What are the recommendations for the WACC and all the ratios and Economic Value added as per
Question:
What are the recommendations for the WACC and all the ratios and Economic Value added as per the above calculations.
Year | 2018 | 2019 | 2020 |
EV in % | 93.43 | 73.82 | 98.09 |
RE in % | 3.63 | 13.31 | 23.39 |
DV in % | 6.57 | 26.18 | 1.91 |
RD in % | 2.97 | 3.95 | 3.74 |
(1- Effective Rate) in % | 100 | 100 | 100 |
WACC in % | 3.59 | 10.86 | 23.01 |
2018 (in thousands)
Total equity=$1,185,418 Total debt=$1,419,736 Total assets=$2,740,536
Interest expenses=$17,983 EBIT=$1,398,726
Debt to Equity Ratio=1,185,418/1,419,736=83.5%
Equity Ratio=1,185,418/2,740,536=43.25%
Debt Ratio=1,419,736/2,740,536=51.8%
Interest coverage ratio=1,398,726/17,983=77.78
2019 (in thousands)
Total equity=-$692,610 Total debt=$2,392,147 Total assets=$2,094,577
Interest expenses=$53,224 EBIT=$1,621,385
Debt to Equity Ratio=-692,610/2,392,147=-28.95%
Equity Ratio=-692,610/2,094,577=-33.07%
Debt Ratio=2,392,147/2,094,577=114.2%
Interest coverage ratio=1,621,385/53,224=30.46
2020 (in thousands)
Total equity=$4,883,103 Total debt=$3,052,034 Total assets=$8,374,234
Interest expenses=$65,290 EBIT=$811,912
Debt to Equity Ratio=4,883,103/3,052,034=159.9%
Equity Ratio=4,883,103/8,374,234=58.31%
Debt Ratio=3,052,034/8,374,234=36.45%
Interest coverage ratio=811,912/65,290=12.44
NIO | 2018 (See A-G ) | 2019 (See A-H) | 2020 (See A-G) |
ROIC (%) | -84.06 | -191.42 | -11.12 |
-WACC (%) | 3.59 | 10.86 | 23.01 |
=EVA (%) | -87.65 | -202.28 | -34.13 |
What are the recommendations for the WACC and all the ratios and Economic Value added as per the above calculations.
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty