Tuesday, 14 February 2012
ENERGY CONVERSION DEVICES INC
MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Company name
ENERGY CONVERSION DEVICES INC
Identification number If you want to know more, ASKMORE modeFinance’s credit report.
TM
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United States of America
ZIP code and city
48309 - ROCHESTER HILLS
Address
2956, Waterview Drive +1 248 293 0440 www.energyconversiondevices.com
Legal form Account
Consolidated
Incorporation date
1960
NACE 2 Sector
2611 - Manufacture of electronic components
TM
ASKMORE is the modeFinance product which gives the chance to evaluate the credit risk for every company from all around the world.
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Country
Listed Status
Active
MORE Credit limit
Not eligible for credit on the base of the available informations
plans 3 types of reports:
Turnover (th e) Rating s-peek
TM
ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk.
30/06/2010
30/06/2009
160,898
207,331
223,782
CC
B
BBB
42.00%
3.80%
0.40%
100%
100%
100%
14.23
1.29
0.46
1.07
1.77
3.18
Current Ratio
3.79
4.58
7.54
Quick Ratio
2.82
3.78
6.30
Probability of default
Plus
Basic
30/06/2011
Confidence Level
TM
Solvency ratios Leverage ratio Total asset/Total liabilties Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%) Return on equity ROE (%)
-72.21
-62.21
2.30
-1,199.97
-151.48
1.06
0.60
0.37
0.29
-0.09
-0.07
0.62
0.17
0.16
0.42
-11.21
-15.02
1.34
Asset turnover Interest paid weight Gross Profit/Operating revenue Interest Coverage ratios EBIT interest coverage ratio
Analysis and trend of financial strength
modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM
key askMORETM is a registered mark of modeFinanceTM
MORE Credit Rating
D not available
non return
C
CC
extremly pathological pathological
CCC
B
BB
BBB
A
AA
AAA
high danger
weak
sufficient
adequate
good
very strong
extremely strong
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Sector Analysis Company
Healthy
Balanced
Vulnerable
Risky
Solvency ratios Leverage ratio
14.23
0.49
1.58
3.04
-1.91
Total asset/Total liabilties
1.07
3.03
1.62
1.23
0.89
Current Ratio
3.79
2.62
1.70
1.26
0.78
Quick Ratio
2.82
2.06
1.26
0.91
0.45
Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
-72.21
8.93
4.19
0.31
-22.12
-1,199.97
10.15
6.10
-5.06
-92.50
Asset turnover
0.60
1.02
1.15
1.10
2.47
Interest paid weight
-0.09
0.01
0.12
0.08
-0.07
Gross Profit/Operating revenue
0.17
0.34
0.22
0.15
0.02
-11.21
87.68
5.51
0.10
-8.02
Days Sales Of Inventory (DIO)
108
45
44
43
42
Days Sales Outstanding (DSO)
61
67
68
58
32
Days Payable Outstanding (DPO)
0
30
39
48
50
169
73
71
64
37
-
114
196
59
7
CC
A
BBB
B
CC
Return on equity ROE (%)
Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days)
Cash Conversion Cycle (DIO + DSO - DPO) Numer of analyzed companies (Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 2611 with financial data of year 2011.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Sector Analysis - Graphs
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
Balance Sheet BALANCE SHEET (th e)
30/06/2011
30/06/2010
30/06/2009
Accounting practice
Local GAAP
Local GAAP
Local GAAP
Exchange rate USD - EUR
0.6919
0.81493
0.70751
Total assets
268,787
563,888
761,354
Fixed assets
83,795
275,662
442,897
-
0
0
63,153
245,340
434,647
Intangible fixed assets Tangible fixed assets
20,642
30,323
8,250
184,992
288,226
318,456
Stocks
47,394
50,114
52,544
Debtors
27,090
58,692
49,089
110,508
179,420
216,823
90,428
157,224
213,359
17,648
245,895
521,685
369
396
324
17,279
245,499
521,361
Total liabilities
251,139
317,993
239,669
Non current liabilities
202,362
255,007
197,458
Long term debt
173,835
215,101
190,594
28,527
39,906
6,864
48,777
62,986
42,211
Loans
0
0
0
Creditors
0
0
0
48,777
62,986
42,211
268,787
563,888
761,354
30/06/2011
30/06/2010
30/06/2009
Other fixed assets Current assets
Other current assets Cash & cash equivalent Shareholders funds Capital Other shareholders funds
Other non-current liabilities Current liabilities
Other current liabilities Total shareh. funds & liab. NET DEBT (th e) Short term debts
0
0
0
173,835
215,101
190,594
Cash & cash equivalent
90,428
157,224
213,359
Net debt
