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Please guide me the approach to analyze earnings quality, balance sheet quality, and cash flow quality of this company thoroughly especially through M-score, Z-score, and
Please guide me the approach to analyze earnings quality, balance sheet quality, and cash flow quality of this company thoroughly especially through M-score, Z-score, and Coefficient on earnings persistence model based on the given information of ABD And I don't know how to interpret it in whole picture, Thank you in advance. | |||||||
ABD Corporation: Financial information | 2018 | 2019 | 2020 | ||||
M-score | -3.48 | -4.05 | -1.94 | ||||
Z-score | 2.78 | 2.98 | 3.17 | ||||
Cash ratio(times) | 0.06 | 0.04 | 0.04 | ||||
Cash flow from operating activity (Baht) | 19,943,652 | 17,675,432 | 17,943,657 | ||||
Cash flow from investing activity (Baht) | -14,777,065 | -18,732,456 | -16,234,567 | ||||
Cash flow from financing activity (Baht) | -9,422,372 | -8,235,671 | -8,342,009 | ||||
Net income excluding non-recurring items (Baht) | 28,161,315 | 26,263,890 | 27,457,821 | ||||
Cash dividend paid (Baht) | 5,000,000 | 5,000,000 | 5,000,000 | ||||
Capital expenditure (Baht) | 7,798,285 | 8,237,301 | 7,832,019 | ||||
Coefficient on earnings persistence model (cash flow component)* | 0.272 | ||||||
Coefficient on earnings persistence model (accrual component)* | 0.325 | ||||||
* The coefficients are estimated using quarterly data during 2018-2020. |
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