computron industries from a financial analyst’s perspective

Computron Industries

From a Financial Analyst’s Perspective

WMBA 507 Financial ManagementSpring 2013, Session 1

By Cheung, AlleyLe, Trung

What a financial analyst would want

to know: For share/bond buyers:

Accounting ratios How companies deploy tactics to

meet their budget targets How management sets operating

standards to quell investor fears

For investors: What’s the company’s liquidity

flows How management uses corporate

funds How much liquidity remains in the

company’s coffers Statement of cash flows to

determine corporate liquidity trends

Asset Management Ratios

Debt Management Ratios

2009 2010 20110.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Debt RatioComputronDebt RatioIndAvg

More Ratios

2009 2010 2011

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

ROEComputronROE Ind AvgROAComputronROA Ind Avg

Market Value Ratios

Basic Earning Power

2009 2010 20110.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

BEPComputronBEP Ind Avg

Times Interest Earned Ratios

2009 2010 20110.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

TIEComputronTIE IndAvg

Recommendations To Stock/bond buyers:

Not to invest in Computron Need further understandings of its

financial data Fluctuated operation Low potential growth

To investors: Possible investment for risk takers Due to low debt ratio Shows ability to recover from bad

situations Do not merge Consider to become the biggest

shareholder Keep management and operation levels