energy conversion: modefinance credit report
DESCRIPTION
Energy Conversion: modeFinance Credit ReportTRANSCRIPT
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ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAAnot
available
non return extremlypathological
pathological highdanger
weak sufficient adequate good very
strongextremely
strong
Company name ENERGY CONVERSION DEVICES INC
Identification number
Country United States of America
ZIP code and city 48309 - ROCHESTER HILLS
Address 2956, Waterview Drive
+1 248 293 0440
www.energyconversiondevices.com
Legal form
Account Consolidated
Incorporation date 1960
NACE 2 Sector 2611 - Manufacture of electronic components
Listed
Status Active
MORE Credit limit Not eligible for credit on the base of the available informations
30/06/2011 30/06/2010 30/06/2009
Turnover (th e) 160,898 207,331 223,782
Rating CC B BBB
Probability of default 42.00% 3.80% 0.40%
Confidence Level 100% 100% 100%
Solvency ratios
Leverage ratio 14.23 1.29 0.46
Total asset/Total liabilties 1.07 1.77 3.18
Liquidity ratios
Current Ratio 3.79 4.58 7.54
Quick Ratio 2.82 3.78 6.30
Profitability and economic equili-
brium ratios
Return on investement ROI (%) -72.21 -62.21 2.30
Return on equity ROE (%) -1,199.97 -151.48 1.06
Asset turnover 0.60 0.37 0.29
Interest paid weight -0.09 -0.07 0.62
Gross Profit/Operating revenue 0.17 0.16 0.42
Interest Coverage ratios
EBIT interest coverage ratio -11.21 -15.02 1.34
Analysis and trend of financial
strength
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Sector Analysis
Company Healthy Balanced Vulnerable Risky
Solvency ratios
Leverage ratio 14.23 0.49 1.58 3.04 -1.91
Total asset/Total liabilties 1.07 3.03 1.62 1.23 0.89
Liquidity ratios
Current Ratio 3.79 2.62 1.70 1.26 0.78
Quick Ratio 2.82 2.06 1.26 0.91 0.45
Profitability and economic equilibrium ratios
Return on investement ROI (%) -72.21 8.93 4.19 0.31 -22.12
Return on equity ROE (%) -1,199.97 10.15 6.10 -5.06 -92.50
Asset turnover 0.60 1.02 1.15 1.10 2.47
Interest paid weight -0.09 0.01 0.12 0.08 -0.07
Gross Profit/Operating revenue 0.17 0.34 0.22 0.15 0.02
Interest Coverage ratios
EBIT interest coverage ratio -11.21 87.68 5.51 0.10 -8.02
Cash Conversion Cycle (days)
Days Sales Of Inventory (DIO) 108 45 44 43 42
Days Sales Outstanding (DSO) 61 67 68 58 32
Days Payable Outstanding (DPO) 0 30 39 48 50
Cash Conversion Cycle (DIO + DSO - DPO) 169 73 71 64 37
Numer of analyzed companies - 114 196 59 7
(Average) Rating CC A BBB B CC
The sector has been chosen according to:
international companies in the sector NACE 2 2611 with financial data of year 2011.