83,408
57,877
-22,764
30/06/2011
30/06/2010
30/06/2009
Long term debt
Working capital
-
-
-
136,215
225,240
276,245
30/06/2011
30/06/2010
30/06/2009
Net Current Assets
Days Sales Of Inventory (DIO)
108
88
86
Days Sales Outstanding (DSO)
61
103
80
0
0
0
169
191
166
Days Payable Outstanding (DPO) Cash Conversion Cycle (DIO + DSO - DPO)
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
Income Statement INCOME STATEMENT (th e)
30/06/2011
30/06/2010
30/06/2009
Accounting practice
Local GAAP
Local GAAP
Local GAAP
Exchange rate USD - EUR
0.6919
0.81493
0.70751
Sales
160,898
207,331
223,782
-22.4
-7.4
-
0
0
0
Operating revenue / turnover
160,898
207,331
223,782
Total operating costs
357,909
558,409
209,210
Costs growth (%)
-36
167
-
Service costs
-
-
-
Material costs
-
-
-
Costs of employees
-
-
-
EBITDA
-26,198
-31,677
38,348
Depreciation
170,813
319,400
23,776
-197,011
-351,078
14,572
-14,663
-23,109
-7,982
Financial revenue
1,801
2,151
3,697
Financial expenses
16,464
25,260
11,680
Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized
EBIT Financial P/L
17,577
23,369
10,889
-211,674
-374,187
6,590
176
-119
0
-
-
-
Interest paid P/L before tax Extr. and other P/L Extr. and other revenue
-
-
-
-211,498
-374,305
6,590
Extr. and other expenses P/L before tax + Extr. and other P/L Taxation P/L for period
273
-1,832
1,044
-211,771
-372,474
5,546
30/06/2011
30/06/2010
30/06/2009
133,680
173,815
130,379
27,218
33,516
93,403
224,229
384,594
78,831
30/06/2011
30/06/2010
30/06/2009
-40,958
-53,073
29,322
-
-
-
Costs of Good Sold Gross Profit Other Operating Expenses
Cash flow Added value
30/06/2011 Number of employees
1,300
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
30/06/2010 1,500
30/06/2009 1,800
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Evolutions and trends
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Qualitative information Full overview
Energy Conversion Devices, Inc. (ECD) is a publicly quoted company that produces and commercializes materials, products, and production processes for the alternative energy generation, energy storage, and information technology markets. The company was founded in 1960 by Stanford Ovshinsky and has its registered head office in Rochester Hills, Michigan in the United States. Energy Conversion Devices is a world leader in the synthesis of new materials and the development of advanced production technology and innovative alternative energy products and solutions. The company’s portfolio of alternative energy solutions and proprietary information processing technologies features advances in solar electric power generation, NiMH (nickel - metal hydride battery) batteries and fuel cell, solid hydride storage and phase - change memory technologies. ECD designs and builds manufacturing machinery that incorporates its proprietary production processes, maintains ongoing research and development programs to continually improve its products, and develops new applications for its technologies. Energy Conversion Devices further has two strong business segments: United Solar Ovonic and Ovonic Materials. United Solar Ovonic manufactures and sells solar modules based on proprietary thin - film triple junction amorphous silicon technology. Its solar panels are flexible, lightweight and rugged as well as generates up to 20 percent more electricity than conventional crystalline products. Ovonic Materials segment includes royalty - bearing consumer battery business, the manufacture of nickel hydroxide materials used in NiMH batteries, and the R&D (research and development) programs with near - term commercial opportunities of ECD. In addition to the two segments, Energy Conversion Devices has two joint ventures: Ovonyx, Inc. and Cobasys LLC. Ovonyx, Inc. was formed to commercialize ECD’s proprietary phase - change semiconductor memory technology - OUM (Ovonic Unified Memory) or PRAM (parameter random access memory). Cobasys LLC was formed to commercialize ECD’s proprietary NiMH technology to provide advanced energy storage systems and solutions for transportation and stationary markets. Energy Conversion Devices operates in the United States, Germany, China, Japan and Italy, among others.
