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Please explain why my teacher interpret each quantity financial index like this (teacher's explanation was shown in the red letter in above picture) I don't
Please explain why my teacher interpret each quantity financial index like this (teacher's explanation was shown in the red letter in above picture)
I don't understand why teacher use -1.78 as cut off in m-score
, and why teacher interpret another index like these please. help me cleary expain.
(and table below is another information of the data above, it's only the information that may help you to answer this question easier)
Thank you so much for your helping!
| ABD Co.: Financial information | 2018 | 2019 | 2020 | ||||
| Current ratio(times) | 1.44 | 1.47 | 1.5 | ||||
| Quick ratio(times) | 0.62 | 0.79 | 0.58 | ||||
| Cash ratio(times) | 0.06 | 0.04 | 0.04 | ||||
| Cash flow from operating activity | 19,943,652 | 17,675,432 | 17,943,657 | ||||
| Cash flow from investing activity | -14,777,065 | -18,732,456 | -16,234,567 | ||||
| Cash flow from financing activity | -9,422,372 | -8,235,671 | -8,342,009 | ||||
| Fixed assets turnover | 6.77 | 6.24 | 6.09 | ||||
| Total assets turnover | 1.76 | 1.88 | 1.61 | ||||
| Capital expenditure | 7,798,285 | 8,237,301 | 7,832,019 | ||||
| Reinvestment cashflow coverage | 2.56 | 2.15 | 2.29 | ||||
| Cash | (4,255,785) | (9,292,695) | (6,632,919) | ||||
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