Q1.: Using the financial statements of Oil Search Limited (OSH) calculate the Altman Z-score value for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Q1.: Using the financial statements of Oil Search Limited (OSH) calculate the Altman Z-score value for the prior three years. Use year-end share price/market capitalization, if needed. You can get this data from DatAnalysis or from web search. Altman Z-score 2018 2019 2020 Evaluate the bankruptcy risk of OSH over the prior three years. Explain the change in Z-score over the prior three years. Q2.: Would the Altman-type Z-score model (and its variants) be suitable for predicting distress among private firms? Why or why not? Q3.: Why would a company pay to have its public debt rated by a major rating agency (such as Fitch's, Moody's or Standard & Poor's)? Why might an organisation decide not to have its debt rated? ($millions) Operating Revenue Other Revenue 750.74 0.14 12/11 12/12 12/13 697.82 856.35 12/14 12/15 12/16 12/17 12/18 12/19 12/20 1,963.39 Total Revenue 750.88 43.41 741.23 0.24 856.59 9.46 1,972.85 2,170.45 20.31 2,190.76 1,625.22 1,779.51 156.19 87.12 1,781.41 1,866.63 2,124.46 65.03 2,219.68 138.27 1,358.23 111.88 2,189.49 2,357.95 1,470.11 Excluding Interest Operating Expenses -233.85 -376.40 -359.03 -793.56 -1,231.11 -610.82 -563.84 -711.26 -809.75 -1,155.58 EBITDA 517.03 364.84 497.57 1,179.30 959.65 1,170.59 1,302.79 1,478.23 1,548.19 314.53 Depreciation -11.22 -12.11 Amortisation -39.30 -35.52 Depreciation and -50.52 -47.63 -14.97 -308.06 -41.13 0.00 -56.10 -308.06 -558.11 0.00 -558.11 -603.51 -487.91 0.00 -603.51 0.00 -487.91 -462.02 0.00 -462.02 -590.51 -550.25 0.00 -590.51 0.00 -550.25 Amortisation EBIT 466.51 317.21 441.46 871.24 401.55 567.08 814.87 1,016.21 957.68 -235.71 Interest Revenue Interest Expense 6.85 -7.49 5.09 -9.48 4.36 -21.30 4.54 -162.54 9.32 -262.69 14.98 -285.84 22.43 -272.08 27.49 -324.82 34.74 -364.41 17.92 -265.08 Net Interest Expense -0.65 -4.39 -16.93 -158.00 -253.37 -270.87 -249.65 -297.32 -329.66 -247.16 PreTax Profit 465.86 312.82 424.53 713.23 148.17 296.21 565.22 718.89 628.02 -482.87 Tax Expense -233.77 Net Profit after Tax 232.09 -165.45 -194.62 147.37 229.91 -282.58 430.65 -202.08 -53.90 -131.62 -177.93 -235.46 164.60 387.30 483.43 -194.56 433.46 58.36 -424.51 Before Abnormals Abnormals -32.72 21.96 0.00 0.00 0.00 -40.50 0.00 0.00 12.47 8.18 Abnormals Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Abnormals -32.72 21.96 0.00 0.00 0.00 -40.50 0.00 0.00 12.47 8.18 Reported NPAT After 199.37 169.33 229.91 430.65 -53.90 124.09 387.30 483.43 445.93 -416.33 Abnormals Outside Equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Interests Shares Outstanding at 1,325.16 1,334.76 1,343.36 1,522.69 1,522.69 1,522.69 1,523.63 1,523.63 1,524.75 2,077.85 Period End Weighted Average 1,319.33 1,330.27 1,339.18 1,481.50 1,522.69 1,522.69 1,523.27 1,523.63 1,524.33 1,929.35 Number Of Shares EPS Adjusted 17.50 11.04 17.10 28.98 -3.54 10.80 25.35 31.62 28.32 -22.00 (cents/share) EPS After Abnormals 15.04 12.68 17.10 28.98 -3.54 8.14 25.35 31.62 29.13 -21.58 (cents/share) Date Open High Low Close Volume Market Capitalisation ($m) Shares on Issue 03/09/2021 3.830 34,619,821 7,958.17 2,077,850,664 31/08/2021 30/07/2021 3.740 200,155,142 7,771.16 2,077,850,664 3.810 232,745,761 7,916.61 2,077,850,664 30/06/2021 3.810 193,400,058 7,916.61 2,077,850,664 31/05/2021 