Assesment of the Company’s Condition

Based on the Distributions

of the Financial Ratios

Prof. Zbigniew Krysiak

Warsaw School of Economics

Zbigniew.Krysiak@IMSchuman.com
Phone +48 796 140 400

Warszawa 2024

Robert Schuman Unity Solidarity Peace

1
1886-1963
 CONSTRUCTION INDUSTRY IN POLAND
SAMPLE OF 20 COMPANIES FROM THE CONSTRUCTION SECTOR
BUDIMEX S. A., PORR S.A., DOM DEVELOPMENT S.A.,
ECHO INVESTMENT S.A., ATAL S.A., KAIIMA POLAND SP. Z O.O.,
MURAPOL S.A., PANATTONI DEVELOPMENT EUROPE SP. Z O.O.,
ROBYG CONSTRUCTION SP. Z O.O., ARCHICOM S.A., HB REAVIS HOLDING
S.A.,
DEVELIA S.A., MARVIPOL DEVELOPMENT S.A.,
ATLAS WARD POLSKA SP. Z O.O., ALDESA CONSTRUCCIONES POLSKA SP. Z
O.O.,
RONSON DEVELOPMENT SE, BOUYGUES IMMOBILIER POLSKA SP. Z .O.O.,
WHOTE STONE DEVELOPMENT SP. Z O.O., ZAKŁAD BUDOWLANO-
MONTAŻOWY GRIMBUD SP. Z O.O., J.W. CONSTRUCTION HOLDING S.A.
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 Liquidity Ratios
Liquidity Ratios for Company ATAL S.A. in period 2018-2020

Range of the Most Average Values of the Ratios

Type of Ratio Formulas of the Ratios
Frequent Values
2018 2019 2020

Current Current Assets/Current

1,5-2,0 2,77 3,19 2,28
Liquidity Ratio Liabilities

Accelerated (Current Assets - Inventory)

0,8-1,5 0,34 0,23 0,43
Liquidity Ratio /Current Assets

Quick Liquidity
Cash/Current Liabilities 0,2 0,31 0,21 0,13
Ratio

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 Debt Ratios
Debt Ratios for Company ATAL S.A. in period 2018-2020
Range of the Average Values of the Ratios
Type of Ratio Formula of the Ratios Most Frequent
Values 2018 2019 2020

Total Liability / Total

Overall Debt Ratio 0,57-0,67 0,54 0,67 0,66
Assets

Long Term Liability/

Liability Structure Ratio 0,39 0,56 0,38
Total Liability

Long Term Liability/

Long-Term Debt Ratio 0,5-1 0,46 1,16 0,73
Total Equity

Total Debt/Total <1,0 for big

Debt-to-Equity Ratio 1,18 2,05 1,92
Liability companies

Long-Term Liabilities
Fixed Assets Net/Long
Coverage Ratio with net 0,017 0,014 0,016
Term Liability
Fixed Assets

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 Profitability Ratios
Profitability Ratios for Company ATAL S.A. in period 2018-2020
Range of the Average Values of the Ratios
Most
Type of Ratio Formulas of the Ratios
Frequent
2018 2019 2020
Values

Earning Before
Gross Profitability Ratio Max 0,24 0,20 0,18
Interest/Total Revenue

Assets Profitability Net Profit/Total Assets

Max 0,11 0,05 0,06
Ratio

Net Profit/Net Revenue

Sales Profitability Ratio of Sold Product Max 0,20 0,16 0,14

Cash Inflow From

Cash Profitability Ratio Sales/Net Revenue of Max 0,04 -0,20 0,05
of Sold Products Sold Products

Return on Equity Ratio Net Profit/Total Equity Max 0,24 0,15 0,18

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 Turnover Ratios
Turnover Ratios for Company ATAL S.A. in period 2018-2020
Range of Average Value of the Ratios
the Most
Type of Ratio Formulas of the Ratios
Frequent 2018 2019 2020
Values
Total Assets Turnover
Total Revenue/Total Assets Max 0,57 0,31 0,42
Ratio
Fixed Assets Turnover
Total Revenue/Total Fixed Assets Max 7,34 4,81 6,35
Ratio
Current Assets Turnover
Total Revenue/Current Assets Max 0,62 0,33 0,45
Ratio

