I am thinking about Countrywide Financials.
First off, what is equity - is it a good or bad thing? Like Revenue is good, Liabilities are bad...
I did some calculations. This includes inflation and such.
Equities were 4.6M in 2001, 5.5M in 2002, and 8M in 2003.
Revenue is about 6M for 2001 and 2002, and jumps to 13.4M in 2003.
Sounds so far so good? Well look at this:
Their receivables in days are now over 1,400 days.
Account payables is now almost 10,000 days.
The current ratio is less than 1 (more liabilities than assets!)
They have almost 9x debt than equity.
Given these are 2001 values... what would you say now? Stable or not?
It seems to me that in 2003 they made a huge profit. I had to use 2001 values for the stats because it was all I had from Yahoo and CBS.
First off, what is equity - is it a good or bad thing? Like Revenue is good, Liabilities are bad...
I did some calculations. This includes inflation and such.
Equities were 4.6M in 2001, 5.5M in 2002, and 8M in 2003.
Revenue is about 6M for 2001 and 2002, and jumps to 13.4M in 2003.
Sounds so far so good? Well look at this:
Their receivables in days are now over 1,400 days.
Account payables is now almost 10,000 days.
The current ratio is less than 1 (more liabilities than assets!)
They have almost 9x debt than equity.
Given these are 2001 values... what would you say now? Stable or not?
It seems to me that in 2003 they made a huge profit. I had to use 2001 values for the stats because it was all I had from Yahoo and CBS.
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