3.640 124,077,857 7,563.38 2,077,850,664 30/04/2021 3.800 150,184,559 7,895.83 2,077,850,664 31/03/2021 4.100 163,681,021 8,519.19 2,077,850,664 26/02/2021 4.240 141,454,779 8,810.09 2,077,850,664 29/01/2021 3.880 154,860,754 8,062.06 2,077,850,664 31/12/2020 3.710 148,763,570 7,708.83 2,077,850,664 30/11/2020 3.640 269,924,908 7,563.38 2,077,850,664 30/10/2020 2.570 156,204,167 5,340.08 2,077,850,664 30/09/2020 2.640 184,284,341 5,485.53 2,077,850,664 31/08/2020 3.270 180,951,850 6,794.57 2,077,850,664 31/07/2020 2.920 206,299,053 6,067.32 2,077,850,664 30/06/2020 3.170 310,072,624 6,586.79 2,077,850,664 29/05/2020 3.480 293,026,765 7,230.92 2,077,850,664 30/04/2020 3.050 442,721,635 6,218.89 2,038,979,955 31/03/2020 2.319 280,316,774 3,536.04 1,524,746,985 28/02/2020 5.349 159,934,468 8,156.63 1,524,746,985 31/01/2020 7.055 101,328,495 10,756.63 1,524,746,985 31/12/2019 7.064 75,147,417 10,771.42 1,524,746,985 29/11/2019 7.250 69,479,649 11,053.65 1,524,746,985 31/10/2019 6.977 84,715,221 10,637.70 1,524,746,985 30/09/2019 7.133 144,333,068 10,875.41 1,524,746,985 30/08/2019 6.470 120,556,129 9,865.11 1,524,746,985 31/07/2019 6.928 101,698,377 28/06/2019 6.889 81,008,171 10,563.45 10,503.98 1,524,746,985 1,524,746,985 31/05/2019 6.870 83,591,261 10,474.25 1,524,746,985 30/04/2019 7.581 63,326,552 11,550.34 1,523,631,192 29/03/2019 7.649 87,616,072 11,654.25 1,523,631,192 28/02/2019 8.156 67,919,561 12,426.28 1,523,631,192 31/01/2019 7.610 98,295,237 11,594.99 1,523,631,192 31/12/2018 6.977 78,757,665 10,629.92 1,523,631,192 30/11/2018 7.123 81,131,691 10,852.67 1,523,631,192 31/10/2018 7.571 111,695,230 11,535.56 1,523,631,192 28/09/2018 8.799 67,662,645 13,406.13 1,523,631,192 31/08/2018 8.731 95,400,475 13,302.21 1,523,631,192 31/07/2018 8.750 73,932,355 13,331.93 1,523,631,192 29/06/2018 8.672 83,253,275 13,213.23 1,523,631,192 31/05/2018 8.058 89,806,689 12,277.88 1,523,631,192 30/04/2018 7.639 82,387,382 29/03/2018 6.967 99,765,615 28/02/2018 7.357 78,899,961 31/01/2018 7.376 64,320,566 11,639.48 10,615.14 11,208.90 11,238.61 1,523,631,192 1,523,631,192 1,523,631,192 1,523,631,192 Q1.: Using the financial statements of Oil Search Limited (OSH) calculate the Altman Z-score value for the prior three years. Use year-end share price/market capitalization, if needed. You can get this data from DatAnalysis or from web search. Altman Z-score 2018 2019 2020 Evaluate the bankruptcy risk of OSH over the prior three years. Explain the change in Z-score over the prior three years. Q2.: Would the Altman-type Z-score model (and its variants) be suitable for predicting distress among private firms? Why or why not? Q3.: Why would a company pay to have its public debt rated by a major rating agency (such as Fitch's, Moody's or Standard & Poor's)? Why might an organisation decide not to have its debt rated? ($millions) Operating Revenue Other Revenue 750.74 0.14 12/11 12/12 12/13 697.82 856.35 12/14 12/15 12/16 12/17 12/18 12/19 12/20 1,963.39 Total Revenue 750.88 43.41 741.23 0.24 856.59 9.46 1,972.85 2,170.45 20.31 2,190.76 1,625.22 1,779.51 156.19 87.12 1,781.41 1,866.63 2,124.46 65.03 2,219.68 138.27 1,358.23 111.88 2,189.49 2,357.95 1,470.11 Excluding Interest Operating Expenses -233.85 -376.40 -359.03 -793.56 -1,231.11 -610.82 -563.84 -711.26 -809.75 -1,155.58 EBITDA 517.03 364.84 497.57 1,179.30 959.65 1,170.59 1,302.79 1,478.23 1,548.19 314.53 