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Sector Analysis - Graphs
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Balance Sheet
BALANCE SHEET (th e) 30/06/2011 30/06/2010 30/06/2009
Accounting practice Local GAAP Local GAAP Local GAAP
Exchange rate USD - EUR 0.6919 0.81493 0.70751
Total assets 268,787 563,888 761,354
Fixed assets 83,795 275,662 442,897
Intangible fixed assets - 0 0
Tangible fixed assets 63,153 245,340 434,647
Other fixed assets 20,642 30,323 8,250
Current assets 184,992 288,226 318,456
Stocks 47,394 50,114 52,544
Debtors 27,090 58,692 49,089
Other current assets 110,508 179,420 216,823
Cash & cash equivalent 90,428 157,224 213,359
Shareholders funds 17,648 245,895 521,685
Capital 369 396 324
Other shareholders funds 17,279 245,499 521,361
Total liabilities 251,139 317,993 239,669
Non current liabilities 202,362 255,007 197,458
Long term debt 173,835 215,101 190,594
Other non-current liabilities 28,527 39,906 6,864
Current liabilities 48,777 62,986 42,211
Loans 0 0 0
Creditors 0 0 0
Other current liabilities 48,777 62,986 42,211
Total shareh. funds & liab. 268,787 563,888 761,354
NET DEBT (th e) 30/06/2011 30/06/2010 30/06/2009
Short term debts 0 0 0
Long term debt 173,835 215,101 190,594
Cash & cash equivalent 90,428 157,224 213,359
Net debt 83,408 57,877 -22,764
30/06/2011 30/06/2010 30/06/2009
Working capital - - -
Net Current Assets 136,215 225,240 276,245
30/06/2011 30/06/2010 30/06/2009
Days Sales Of Inventory (DIO) 108 88 86
Days Sales Outstanding (DSO) 61 103 80
Days Payable Outstanding (DPO) 0 0 0
Cash Conversion Cycle (DIO + DSO - DPO) 169 191 166
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Income Statement
INCOME STATEMENT (th e) 30/06/2011 30/06/2010 30/06/2009
Accounting practice Local GAAP Local GAAP Local GAAP
Exchange rate USD - EUR 0.6919 0.81493 0.70751
Sales 160,898 207,331 223,782
Revenues growth (%) -22.4 -7.4 -
Other revenues +/- variation in inventories and contract in progress + Fixed assets
own construction capitalized0 0 0
Operating revenue / turnover 160,898 207,331 223,782
Total operating costs 357,909 558,409 209,210
Costs growth (%) -36 167 -
Service costs - - -
Material costs - - -
Costs of employees - - -
EBITDA -26,198 -31,677 38,348
Depreciation 170,813 319,400 23,776
EBIT -197,011 -351,078 14,572
Financial P/L -14,663 -23,109 -7,982
Financial revenue 1,801 2,151 3,697
Financial expenses 16,464 25,260 11,680
Interest paid 17,577 23,369 10,889
P/L before tax -211,674 -374,187 6,590
Extr. and other P/L 176 -119 0
Extr. and other revenue - - -
Extr. and other expenses - - -
P/L before tax + Extr. and other P/L -211,498 -374,305 6,590
Taxation 273 -1,832 1,044
P/L for period -211,771 -372,474 5,546
30/06/2011 30/06/2010 30/06/2009
Costs of Good Sold 133,680 173,815 130,379
Gross Profit 27,218 33,516 93,403
Other Operating Expenses 224,229 384,594 78,831
30/06/2011 30/06/2010 30/06/2009
Cash flow -40,958 -53,073 29,322
Added value - - -
30/06/2011 30/06/2010 30/06/2009
Number of employees 1,300 1,500 1,800
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Evolutions and trends
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Qualitative information
Full overview Energy Conversion Devices, Inc. (ECD) is a publicly quoted company that produces and commercializes materials,
products, and production processes for the alternative energy generation, energy storage, and information tech-
nology markets. The company was founded in 1960 by Stanford Ovshinsky and has its registered head office in
Rochester Hills, Michigan in the United States. Energy Conversion Devices is a world leader in the synthesis of new
materials and the development of advanced production technology and innovative alternative energy products and
solutions. The company’s portfolio of alternative energy solutions and proprietary information processing techno-
logies features advances in solar electric power generation, NiMH (nickel - metal hydride battery) batteries and
fuel cell, solid hydride storage and phase - change memory technologies. ECD designs and builds manufacturing
machinery that incorporates its proprietary production processes, maintains ongoing research and development
programs to continually improve its products, and develops new applications for its technologies. Energy Conver-
sion Devices further has two strong business segments: United Solar Ovonic and Ovonic Materials. United Solar
Ovonic manufactures and sells solar modules based on proprietary thin - film triple junction amorphous silicon
technology. Its solar panels are flexible, lightweight and rugged as well as generates up to 20 percent more electri-
city than conventional crystalline products. Ovonic Materials segment includes royalty - bearing consumer battery
business, the manufacture of nickel hydroxide materials used in NiMH batteries, and the R&D (research and deve-
lopment) programs with near - term commercial opportunities of ECD. In addition to the two segments, Energy
Conversion Devices has two joint ventures: Ovonyx, Inc. and Cobasys LLC. Ovonyx, Inc. was formed to commer-
cialize ECD’s proprietary phase - change semiconductor memory technology - OUM (Ovonic Unified Memory) or
PRAM (parameter random access memory). Cobasys LLC was formed to commercialize ECD’s proprietary NiMH
technology to provide advanced energy storage systems and solutions for transportation and stationary markets.