Accounts Receivables Revenue from Sales/Accounts

Max 63,41 28,83 31,47
Turnover Ratio in Times Receivables

Accounts Receivables Total Accounts Receivables/Revenue

Min 5,76 12,66 11,60
Turnover Ratio in Days from Sales* 365

Inventory Turnover Ratio

Revenue from Sales/Inventory Max 0,71 0,35 0,50
in Times
Inventory Turnover Ratio
Inventory/Revenue from Sales* 365 Min 514,61 1054,41 727,80
in Days

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 Current Liquidity Ratios
Name of the Company 2018 2019 2020 AVERAGE
Budimex S.A 1,14 1,09 0,0012 0,74
PORR S.A. 1,18 1,30 1,27 1,25
Dom Development S.A. 2,39 2,05 1,91 2,12
Echo Investment S.A. 1,31 1,00 0,87 1,06
Kajima Poland Sp. z o.o. 1,95 3,68 2,62 2,75
Murapol S.A. 1,24 1,04 1,18 1,15
Panattoni Development Europe Sp. z o.o. 1,67 2,1 1,34 1,70
Robyg Construction Sp. z o.o. 2,12 2,54 2,11 2,26
Archicom SA 2,07 1,93 2,68 2,23
HB Reavis Holding S.A. 1,40 1,17 1,26 1,28
Develia S.A. 1,76 2,21 2,11 2,03
Marvipol Development S.A. 2,62 2,04 2,20 2,29
Atlas Ward Polska Sp. z o.o. 1,62 1,97 2,06 1,88
Aldesa Construcciones Polska Sp. z o.o. 1,04 0,84 0,96 0,95
Ronson Development SE 2,71 2,00 2,31 2,34
Bouygues Immobilier Polska Sp. z o.o. 4,53 4,22 6,47 5,07
White Stone Development Sp. z o.o. 0,48 0,85 2,85 1,39
Zakład budowlano-montażowy Grimbud Sp. z o.o. 1,36 1,53 2,16 1,68
J.W. Construction Holding S.A. 1,42 1,48 1,27 1,39
AVERAGE 1,87
STANDARD DEVIATION 0,93
STANDARD ERROR 0,10

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 Current Liquidity Ratio
Histogram – Frequency Distribution
16%

14%

12%

10%

8%

6%

4%

2%

0%
0.96 1.18 1.39 1.61 1.83 2.04 2.26 2.48 2.69 2.91 3.13 3.34 3.56 3.77 3.99 4.21 4.42 4.64 4.86 5.07
-2%

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 Return on Equity Ratios
SPÓŁKA 2018 2019 2020 ŚREDNIA
Budimex S.A 0,41 0,27 0,40 0,36
PORR S.A. -0,03 -0,33 0,07 -0,10
Dom Development S.A. 0,22 0,24 0,26 0,24
Echo Investment S.A. 0,20 0,02 0,04 0,09
Kajima Poland Sp. z o.o. 0,52 0,46 0,26 0,41
Murapol S.A. 0,20 -0,28 0,29 0,07
Panattoni Development Europe Sp. z o.o. 1,00 0,42 0,37 0,60
Robyg Construction Sp. z o.o. 0,26 0,26 0,22 0,25
Archicom SA 0,11 0,18 0,22 0,17
HB Reavis Holding S.A. 0,07 0,08 -0,10 0,02
Develia S.A. 0,11 0,08 -0,11 0,03
Marvipol Development S.A. 0,11 0,14 0,14 0,13
Atlas Ward Polska Sp. z o.o. 0,22 0,38 0,32 0,31
Aldesa Construcciones Polska Sp. z o.o. - - - -
Ronson Development SE 0,04 0,05 0,11 0,07
Bouygues Immobilier Polska Sp. z o.o. 0,37 -0,07 0,07 0,13
White Stone Development Sp. z o.o. 0,02 0,03 0,05 0,03

Zakład budowlano-montażowy Grimbud Sp. z o.o. 0,15 0,28 0,37 0,27

J.W. Construction Holding S.A. 0,02 0,09 -0,02 0,03
AVERAGE 0,17
STANDARD DEVIATION 0.17
STANDARD ERROR 0,02

