HOW TO ASSESS AND ANALYZE THE HEALTH COMPANY
Each company founded certainly has the goal of the company can make a profit, growing and healthy. But in reality, even if the company can make a profit if the company must be healthy? it is necessary to analyze whether the company is making a profit and that seems to be expanding in a healthy state.
A company can be in one state, in which (1) the company in a state likwid and solvable; (2) likwid but insolvable; (3) illikwid but solvable and (4) illikwid and insolvable. If each state described above that the company likwid and solvable is a state company that is not experiencing financial difficulties and the company in a healthy state, while the state likwid but insolvable is a state in which the company is not experiencing financial difficulties, but in an unhealthy state. To state company illikwid but solvable state where the company is in financial difficulties but still in good health, while illikwid and solvable situation is a situation where a company is in financial difficulties and also unhealthy.
4 Among the most excellent state is the first state is a state that likwid and solvable (healthy), the most unfavorable is the fourth state to which state illkwid and insolvable (unhealthy or bankrupt), between the numbers 2 and 3 (condition-prone ) although less good but where the circumstances are still better. Among the numbers 2 and 3, which is still better state is the state number 2 is the state of the likwid but insolvable, as if at the time of short-term financial obligations are able to pay all but the long-term financial difficulties, they can improve their financial structure by increasing its own capital or a loan because it is still believed by third parties, but if circumstances to 3 that state illikwid but solvable, in the short-term difficulties in meeting its financial obligations are, but no long-term financial problems. If short-term financial obligations are already struggling to meet the company will lose the trust of fihakinternal and external companies especially banks, so that if need additional capital of the loan will be difficult to be fulfilled, and to impact the company's internal parties will lower morale.
Analysis techniques to determine the company is in a state in which, there is a technique developed by Altman that can be used to assess the health of a company is the Z-Score. The use of Z-Score formula that depends on the company go public whether or not to go public because of the formula used is different.
For companies go public: Z -Score = 1.2 + 1.4 X1 X2 X3 + 0.6 + 3.3 + 1.0 X4 X5
where Is:
X1 = (Current Assets - Current Debt): Total Assets
X2 = Retained Earnings: Total assets
X3 = Earnings Before Interest and Taxes: Total assets
X4 = Market Value of Equity Capital: Book Value of Debt
X5 = Sales: Total Assets
From formula concluded that the company is healthy when the Z value is greater than 2.99, while prone to say when the results of Z between 1.81 to 2.99 and is said to be healthy or go bankrupt if the value of Z is smaller than 1.81.
For a company that does not go public and go public: Z = 0.717 0.847 X1 + X2 + X3 + 3.107 + 0.998 0.42 X4 X5.
From formula concluded that the company is healthy when the Z value is greater than 2.90, while prone to say when the results of Z between 1.20 to 2.90 and is said to be healthy or go bankrupt if the value of Z is smaller than 1.20.
A company can be in one state, in which (1) the company in a state likwid and solvable; (2) likwid but insolvable; (3) illikwid but solvable and (4) illikwid and insolvable. If each state described above that the company likwid and solvable is a state company that is not experiencing financial difficulties and the company in a healthy state, while the state likwid but insolvable is a state in which the company is not experiencing financial difficulties, but in an unhealthy state. To state company illikwid but solvable state where the company is in financial difficulties but still in good health, while illikwid and solvable situation is a situation where a company is in financial difficulties and also unhealthy.
4 Among the most excellent state is the first state is a state that likwid and solvable (healthy), the most unfavorable is the fourth state to which state illkwid and insolvable (unhealthy or bankrupt), between the numbers 2 and 3 (condition-prone ) although less good but where the circumstances are still better. Among the numbers 2 and 3, which is still better state is the state number 2 is the state of the likwid but insolvable, as if at the time of short-term financial obligations are able to pay all but the long-term financial difficulties, they can improve their financial structure by increasing its own capital or a loan because it is still believed by third parties, but if circumstances to 3 that state illikwid but solvable, in the short-term difficulties in meeting its financial obligations are, but no long-term financial problems. If short-term financial obligations are already struggling to meet the company will lose the trust of fihakinternal and external companies especially banks, so that if need additional capital of the loan will be difficult to be fulfilled, and to impact the company's internal parties will lower morale.
Analysis techniques to determine the company is in a state in which, there is a technique developed by Altman that can be used to assess the health of a company is the Z-Score. The use of Z-Score formula that depends on the company go public whether or not to go public because of the formula used is different.
For companies go public: Z -Score = 1.2 + 1.4 X1 X2 X3 + 0.6 + 3.3 + 1.0 X4 X5
where Is:
X1 = (Current Assets - Current Debt): Total Assets
X2 = Retained Earnings: Total assets
X3 = Earnings Before Interest and Taxes: Total assets
X4 = Market Value of Equity Capital: Book Value of Debt
X5 = Sales: Total Assets
From formula concluded that the company is healthy when the Z value is greater than 2.99, while prone to say when the results of Z between 1.81 to 2.99 and is said to be healthy or go bankrupt if the value of Z is smaller than 1.81.
For a company that does not go public and go public: Z = 0.717 0.847 X1 + X2 + X3 + 3.107 + 0.998 0.42 X4 X5.
From formula concluded that the company is healthy when the Z value is greater than 2.90, while prone to say when the results of Z between 1.20 to 2.90 and is said to be healthy or go bankrupt if the value of Z is smaller than 1.20.
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