Energy Conversion Devices operates in the United States, Germany, China, Japan and Italy, among others.
History Founded by Stanford Ovshinsky.
Primary business line Engaged in the production and distribution of materials, products, and production processes for the alternative
energy generation, energy storage, and information technology markets.
Secondary business line Not available.
Main activity Manufacturing.
Secondary activity Not available.
Main products and services Not available.
Size estimate A world leader in the synthesis of new materials and the development of advanced production technology and
innovative alternative energy products and solutions.
Strategy, organization and policy Not available.
Strategic alliances Not available.
Membership of a network Not available.
Main brand names Not available.
Main domestic country United States Of America.
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Main foreign countries or regions Germany; China; Japan; Italy.
Main production sites United States of America.
Main distribution sites Not available.
Main sales representation sites Not available.
Main customers Alternative energy generation, energy storage, and information technology markets; Transportation and stationary
markets.
Auditor/Advisor/Bank
name type address
GRANT THORNTON LLP Auditor -
Computershare Investor Services Transfer Agent -
Board
name date of birth nationality function
Mr Stephen Rabinowitz - - Independent Chairman of the Board
Mr Jay Brian Knoll 17/05/1963 - Executive Vice President, Chief Restructuring Officer, Director
Mr Joseph A Avila - - Independent Director
Mr Alan E Barton - - Independent Director
Mr Robert I Frey - - Independent Director
Mr Julian Hawkins - - President, Chief Executive Officer, Director
Mr William J Ketelhut 15/10/1952 United States Independent Director
Mr George A Schreiber - - Independent Director
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Sharehoders (the first twenty shareholders ordered by Direct %))
VANGUARD GROUP, INC. THE via its funds Rating: -
Country ISO code US Operating revenue (MIL $) 2,018
NACE Rev. 2, Core code - Total Assets (MIL $) 1,830
Direct % - Number of Employees 9,500
Total % 4.58 Information date 2011/09
Address: Not available
BLACKROCK, INC. via its funds Rating: BBB
Country ISO code US Operating revenue (MIL $) 8,612
NACE Rev. 2, Core code - Total Assets (MIL $) 178,459
Direct % - Number of Employees 9,127
Total % 2.36 Information date 2011/09
Address: Not available
DIMENSIONAL FUND ADVISORS LP via its funds Rating: A
Country ISO code US Operating revenue (MIL $) 37
NACE Rev. 2, Core code - Total Assets (MIL $) 2,187
Direct % - Number of Employees 260
Total % 1.86 Information date 2011/09
Address: Not available
GUGGENHEIM CAPITAL, LLC via its funds Rating: -
Country ISO code US Operating revenue (MIL $) 17
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 540
Total % 1.75 Information date 2011/12
Address: Not available
WINTON CAPITAL MANAGEMENT LIMITED via its funds Rating: AA
Country ISO code GB Operating revenue (MIL $) 441
NACE Rev. 2, Core code - Total Assets (MIL $) 255
Direct % - Number of Employees 195
Total % 1.51 Information date 2011/09
Address: Not available
WATER STREET CAPITAL, INC. via its funds Rating: -
Country ISO code US Operating revenue (MIL $) 2
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 18
Total % 1.35 Information date 2011/09
Address: Not available
VALINOR MANAGEMENT, LLC via its funds Rating: -
Country ISO code US Operating revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees -
Total % 1.33 Information date 2011/09
Address: Not available
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
ROYAL BANK OF CANADA RBC via its funds Rating: -
Country ISO code CA Operating revenue (MIL $) 24,174
NACE Rev. 2, Core code - Total Assets (MIL $) 754,948
Direct % - Number of Employees 68,480
Total % 1.26 Information date 2011/09
Address: Not available
CREDIT SUISSE GROUP AG via its funds Rating: -
Country ISO code CH Operating revenue (MIL $) 32,087
NACE Rev. 2, Core code - Total Assets (MIL $) 1,098,345
Direct % - Number of Employees 50,100
Total % 1.15 Information date 2011/09
Address: Not available
D. E. SHAW & CO., L.P. via its funds Rating: -
Country ISO code US Operating revenue (MIL $) 119
NACE Rev. 2, Core code - Total Assets (MIL $) 24,014
Direct % - Number of Employees 159
