Credit Analysis:Altman Z-Score Model

NAME OF COMPANY Eastern Housing Ltd.

FIRST CALENDAR YEAR OF DATA NUMBER OF YEARS OF DATA

2007 5

Please input your assigned firm's value in the following table. Results will be computed autom

Requirement: hardcopy of this template and photocopies of your assigned firm's in If anyboby collected the softcopy of annual reports, then inputs all the requirment Submission Date: 22-12-12. It will be a easier term paper... Best of luck
2007
140,179,500

Particulars Operating Income Net Income Current Assets Current Liabilities Net Working Capital Total Assets Total Liabilities Book Value of Equity Or Stockholders' Equity Retained Earnings

71481600 6593986300 5424966100 1169020200 6666245900 5873847200 792398700 171830700

Degree of Financial Leverage

% change in net income % change in operating income Degree of Financial Leverage Degree of Financial Leverage (Average) 1.51

Interpretation: For every 1 percent change in operating income , net income changes 1.51 percent dye to financi Financial leverage tends to increase the risk of ownership for sareholders. Altman Z score Formula
6.56 net working capital /total assets 3.26 Retained Earnings/Total Assets 1.05 Operating Income/Total assets

0.1754 0.0258 0.0210

6.72 Book Value of Equity/Total Liabilities

0.1349 2.1630 1.8306

Z Score Z Score (Average)

Interpretation: Where z< 1.23 indicates a bankruptcy prediction, 1.23 z 2.90 indicates a gray area, and z> 2.90 indicates As z = 1.83, it indicates a gray area. That's mean it can be concluded that firm's credit risk is undefined. Lender will be in co

Score Model

s will be computed automatically.Then just interpret the results.

your assigned firm's income statement and balance sheet during the period of 2007-2011. If puts all the requirments in CDs and submit it along with the hard copy of this template. ... Best of luck:)
2008
166,053,800

2009
155,944,800

2010
200,846,700

2011
195,781,700

69859300 6797846400 5559815600 1238030800 6876643800 6076442600 800201200 179633200

75443200 7366120800 6099179100 1266941700 7440874400 6627299400 813575000 193007000

112564700 9340540500 8078991900 1261548600 9422547800 8570876300 851671500 231103500

96137600 12698478100 11562822700 1135655400 12787055100 11959073700 827981400 207413400

-2.27% 18.46% -0.12

7.99% -6.09% -1.31

49.20% 28.79% 1.71

-14.59% -2.52% 5.79

ges 1.51 percent dye to financial leverage.

0.1800 0.0261 0.0241

0.1703 0.0259 0.0210

0.1339 0.0245 0.0213

0.0888 0.0162 0.0153

0.1317 2.1765

0.1228 2.0485

0.0994 1.6484

0.0692 1.1168

a gray area, and z> 2.90 indicates no bankruptcy. is undefined. Lender will be in confused position to predict it's credit risk.

riod of 2007-2011. If anyboby collected the softcopy of annual reports, then inputs all the r of this template.

s, then inputs all the requirments in CDs and submit it.