Depreciation -11.22 -12.11 Amortisation -39.30 -35.52 Depreciation and -50.52 -47.63 -14.97 -308.06 -41.13 0.00 -56.10 -308.06 -558.11 0.00 -558.11 -603.51 -487.91 0.00 -603.51 0.00 -487.91 -462.02 0.00 -462.02 -590.51 -550.25 0.00 -590.51 0.00 -550.25 Amortisation EBIT 466.51 317.21 441.46 871.24 401.55 567.08 814.87 1,016.21 957.68 -235.71 Interest Revenue Interest Expense 6.85 -7.49 5.09 -9.48 4.36 -21.30 4.54 -162.54 9.32 -262.69 14.98 -285.84 22.43 -272.08 27.49 -324.82 34.74 -364.41 17.92 -265.08 Net Interest Expense -0.65 -4.39 -16.93 -158.00 -253.37 -270.87 -249.65 -297.32 -329.66 -247.16 PreTax Profit 465.86 312.82 424.53 713.23 148.17 296.21 565.22 718.89 628.02 -482.87 Tax Expense -233.77 Net Profit after Tax 232.09 -165.45 -194.62 147.37 229.91 -282.58 430.65 -202.08 -53.90 -131.62 -177.93 -235.46 164.60 387.30 483.43 -194.56 433.46 58.36 -424.51 Before Abnormals Abnormals -32.72 21.96 0.00 0.00 0.00 -40.50 0.00 0.00 12.47 8.18 Abnormals Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Abnormals -32.72 21.96 0.00 0.00 0.00 -40.50 0.00 0.00 12.47 8.18 Reported NPAT After 199.37 169.33 229.91 430.65 -53.90 124.09 387.30 483.43 445.93 -416.33 Abnormals Outside Equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Interests Shares Outstanding at 1,325.16 1,334.76 1,343.36 1,522.69 1,522.69 1,522.69 1,523.63 1,523.63 1,524.75 2,077.85 Period End Weighted Average 1,319.33 1,330.27 1,339.18 1,481.50 1,522.69 1,522.69 1,523.27 1,523.63 1,524.33 1,929.35 Number Of Shares EPS Adjusted 17.50 11.04 17.10 28.98 -3.54 10.80 25.35 31.62 28.32 -22.00 (cents/share) EPS After Abnormals 15.04 12.68 17.10 28.98 -3.54 8.14 25.35 31.62 29.13 -21.58 (cents/share) Date Open High Low Close Volume Market Capitalisation ($m) Shares on Issue 03/09/2021 3.830 34,619,821 7,958.17 2,077,850,664 31/08/2021 30/07/2021 3.740 200,155,142 7,771.16 2,077,850,664 3.810 232,745,761 7,916.61 2,077,850,664 30/06/2021 3.810 193,400,058 7,916.61 2,077,850,664 31/05/2021 3.640 124,077,857 7,563.38 2,077,850,664 30/04/2021 3.800 150,184,559 7,895.83 2,077,850,664 31/03/2021 4.100 163,681,021 8,519.19 2,077,850,664 26/02/2021 4.240 141,454,779 8,810.09 2,077,850,664 29/01/2021 3.880 154,860,754 8,062.06 2,077,850,664 31/12/2020 3.710 148,763,570 7,708.83 2,077,850,664 30/11/2020 3.640 269,924,908 7,563.38 2,077,850,664 30/10/2020 2.570 156,204,167 5,340.08 2,077,850,664 30/09/2020 2.640 184,284,341 5,485.53 2,077,850,664 31/08/2020 3.270 180,951,850 6,794.57 2,077,850,664 31/07/2020 2.920 206,299,053 6,067.32 2,077,850,664 30/06/2020 3.170 310,072,624 6,586.79 2,077,850,664 29/05/2020 3.480 293,026,765 7,230.92 2,077,850,664 30/04/2020 3.050 442,721,635 6,218.89 2,038,979,955 31/03/2020 2.319 280,316,774 3,536.04 1,524,746,985 28/02/2020 5.349 159,934,468 8,156.63 1,524,746,985 31/01/2020 7.055 101,328,495 10,756.63 1,524,746,985 31/12/2019 7.064 75,147,417 10,771.42 1,524,746,985 29/11/2019 7.250 69,479,649 11,053.65 1,524,746,985 31/10/2019 6.977 84,715,221 10,637.70 1,524,746,985 30/09/2019 7.133 144,333,068 10,875.41 1,524,746,985 30/08/2019 6.470 120,556,129 9,865.11 1,524,746,985 31/07/2019 6.928 101,698,377 28/06/2019 6.889 81,008,171 10,563.45 10,503.98 1,524,746,985 1,524,746,985 31/05/2019 6.870 83,591,261 10,474.25 1,524,746,985 30/04/2019 7.581 63,326,552 11,550.34 1,523,631,192 29/03/2019 7.649 87,616,072 11,654.25 1,523,631,192 28/02/2019 8.156 67,919,561 12,426.28 