Total % 0.73 Information date 2011/09
Address: Not available
GOLDMAN SACHS GROUP, INC via its funds Rating: -
Country ISO code US Operating revenue (MIL $) 39,161
NACE Rev. 2, Core code - Total Assets (MIL $) 911,332
Direct % - Number of Employees 35,700
Total % 0.56 Information date 2011/09
Address: Not available
AQR CAPITAL MANAGEMENT LLC via its funds Rating: -
Country ISO code US Operating revenue (MIL $) 10
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 75
Total % 0.53 Information date 2011/09
Address: Not available
BARCLAYS PLC via its funds Rating: -
Country ISO code GB Operating revenue (MIL $) 48,607
NACE Rev. 2, Core code - Total Assets (MIL $) 2,332,039
Direct % - Number of Employees 147,500
Total % 0.51 Information date 2011/09
Address: Not available
SUSQUEHANNA INTL GROUP via its funds Rating: -
Country ISO code US Operating revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees -
Total % 0.43 Information date 2011/09
Address: Not available
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
GOVERNMENT OF NORWAY via its funds Rating: -
Country ISO code NO Operating revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees -
Total % 0.39 Information date 2010/12
Address: Not available
INVESCO LTD. via its funds Rating: BB
Country ISO code BM Operating revenue (MIL $) 3,528
NACE Rev. 2, Core code - Total Assets (MIL $) 20,444
Direct % - Number of Employees -
Total % 0.35 Information date 2011/09
Address: Not available
BANK OF NEW YORK MELLON CORPORATION via its funds Rating: -
Country ISO code US Operating revenue (MIL $) 14,730
NACE Rev. 2, Core code - Total Assets (MIL $) 325,266
Direct % - Number of Employees 48,700
Total % 0.33 Information date 2011/09
Address: Not available
GEODE CAPITAL MANAGEMENT, LLC via its funds Rating: -
Country ISO code US Operating revenue (MIL $) 0
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 2
Total % 0.29 Information date 2011/09
Address: Not available
WELLINGTON MANAGEMENT CO L.L.P via its funds Rating: -
Country ISO code US Operating revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees -
Total % 0.28 Information date 2011/09
Address: Not available
RENAISSANCE TECHNOLOGIES LLC via its funds Rating: -
Country ISO code US Operating revenue (MIL $) 1,245
NACE Rev. 2, Core code - Total Assets (MIL $) 948
Direct % - Number of Employees 42
Total % 0.27 Information date 2011/09
Address: Not available
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Subsidiaries (the first twenty subsidiaries ordered by Direct %)
OVONIC BATTERY COMPANY, INC. Rating: -
Country ISO code US Operating revenue (MIL $) 14
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % MO Number of Employees 138
Total % - Information date 2011/10
OVONIC FUEL CELL COMPANY LLC Rating: -
Country ISO code US Operating revenue (MIL $) 1
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % MO Number of Employees 15
Total % - Information date 2011/10
OVONIC HYDROGEN SYSTEMS LLC Rating: -
Country ISO code US Operating revenue (MIL $) 1
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % MO Number of Employees 12
Total % - Information date 2011/07
SOLAR INTEGRATED TECHNOLOGIES, INC. Rating: -
Country ISO code US Operating revenue (MIL $) 15
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % MO Number of Employees 140
Total % - Information date 2011/08
UNITED SOLAR OVONIC CORPORATION Rating: -
Country ISO code US Operating revenue (MIL $) 0
NACE Rev. 2, Core code - Total Assets (MIL $) 89
Direct % MO Number of Employees 70
Total % - Information date 2010/09
UNITED SOLAR OVONIC LLC Rating: -
Country ISO code US Operating revenue (MIL $) 89
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % MO Number of Employees 1,100
Total % - Information date 2011/07
SOVLAKS Rating: -
Country ISO code RU Operating revenue (MIL $) 0
NACE Rev. 2, Core code - Total Assets (MIL $) 0
Direct % 50.00 Number of Employees 2
Total % - Information date 2011/02
SOVLAKS - BATAREYA Rating: D
Country ISO code RU Operating revenue (MIL $) 0
NACE Rev. 2, Core code - Total Assets (MIL $) 0
Direct % 50.00 Number of Employees 22
Total % - Information date 2011/02
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
ASKMORE rating guide
General vision A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of
an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk
factors.
