Question
Bankruptcy Risk and Z-Score Analysis - Q2 Following are selected ratios for Tesla for two recent fiscal years. Note: Complete the entire question in Excel
Bankruptcy Risk and Z-Score Analysis - Q2
Following are selected ratios for Tesla for two recent fiscal years.
Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.
| Ratio | 2018 | 2017 |
|---|---|---|
| Current ratio | 1.135 | 0.831 |
| Working capital to total assets | 0.842 | 0.7430 |
| Retained earnings to total assets | (0.177) | (0.1788) |
| EBIT to total assets | (0.002) | (0.0549) |
| EBITDA to total assets | 0.061 | 0.0527 |
| Market value of equity to total liabilities | 3.690 | 3.0830 |
| Sales to total assets | 1.516 | 1.1950 |
Compute and interpret Altman Z-scores for the company for both years.
| Year | Z-score | |
|---|---|---|
| 2017 | Answer | |
| 2018 | Answer |
Is the company's bankruptcy risk increasing or decreasing over this period? Answer Choices: Increasing / Decreasing
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
