Using the findings, provide a brief summary about the financial status

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.18E
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  1. Using the findings, provide a brief summary about the financial status of each of the companies and provide a recommendation for the investment choice.

BHP Altman Z Score
2018
2019
2020
a
0.19
0.11
0.06
b
0.46
0.42
0.41
0.15
0.17
0.15
d
0.00161
0.00172
0.00141
e
0.000285
0.000308
0.000281
Z-Score
0.80
0.71
0.63
Current Ratio BHP
2016
2017
2018
2019
2020
47,530,780,679.00 33,328,104,947.00 31,285,152,265.00
18,927,073,467.00 17,594,467,417.00 21,599,883,432.00
Assets
23,854,026,393.00
27,373,894,955.00
Liabilities
16,617,290,600.00
14,776,391,055.00
Ratio
1.44
1.85
2.51
1.89
1.45
Return on Capital Employed BHP
2016
2017
2018
2019
2020
Total Assets
160,184,486,937.00
152,113,884,555.00
151,526,180,489.00
143,820,048,481.00
152,678,129,098.00
Total Current Liabilit
18,927,073,467.00
17,594,467,417.00
126,225,581,064.00
16,617,290,600.00
14,776,391,055.00
137,337,493,500.00
21,599,883,432.00
143,567,196,337.00
14,628,332,884.00
Capital Employed
132,599,107,022.00
22,858,882,424.00
131,078,245,666.00
ЕBIT
16,522,360,894.00
24,781,120,775.00
23,129,826,606.00
ROCE
10.19%
12.03%
17.24%
19.63%
17.65%
Transcribed Image Text:BHP Altman Z Score 2018 2019 2020 a 0.19 0.11 0.06 b 0.46 0.42 0.41 0.15 0.17 0.15 d 0.00161 0.00172 0.00141 e 0.000285 0.000308 0.000281 Z-Score 0.80 0.71 0.63 Current Ratio BHP 2016 2017 2018 2019 2020 47,530,780,679.00 33,328,104,947.00 31,285,152,265.00 18,927,073,467.00 17,594,467,417.00 21,599,883,432.00 Assets 23,854,026,393.00 27,373,894,955.00 Liabilities 16,617,290,600.00 14,776,391,055.00 Ratio 1.44 1.85 2.51 1.89 1.45 Return on Capital Employed BHP 2016 2017 2018 2019 2020 Total Assets 160,184,486,937.00 152,113,884,555.00 151,526,180,489.00 143,820,048,481.00 152,678,129,098.00 Total Current Liabilit 18,927,073,467.00 17,594,467,417.00 126,225,581,064.00 16,617,290,600.00 14,776,391,055.00 137,337,493,500.00 21,599,883,432.00 143,567,196,337.00 14,628,332,884.00 Capital Employed 132,599,107,022.00 22,858,882,424.00 131,078,245,666.00 ЕBIT 16,522,360,894.00 24,781,120,775.00 23,129,826,606.00 ROCE 10.19% 12.03% 17.24% 19.63% 17.65%
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