History
Founded by Stanford Ovshinsky.
Primary business line
Engaged in the production and distribution of materials, products, and production processes for the alternative energy generation, energy storage, and information technology markets.
Secondary business line
Not available.
Main activity
Manufacturing.
Secondary activity
Not available.
Main products and services
Not available.
Size estimate
A world leader in the synthesis of new materials and the development of advanced production technology and innovative alternative energy products and solutions.
Strategy, organization and policy
Not available.
Strategic alliances
Not available.
Membership of a network
Not available.
Main brand names
Not available.
Main domestic country
United States Of America.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Main foreign countries or regions
Germany; China; Japan; Italy.
Main production sites
United States of America.
Main distribution sites
Not available.
Main sales representation sites
Not available.
Main customers
Alternative energy generation, energy storage, and information technology markets; Transportation and stationary markets.
Auditor/Advisor/Bank name
type
address
GRANT THORNTON LLP Computershare Investor Services
Auditor Transfer Agent
-
Board name
date of birth
nationality
function
Mr Stephen Rabinowitz Mr Jay Brian Knoll Mr Joseph A Avila
17/05/1963 -
-
Independent Chairman of the Board Executive Vice President, Chief Restructuring Officer, Director Independent Director
Mr Alan E Barton Mr Robert I Frey Mr Julian Hawkins Mr William J Ketelhut Mr George A Schreiber
15/10/1952 -
United States -
Independent Director Independent Director President, Chief Executive Officer, Director Independent Director Independent Director
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Sharehoders (the first twenty shareholders ordered by Direct %)) Rating:
VANGUARD GROUP, INC. THE via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
US 4.58
Total % Address: Not available
Total % Address: Not available
BBB
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
8,612 178,459 9,127
2.36
Information date
2011/09
US 1.86
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Rating:
-
US -
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
17 540
Rating:
GUGGENHEIM CAPITAL, LLC via its funds Country ISO code NACE Rev. 2, Core code Direct %
1,830 9,500 2011/09
Rating: US -
DIMENSIONAL FUND ADVISORS LP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
2,018
Total Assets (MIL $) Number of Employees Information date
BLACKROCK, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct %
-
Operating revenue (MIL $)
1.75
A 37 2,187 260 2011/09
Information date
2011/12
WINTON CAPITAL MANAGEMENT LIMITED via its funds
Rating:
AA
Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
GB 1.51
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
441 255 195 2011/09
US -
Operating revenue (MIL $) Total Assets (MIL $)
Rating:
WATER STREET CAPITAL, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
1.35
Number of Employees Information date
US 1.33
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
-
Address: Not available
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
2 18 2011/09
Rating:
VALINOR MANAGEMENT, LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
-
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2011/09
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
ROYAL BANK OF CANADA RBC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
CA -
24,174 754,948 68,480
1.26
Information date
2011/09
CH 1.15
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US -
Operating revenue (MIL $) Total Assets (MIL $)
119 24,014
0.73
Number of Employees Information date
159 2011/09
US 0.56
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Rating:
-
US
Operating revenue (MIL $)
10
Rating:
CREDIT SUISSE GROUP AG via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
Direct % Total % Address: Not available
-
Rating:
GOLDMAN SACHS GROUP, INC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
32,087 1,098,345 50,100 2011/09
Rating:
D. E. SHAW & CO., L.P. via its funds Country ISO code NACE Rev. 2, Core code
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
39,161 911,332 35,700 2011/09
Address: Not available
AQR CAPITAL MANAGEMENT LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
0.53
Total Assets (MIL $) Number of Employees Information date
Rating:
BARCLAYS PLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
GB -
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
0.51
Information date
US 0.43
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
48,607 2,332,039 147,500 2011/09
Rating:
SUSQUEHANNA INTL GROUP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
75 2011/09
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
-
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2011/09
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
GOVERNMENT OF NORWAY via its funds
-
Country ISO code NACE Rev. 2, Core code Direct %
NO -
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
Total % Address: Not available
0.39
Information date
2010/12
Rating:
BB
BM 0.35
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
