Examples of Total Assets in a sentence
We expect the relationship between the distance to default and the spreads of CODELCO’s bonds to be positive, since increasing the risk of deafult should increase the spread of the bonds.With respect to liquidity risk, the variables are Cash over Total Assets and Maturity.
Any determination of Total Assets shall be made by reference to the last day of the Test Period most recently ended for which financial statements of the Borrower have been delivered pursuant to Section 6.01(1) or (2), as applicable, on or prior to the relevant date of determination.
But the whole financial litterature reports on the Altman Z-score (1968) when it comes about credit scoring models; Altman integrated into a function 5 ratios expressing liquidity, solvency and profitability selected by the intermediary of the Multiliniar Discriminant Analysis: Working Capital/Total Assets, Total Profit/ Total Assets, Equity/Total Debts, Turnover/ Total Assets.
Statistical tests have outlined that default point may be conceived as: Total Assets < DTS + 0.5 DT where DTS – short term debts; DTL – long term debts.
The earnings before taxes (EBT) indicator is highly correlated with the company activity indicators (AR turnover, AP turnover, Total Assets turnover).