?How does the study of a money company differ from developers?
Detailed review prepared in Yango
❓ Which company is in front of you? Is it a manufacturer of agricultural products with an operational case, microcredit company "RogaVBega" – financial company or coastal construction company – development company?
Operating company: these are the dynamics of revenue and EBITDA, debt / EBITDA, ROE и ROIC
About Revenue everything is clear to you, let it grow for itself with each period.
? EBITDA - the main indicator for an operating company, which reads, what currency flow does the business earn, in other words, how is this company operationally productive?.
By EBITDA, financiers can judge, is the issuer able to return the investments invested in it?. EBITDA should normally be positive.
? Debt / EBITDA ratio up to 2–2.5 best, if more 4, it's worth puzzling. I begin to consider additionally already with 3x.
? ROE (Return on Equity) - the main indicator for business owners. The higher the ROE, the higher the productivity, with which the funds of the owners of shares work in the company.
However, to buy the company's debt, it is specifically important for you
? ROIC - indicator for financiers in company loans. The return on invested capital provides an answer to the question, how well the company uses the funds invested in the business (equity and debt capital) to generate income.
If ROIC = seven percent, and the interest should be given to the company twenty percent, then it can end quickly.
Finance company: banks, Leasing, insurance and factoring companies
Capital and mandatory indicators of the Central Bank, Unsullied Interest Margin, ROE and ROA
? IN Capital you are interested in stability, but better growth and sufficiency indicators, commanded by the Central Bank.
Subordinated bonds are usually lured by an inflated rate, but can be thrown on the altar of capital adequacy.
? If capital security leasing or factoring company is ten percent or more - this is an excellent dynamics.
? Unsullied Interest Margin - the same broth from eggs, difference between average interest rate, received on loans and investments, and average rate, payable on liabilities and capital.
Interest margin may be tight in the current near-zero environment.
? ROE rates vary from company to company, largely depends on, is the bank's business mature or growing. ROE of 10-15% for a mature business is a very good indicator. Anyway, important, to keep ROE ahead of inflation.
? Return on assets, ROA (Return on Assets) - coefficient, which reflects the ability of the bank's assets to generate profit. He shows, how efficiently the bank attracts and allocates the received resources. Positive dynamics is important.
Construction, design or development company:
self-sufficiency, margin after loans and interest and adherence to construction schedule.
? One of the most important indicators of the sustainability of construction (Development) company is self-sufficiency. This indicator should be at the level of 20-30%. If the developer shows the bank or investors less 20% own funds is a bad sign.
? The second important factor is expected margin after payment of interest and repayment of loans. Return on capital at the level 30% - a very good indicator for the sector. Usually for construction projects, this figure fluctuates at the level of 15-20% per annum.
? An extremely important factor for engineering companies - adherence to the construction schedule, which directly affects the profitability of the business. Especially in the context of escrow accounts.