3,528 20,444 2011/09
INVESCO LTD. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
-
BANK OF NEW YORK MELLON CORPORATION via its funds
Rating:
Country ISO code NACE Rev. 2, Core code
Operating revenue (MIL $) Total Assets (MIL $)
14,730 325,266
0.33
Number of Employees Information date
48,700 2011/09
US 0.29
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Direct % Total % Address: Not available
US -
Rating:
GEODE CAPITAL MANAGEMENT, LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
-
0 2 2011/09
Address: Not available
WELLINGTON MANAGEMENT CO L.L.P via its funds
Rating:
Country ISO code
Operating revenue (MIL $)
NACE Rev. 2, Core code Direct % Total % Address: Not available
US 0.28
Total Assets (MIL $) Number of Employees Information date
Total % Address: Not available
US -
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
0.27
Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
2011/09
Rating:
RENAISSANCE TECHNOLOGIES LLC via its funds Country ISO code NACE Rev. 2, Core code Direct %
-
1,245 948 42 2011/09
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:
-
Country ISO code
US
Operating revenue (MIL $)
14
NACE Rev. 2, Core code Direct % Total %
MO -
Total Assets (MIL $) Number of Employees Information date
Country ISO code
US
Operating revenue (MIL $)
NACE Rev. 2, Core code Direct % Total %
MO -
Total Assets (MIL $) Number of Employees Information date
Country ISO code
US
Operating revenue (MIL $)
NACE Rev. 2, Core code Direct % Total %
MO -
Total Assets (MIL $) Number of Employees Information date Rating:
-
Country ISO code
US
Operating revenue (MIL $)
15
NACE Rev. 2, Core code Direct % Total %
MO -
Total Assets (MIL $) Number of Employees Information date
Country ISO code
US
Operating revenue (MIL $)
NACE Rev. 2, Core code Direct % Total %
MO -
Total Assets (MIL $) Number of Employees Information date
OVONIC BATTERY COMPANY, INC.
138 2011/10
Rating:
OVONIC FUEL CELL COMPANY LLC
15 2011/10
Rating:
OVONIC HYDROGEN SYSTEMS LLC
SOLAR INTEGRATED TECHNOLOGIES, INC.
-
UNITED SOLAR OVONIC LLC
140 2011/08 -
Rating:
89 -
US -
Operating revenue (MIL $) Total Assets (MIL $)
Direct % Total %
MO -
Number of Employees Information date
RU -
Operating revenue (MIL $) Total Assets (MIL $)
Country ISO code NACE Rev. 2, Core code Direct % Total %
Direct % Total %
-
Number of Employees Information date
RU -
D
Operating revenue (MIL $) Total Assets (MIL $)
50.00 -
Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
0 0 2 2011/02
Rating:
SOVLAKS - BATAREYA Country ISO code NACE Rev. 2, Core code
1,100 2011/07
Rating:
50.00 -
0 89 70 2010/09
Country ISO code NACE Rev. 2, Core code
SOVLAKS
1 12 2011/07
Rating:
UNITED SOLAR OVONIC CORPORATION
1
0 0 22 2011/02
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
ASKMORE rating guide General vision
A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating scale Rating class
Rating macro class
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
AAA
AA
Assessment
economic and financial flow and fund equilibrium. Healthy
The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in
A
circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.
BBB Balanced
A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.
BB
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
B
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.
CC
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky
C
The company shows considerable pathological situations. commitments is very low.
D
The company has not any longer the capacity to meet its financial commitments.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Fundamental Credit Rating Ratios Analysis area
Ratio
Assessment This measures the level of total liabilities of the company in comparison
Leverage ratio
with equity.
Solvency ratios
Financial ratios
Assets to debt
This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.
Fixed Assets coverage ratio
This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.
Current ratio
This measures whether a company has sufficient short-term assets to cover its short-term liabilities.
Liquidity ratios This compares current liabilities only to those assets that can be readily
Quick ratio
turned into cash.
Return on Investement(ROI)
This measures the profitability of company investments without regard to the way the investment is financed.
Return on Equity(ROE)
This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.
Profit margin
This indicates the profitability of sales.
Interest Paid coverage
This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.
Profitability and economic ratios
Interest coverage ratio
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit
MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
P Available Information P Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
ENERGY CONVERSION DEVICES INC
Tuesday, 14 February 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Notes and disclaimer NOTES
modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.
DISCLAIMER
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Contacts
Info web
modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com
Phone
+39 040 3755337
Company Products Where
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741