1,523,631,192 31/01/2019 7.610 98,295,237 11,594.99 1,523,631,192 31/12/2018 6.977 78,757,665 10,629.92 1,523,631,192 30/11/2018 7.123 81,131,691 10,852.67 1,523,631,192 31/10/2018 7.571 111,695,230 11,535.56 1,523,631,192 28/09/2018 8.799 67,662,645 13,406.13 1,523,631,192 31/08/2018 8.731 95,400,475 13,302.21 1,523,631,192 31/07/2018 8.750 73,932,355 13,331.93 1,523,631,192 29/06/2018 8.672 83,253,275 13,213.23 1,523,631,192 31/05/2018 8.058 89,806,689 12,277.88 1,523,631,192 30/04/2018 7.639 82,387,382 29/03/2018 6.967 99,765,615 28/02/2018 7.357 78,899,961 31/01/2018 7.376 64,320,566 11,639.48 10,615.14 11,208.90 11,238.61 1,523,631,192 1,523,631,192 1,523,631,192 1,523,631,192
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
What is the process of closing the space between a particular ability and the desired and necessary skill and achieving a more well-rounded and balanced CVF profile?
-
Joe Evans opened a fishing supply store named Evans Bait & Tackle, Inc. The following transactions occurred during its first month. Enter each transaction into the accounting equation and identify an...
-
Pop Company acquired a 30 percent interest in Son on January 1 for $500,000 cash. Assume the cost of the investment equals the fair value of Son's net assets. Pop assigned the $125,000 excess of fair...
-
Below is Emilys demand curve for pizzas. How do we add income, a third variable, to price and quantity purchased on our graph? Using a graph, explain what would happen if Emily had an increase in...
-
Dukas Co. had these transactions during the current period. June 12 Issued 80,000 shares of $1 par value common stock for cash of $300,000. July 11 Issued 3,000 shares of $100 par value preferred...
-
assess how accurate a sample mean is by calculating boundaries we believe the population mean is in
-
It is February of 2024, you, CPA, were about to meet with your new clients, Nicole and Joe. They have come to discuss their tax situation with you. They predict that Nicole will not have to pay taxes...
-
Tao's first bank statement arrived via email. Reconcile the statement with his personal record book (cheque register) to date. CHEQUING ACCOUNT 0471-678 ACCOUNT ACTIVITIES ATM LOCATIONS USED First...
-
The band in the figure below is stainless steel (coefficient of linear expansion = 17.3 10 6 C 1 ; Young's modulus = 18 10 10 N/m 2 ). It is essentially circular with an initial mean radius of 4.6...
-
Long-term space missions require reclamation of the oxygen in the carbon dioxide exhaled by the crew. In one method of reclamation, 1.00 mol of carbon dioxide produces 1.00 mol of oxygen, with 1.00...
-
On April 1, Year 1, Fossil Energy Company purchased an oil producing well at a cash cost of $10,620,000. It is estimated that the oil well contains 820,000 barrels of oil, of which only 720,000 can...
-
A wheelbarrow 1.10 m long has aload of 850. N concentrated 40.0 cm from the axle. a) Find the mechanical advantage of the wheelbarrow. b)What force does Jim need to apply in order to raise this load?...
-
A 12% P4,500,000 face value bonds was dated and issued on january 1, 2019 at 95. Bonds mature every december 31 of each year at the rate of P500,000 for 2020 and P1,000,000 per year for the...
-
Controls can be identified based on their function. The functions are preventive, detective, and corrective. A. True B. False
Study smarter with the SolutionInn App