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 Return on Equity Ratio
Histogram – Distribution of Return on Equity Ratio

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
-0.06 -0.02 0.01 0.05 0.09 0.12 0.16 0.20 0.23 0.27 0.30 0.34 0.38 0.41 0.45 0.49 0.52 0.56 0.60

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 Return on Sales Ratios
Name of the Company
2018 2019 2020 AVERAGE
Budimex S.A 0,04 0,03 0,06 0,04
PORR S.A. 0,00 -0,04 0,01 -0,01
Dom Development S.A. 0,14 0,15 0,17 0,15
Echo Investment S.A. 0,43 0,07 0,18 0,22
Kajima Poland Sp. z o.o. 0,05 0,09 0,05 0,06
Murapol S.A. 0,06 -0,06 0,10 0,03
Panattoni Development Europe Sp. z o.o. 0,18 0,13 0,16 0,03
Robyg Construction Sp. z o.o. 0,18 0,18 0,19 0,15
Archicom SA 0,12 0,19 0,20 0,18
HB Reavis Holding S.A. 2,47 4,57 -6,16 0,17
Develia S.A. 0,20 0,14 -0,27 0,29
Marvipol Development S.A. 0,18 0,24 0,19 0,03
Atlas Ward Polska Sp. z o.o. 0,03 0,05 0,05 0,20
Aldesa Construcciones Polska Sp. z o.o. -0,03 -0,13 -0,04 0,04
Ronson Development SE 0,05 0,07 0,10 -0,07
Bouygues Immobilier Polska Sp. z o.o. 0,07 -0,01 0,01 0,08
White Stone Development Sp. z o.o. 0,51 0,65 1,37 0,02
Zakład budowlano-montażowy Grimbud Sp. z o.o. 0,02 0,04 0,09 0,84
J.W. Construction Holding S.A. 0,04 0,10 -0,07 0,05
AVERAGE 0,13
STANDARD DEVIATION 0,19
STANDARD ERROR 0,02

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 Return on Sales Ratio
Histogram – Distribution of the Return on Sales Ratio
45%

40%

35%

30%

25%
Atal S.A.
20%

15%

10%

5%

0%
-0.02 0.02 0.07 0.11 0.16 0.20 0.25 0.30 0.34 0.39 0.43 0.48 0.52 0.57 0.61 0.66 0.71 0.75 0.80 0.84
-5%

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 Total Debt to Assets Ratios
Name of the Company 2018 2019 2020 AVERAGE
Budimex S.A 0,86 0,87 0,84 0,86
PORR S.A. 0,84 0,83 0,83 0,83
Dom Development S.A. 0,59 0,63 0,64 0,62
Echo Investment S.A. 0,48 0,57 0,6 0,55
Kajima Poland Sp. z o.o. 0,73 0,54 0,67 0,65
Murapol S.A. 0,85 0,88 0,78 0,84
Panattoni Development Europe Sp. z o.o. 0,60 0,46 0,44 0,50
Robyg Construction Sp. z o.o. 0,69 0,68 0,64 0,67
Archicom SA 0,72 0,49 0,58 0,60
HB Reavis Holding S.A. 0,46 0,44 0,55 0,48
Develia S.A. 0,58 0,54 0,53 0,55
Marvipol Development S.A. 0,57 0,62 0,58 0,59
Atlas Ward Polska Sp. z o.o. 0,72 0,73 0,75 0,73
Aldesa Construcciones Polska Sp. z o.o. 0,97 1,14 1,03 1,05
Ronson Development SE 0,57 0,63 0,59 0,60
Bouygues Immobilier Polska Sp. z o.o. 0,82 0,92 0,93 0,89
White Stone Development Sp. z o.o. 0,19 0,27 0,27 0,24
Zakład budowlano-montażowy Grimbud Sp. z o.o. 0,60 0,54 0,41 0,52
J.W. Construction Holding S.A. 0,60 0,56 0,63 0,60
AVERAGE 0,65
STANDARD DEVIATION 0,18
STANDARD ERROR 0,02