The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial
companies by using data included in financial statements.
The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy
model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the
model are obtained by applying newly developed numerical methodologies, drawing together financial theory,
data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective
algorithm that produces a classification of each company, by taking into account any attributes (such as sector and
country) characterizing a firm.
The model gives the opportunity to assign a rating to a company even without considering a complete data analysis
and allows to process quality information. It induces a better understanding of a company’s strength and weakness
thanks to sophisticated data mining tools and taking into account the analyst knowledge.
The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the
rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium
between the different aspects, better will be the final rating.
This is done studying, evaluating and aggregating the most important sections of the financial and economic
behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Rating scale
Rating class Rating macro class Assessment
AAA
Healthy
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
economic and financial flow and fund equilibrium.
AAThe company has very strong creditworthiness. It also has a good capital structure and economic and financial
equilibrium. Difference from AAA is slight.
AThe company has a high solvency. The company is however more susceptible to the adverse effects of changes in
circumstances and economic conditions than companies in higher rated categories.
BBB
Balanced
Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial
commitments could be affected by serious unfavourable events.
BBA company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing
uncertainties or exposure to adverse business, financial, or economic conditions.
B
Vulnerable
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial
fundamentals. Adverse market events and an inadequate management could affect with high probability the
company’s solvency.
CC
Risky
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the
company’s strong disequilibrium could increase.
CThe company shows considerable pathological situations. The company’s capacity to meet its financial
commitments is very low.
D The company has not any longer the capacity to meet its financial commitments.
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
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key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Fundamental Credit Rating Ratios
Analysis area Ratio Assessment
Solvency ratios
Leverage ratioThis measures the level of total liabilities of the company in comparison
with equity.
Assets to debtThis indicates company’s solvency. The company shows a level of deficit
when the value of this ratio is under one unit.
Financial ratios Fixed Assets coverage ratioThis is calculated only for holdings. It measures the capital structure i.e.
whether a company covers the fixed assets with long term capital.
Liquidity ratios
Current ratioThis measures whether a company has sufficient short-term assets to cover
its short-term liabilities.
Quick ratioThis compares current liabilities only to those assets that can be readily
turned into cash.
Profitability and economic ratios
Return on Investement(ROI)This measures the profitability of company investments without regard to
the way the investment is financed.
Return on Equity(ROE) This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level
assumed from the ratio depends on the sector in which the company
operates.
Profit margin This indicates the profitability of sales.
Interest coverage ratio Interest Paid coverage
This indicate the ability of the company to cover interest expenses through
the economic margins (Gross profit and EBIT) and through the cash flow
from operating activities.
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
MORE Credit Limit, Probability of default and Confidence Level
MORE Credit Limit MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial
relationship with the analyzed company with an outlook of one year.
modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size;
• Years in Business;
• Average number of suppliers;
• Liquidity of the company and the comparison with its sector;
• The funds dedicated to be paid to suppliers;
• The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual
public data. This value should be reviewed by paying attention to the Confidence Level value and by using other
information such as other business information, news... etc; and private information such as the relationship with
client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence
Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of
confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go
into default.
As the probability of default is strongly affected by the economic climate that the company is operating in,
companies in the same MORE class will not necessarily have the same probability of default.
The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
∑Available Information∑
Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in
availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the
MORE rating is able to take into account for each company.
For companies with fully populated records a confidence level of 100% would be applied: companies where no
financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
ENERGY CONVERSIONDEVICES INCTuesday, 14 February 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Notes and disclaimer
NOTES modeFinance has based the present analysis on the company available financial statements, coming from one or
more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s
database etc.
DISCLAIMER All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any
form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of
the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot
be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will
be based on information gathered in good faith from both primary and secondary sources, whose accuracy we
are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken
based on any information that may subsequently prove to be incorrect.
Contacts
Company modeFinance
Products MORE rating
Where AREA Science Park
34149 Trieste, via Padriciano 99 - ITALY
Info [email protected]
web www.modefinance.com
Phone +39 040 3755337