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