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 Total Debt to Assets Ratio
Histogram – Distribution of the Total Debt Ratio
25%

20%

15%

10%

5%

0%
0.28 0.32 0.36 0.40 0.44 0.48 0.52 0.56 0.60 0.65 0.69 0.73 0.77 0.81 0.85 0.89 0.93 0.97 1.01 1.05

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 Turnover Ratio
Name of the Company 2018 2019 2020 AVERAGE
Budimex S.A 1,35 1,13 1,12 1,20
PORR S.A. 1,84 1,42 1,44 1,56
Dom Development S.A. 0,65 0,56 0,56 0,59
Echo Investment S.A. 0,16 0,11 0,10 0,12
Kajima Poland Sp. z o.o. 3,12 2,31 1,60 2,34
Murapol S.A. 0,57 0,56 0,69 0,61
Panattoni Development Europe Sp. z o.o. 2,22 1,82 1,33 1,79
Robyg Construction Sp. z o.o. 0,45 0,47 0,43 0,45
Archicom SA 0,36 0,04 0,46 0,29
HB Reavis Holding S.A. 0,03 0,03 0,03 0,03
Develia S.A. 0,15 0,18 0,15 0,16
Marvipol Development S.A. 0,29 0,24 0,35 0,29
Atlas Ward Polska Sp. z o.o. 2,11 2,28 1,60 2,00
Aldesa Construcciones Polska Sp. z o.o. 1,11 1,16 0,96 1,07
Ronson Development SE 0,37 0,25 0,43 0,35
Bouygues Immobilier Polska Sp. z o.o. 1,02 0,85 0,70 0,86
White Stone Development Sp. z o.o. 0,07 0,07 0,11 0,08
Zakład budowlano-montażowy Grimbud Sp. z o.o. 2,70 3,12 2,43 2,75
J.W. Construction Holding S.A. 0,24 0,37 0,10 0,24
AVERAGE 0,88
STANDARD DEVIATION 0,81
STANDARD ERROR 0,09

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 Turnover Ratio
Histogram – Distribution of the Turnover Ratio
25%

20%

15%

10%

5%

0%
0.17 0.30 0.44 0.57 0.71 0.85 0.98 1.12 1.25 1.39 1.53 1.66 1.80 1.94 2.07 2.21 2.34 2.48 2.62 2.75

-5%

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 Table of Weights Allocated to Each Type of Ratio

Type of Ratio Weight

Current Liquidity Ratio (CLR) 0,3

Return on Equity (ROE) 0,25

Profitability on Sales Ratio (PSR) 0,2

Total Debt Ratio (TDR) 0,15

Turnover on Assets Ratio (TAR) 0,1

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 Formulas to Calculate the Probabilities

𝑾 = 𝑷(CLR) ∗ 𝟎,𝟑 + 𝑷(ROE) ∗ 𝟎,𝟐𝟓 + 𝑷(PSR) ∗ 𝟎,𝟐𝟎 + 𝑷(TDR) ∗ 𝟎,𝟏𝟓 + 𝑷(TAR) ∗ 𝟎,𝟏

P(CLR)= P[CLR(Company) > CLR(Branch)]

P(ROE)= P[ROE(Company) > ROE(Branch)]

P(PSR)= P[PSR(Company) > PSR(Branch)]

P(TDR)= P[TDR(Company) < TDR(Branch)]

P(TAR)= P[TAR(Company) > TAR(Branch)]

P- probability

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RELATIVE LEVELS OF THE FINANCIAL CONDITION
80%

70%

60%

50%

40%

30%

20%

10%

0%

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 FINAL CONCLUSION
❑ The research study indicates that our company ATAL has
one of the highest ratings in the construction industry
branch.
❑ In the model assigns ratings are assigns in range 0-1
❑ ATAL company obtained the rating of 0,63
❑ There are only two companies with the higher ratings
than the ATAL company
❑ Kajima has rating of 0,65
❑ Panattoni has rating of 0,67
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 Prof. Zbigniew Krysiak
Warsaw School of Economics

Zbigniew.Krysiak@IMSchuman.com
Phone +48 796 140 400

Instytut Myśli Schumana; www.IMSchuman.com

Jedność Solidarność Pokój 21