31 Dec 2016 30 Dec 2015 30 Dec 2014 31 Dec 2016 30 Dec 2015 30 Dec 2014
Total liabilities 8,999 8,966 7,929 X6 0.614980 0.618046 0.592070 α6 -0.46
Total assets 14,633 14,507 13,392
Net profit 78 548 397 X7 0.005330 0.037775 0.029645 α7 9.32
Total assets 14,633 14,507 13,392
Current assets 7,759 7,824 7,041 X8 0.029386 -0.000551 0.028226 α8 0.388
Current liabilities 7,329 7,832 6,663
Total assets 14,633 14,507 13,392
Retain earnings 307 307 238 X9 0.020980 0.021162 0.017772 α9 1.158
Total assets 14,633 14,507 13,392
ZChina-score 0.319485 0.609052 0.552467
Copyright 2018 CapitaLogic Limited
3. Example 2 Balance sheet
Pentair Ltd. 31 Dec 2012 30 Dec 2011 31 Dec 2010
Assets
Current Assets
Cash And Cash Equivalents 261,341 50,077 46,056
Short Term Investments - - -
Net Receivables 1,292,648 569,204 573,254
Inventory 1,380,271 449,863 405,356
Other Current Assets 326,108 168,691 44,631
Total Current Assets 3,260,368 1,237,835 1,069,297
Long Term Investments - - -
Property Plant and Equipment 1,224,488 387,525 329,435
Goodwill 4,894,512 2,273,918 2,066,044
Intangible Assets 1,909,656 592,285 453,570
Accumulated Amortization - - -
Other Assets 506,287 94,750 55,187
Deferred Long Term Asset Charges - - -
Total Assets 11,795,311 4,586,313 3,973,533
Liabilities
Current Liabilities
Accounts Payable 864,663 413,271 460,903
Short/Current Long Term Debt 3,096 4,862 4,951
Other Current Liabilities 670,162 223,708 80,942
Total Current Liabilities 1,537,921 641,841 546,796
Long Term Debt 2,454,278 1,304,225 702,521
Other Liabilities 831,653 403,898 349,986
Deferred Long Term Liability Charges 488,102 188,957 169,198
Minority Interest 116,497 114,063 111,879
Negative Goodwill - - -
Total Liabilities 5,428,451 2,652,984 1,880,380
Copyright 2018 CapitaLogic Limited
4. Example 3 Income statement
Pentair Ltd. 31 Dec 2012 30 Dec 2011 31 Dec 2010
Total Revenue 4,416,146 3,456,686 3,030,773
Cost of Revenue 3,146,554 2,382,964 2,100,133
Gross Profit 1,269,592 1,073,722 930,640
Operating Expenses
Research Development 93,557 78,158 67,156
Selling General and Administrative 1,158,436 694,841 550,501
Non Recurring 60,718 200,520 -
Others - - -
Total Operating Expenses - - -
Operating Income or Loss -43,119 100,203 312,983
Income from Continuing Operations
Total Other Income/Expenses Net -72,465 1,432 1,263
Earnings Before Interest And Taxes -113,428 103,533 316,354
Interest Expense 70,537 60,267 37,379
Income Before Tax -183,965 43,266 278,975
Income Tax Expense -79,353 46,417 88,943
Minority Interest -2,574 -4,299 -4,493
Net Income From Continuing Ops -104,612 -3,151 190,032
Non-recurring Events
Discontinued Operations - - -626
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Copyright 2018 CapitaLogic Limited
5. Example 4 Cash flow statement
Pentair Ltd. 31 Dec 2012 30 Dec 2011 31 Dec 2010
Net Income -107,186 -7,450 184,913
Operating Activities Cash Flows Provided By or Used In
Depreciation 163,792 108,132 84,179
Adjustments To Net Income -54,850 254,202 28,325
Changes In Accounts Receivables 55,720 1,348 -62,344
Changes In Liabilities -116,125 -52,770 81,778
Changes In Inventories 125,099 18,263 -44,495
Changes In Other Operating Activities -1,064 -5,798 -6,473
Total Cash Flow From Operating Activities 67,960 320,226 270,376
Investing Activities Cash Flows Provided By or Used In
Capital Expenditures -94,532 -73,348 -59,523
Investments - - -
Other Cash flows from Investing Activities 470,109 -734,738 -790
Total Cash Flows From Investing Activities 375,577 -808,086 -60,313
Financing Activities Cash Flows Provided By or Used In
Dividends Paid -113,951 -79,537 -80,112
Sale Purchase of Stock -265,982 537 -14,771
Net Borrowings 227,107 588,216 -98,344
Other Cash Flows from Financing Activities -74,752 - -
Total Cash Flows From Financing Activities -232,306 503,553 -190,591
Effect Of Exchange Rate Changes 33 -11,672 -6,812
Change In Cash and Cash Equivalents 211,264 4,021 12,660
Copyright 2018 CapitaLogic Limited
6. Example 5 M-score of Pentair
Pentair Ltd. 31 Dec 2012 30 Dec 2011
Net Income -107,186 -7,450
Total Cash Flow From Operating Activities 67,960 320,226
Total Assets 11,795,311 4,586,313
Total Revenue 4,416,146 3,456,686
Net Receivables 1,292,648 569,204
Total Revenue 4,416,146 3,456,686
Fixed Assets 8,534,943 3,348,478
Property Plant and Equipment 1,224,488 387,525
Total Assets 11,795,311 4,586,313
Total Liabilities 5,428,451 2,652,984
Total Assets 11,795,311 4,586,313
Selling General and Administrative 1,158,436 694,841
Total Revenue 4,416,146 3,456,686
Gross Profit 1,269,592 1,073,722
Total Revenue 4,416,146 3,456,686
Depreciation 163,792 108,132
Property Plant and Equipment 1,224,488 387,525
Ratio Beta
TATA -0.01484878 -0.01484878 -4.679
SGI 4416146 3456686 1.277566432 -0.892
DSRI 0.292709525 0.164667546 1.777578722 -0.92
AQI 0.619776367 0.645606395 0.95999106 -0.404
LVGI 0.4602211 0.578456813 0.795601486 0.327
SGAI 0.26231832 0.20101363 1.304977779 0.172
GMI 0.287488684 0.310621792 1.080466153 -0.528
DEPI 0.117981963 0.218158928 1.849087118 -0.115
M-score 1.448166097
Copyright 2018 CapitaLogic Limited
7. Example 6 Z-score of Pentair
Pentair Ltd. 31 Dec 2012 30 Dec 2011 31 Dec 2010 31 Dec 2012 30 Dec 2011 31 Dec 2010
Market value of equity 10,135,231 6,864,737 7,528,734 X1 1.867058 2.587553 4.003836 α1 0.6
Book value of liabilities 5,428,451 2,652,984 1,880,380
Current assets 3,260,368 1,237,835 1,069,297 X2 0.146028 0.129951 0.131495 α2 1.2
Current liabilities 1,537,921 641,841 546,796
Total assets 11,795,311 4,586,313 3,973,533
Retain earnings 1,292,288 1,465,780 1,624,605 X3 0.109559 0.319599 0.408857 α3 1.4
Total assets 11,795,311 4,586,313 3,973,533
EBIT -113,428 103,533 316,354 X4 -0.009616 0.022574 0.079615 α4 3.3
Total assets 11,795,311 4,586,313 3,973,533
Sales 4,416,146 3,456,686 3,030,773 X5 0.374398 0.753696 0.762740 α5 0.999
Total assets 11,795,311 4,586,313 3,973,533
Z-score 1.791142 2.983349 4.157203
Copyright 2018 CapitaLogic Limited