Monday, 13 August 2012
K - V PHARMACEUTICAL COMPANY
MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
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K - V PHARMACEUTICAL COMPANY
Identification number
US430618919
Country
United States of America
ZIP code and city
63146 - ST. LOUIS
Address
2280, SCHUETZ ROAD +1 314 645 6600 www.kvpharma.com investorrelations@kvpharmaceutical.com
Legal form
Not available
Account
Consolidated
Incorporation date
1971
NACE 2 Sector
2120 - Manufacture of pharmaceutical preparations
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Company name
Listed Status
Active
MORE Credit limit
Not assessable on the base of the available informations
plans 3 types of reports:
Turnover (th e)
31/03/2012
31/03/2011
31/03/2010
17,370
19,216
6,751
Rating s-peek
C
CC
C
57.00%
42.00%
57.00%
100%
100%
100%
-1.53
-2.49
-3.58
0.35
0.60
0.72
Current Ratio
0.61
1.32
0.53
Quick Ratio
0.60
1.32
0.52
Return on investement ROI (%)
-19.26
-41.15
-83.52
Return on equity ROE (%)
-21.28
-71.92
-203.73
0.09
0.05
0.03
-0.80
-0.07
-0.03
1.90
1.41
2.89
-3.60
-5.99
-36.29
Probability of default
Plus
Basic 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.
Confidence Level
TM
Solvency ratios Leverage ratio Total asset/Total liabilities Liquidity ratios
Profitability and economic equilibrium ratios
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
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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
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 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
-1.53
0.43
1.28
2.26
-1.98
Total asset/Total liabilities
0.35
3.31
1.78
1.34
0.76
Current Ratio
0.61
2.83
1.78
1.58
0.78
Quick Ratio
0.60
2.16
1.24
1.20
0.76
Return on investement ROI (%)
-19.26
12.09
5.78
-3.33
-25.88
Return on equity ROE (%)
-21.28
12.46
7.17
-19.68
-102.80
Liquidity ratios
Profitability and economic equilibrium ratios
Asset turnover
0.09
0.78
0.76
0.58
0.71
Interest paid weight
-0.80
0.01
0.21
-0.02
-0.12
Gross Profit/Operating revenue
1.90
0.56
0.41
0.33
0.38
-3.60
66.72
3.55
-3.55
-4.37
Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)
27
54
61
66
60
Days Sales Outstanding (DSO)
88
85
76
60
44
Days Payable Outstanding (DPO)
143
24
34
54
40
Cash Conversion Cycle (DIO + DSO - DPO)
-28
109
99
70
56
-
277
312
96
28
C
A
BBB
B
CC
Numer of analyzed companies (Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 2120with financial data of year 2012.
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
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 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
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Balance Sheet BALANCE SHEET (th e)
31/03/2012
31/03/2011
31/03/2010
Accounting practice
Local GAAP
Local GAAP
Local GAAP
Exchange rate USD - EUR
0.74873
0.70388
0.7419
Total assets
189,727
397,480
266,044
Fixed assets
111,635
152,601
198,012
97,784
106,074
27,821
1,722
4,364
58,165
12,129
42,162
112,026
Intangible fixed assets Tangible fixed assets Other fixed assets Current assets
78,092
244,879
68,032
Stocks
1,273
704
890
Debtors
4,193
23,510
742
72,627
220,666
66,400
37,960
137,116
45,033
-359,913
-265,925
-103,272
449
422
371
-360,362
-266,348
-103,643
Total liabilities
549,641
663,405
369,315
Non current liabilities
420,860
478,285
241,116
Long term debt
314,241
294,432
173,010
Other non-current liabilities
106,619
183,853
68,106
Current liabilities
128,781
185,120
128,199
Loans
22,911
60,111
47,407
6,813
18,090
28,934
99,057
106,919
51,858
189,727
397,480
266,044
NET DEBT (th e)
31/03/2012
31/03/2011
31/03/2010
Short term debts
22,911
60,111
47,407
Long term debt
314,241
294,432
173,010
Other current assets Cash & cash equivalent Shareholders funds Capital Other shareholders funds
Creditors Other current liabilities Total shareh. funds & liab.
Cash & cash equivalent
37,960
137,116
45,033
299,191
217,428
175,384
31/03/2012
31/03/2011
31/03/2010
Net debt
Working capital
-1,348
6,124
-27,302
-50,689
59,759
-60,168
31/03/2012
31/03/2011
31/03/2010
Net Current Assets
Days Sales Of Inventory (DIO)
27
13
Days Sales Outstanding (DSO)
88
447
40
Days Payable Outstanding (DPO)
143
344
1,564
Cash Conversion Cycle (DIO + DSO - DPO)
-28
116
-1,476
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
48
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Income Statement INCOME STATEMENT (th e)
31/03/2012
31/03/2011
31/03/2010
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.74873
0.70388
0.7419
17,370
19,216
6,751
-10
185
-
0
0
0
Exchange rate USD - EUR Sales Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized Operating revenue / turnover
17,370
19,216
6,751
123,016
85,451
222,123
Costs growth (%)
44
-62
-
Service costs
-
-
-
Material costs
-
-
-
Costs of employees
-
-
-
-64,615
-57,507
-135,396
41,030
8,728
79,976
-105,645
-66,235
-215,372
39,757
-108,397
-12,761
-
-
-
-39,757
108,397
12,761
Total operating costs
EBITDA Depreciation EBIT Financial P/L Financial revenue Financial expenses Interest paid P/L before tax Extr. and other P/L Extr. and other revenue Extr. and other expenses P/L before tax + Extr. and other P/L Taxation
29,350
11,051
5,935
-65,888
-174,632
-228,133
-3,220
-11,121
0
-
-
-
-
-
-
-69,108
-185,754
-228,133
7,487
5,490
-17,731
-76,595
-191,244
-210,401
31/03/2012
31/03/2011
31/03/2010
P/L for period
Costs of Good Sold
-15,648
-7,883
33,019
27,099
19,512
138,664
93,334
234,884
31/03/2012
31/03/2011
31/03/2010
-35,565
-182,516
-130,425
-
-
-
Gross Profit Other Operating Expenses
Cash flow Added value
31/03/2012 Number of employees
214
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
31/03/2011
-12,761
31/03/2010
200
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
237
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 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
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Qualitative information Full overview
The company is a fully integrated specialty pharmaceutical firm that develops, acquires, manufactures and markets technologically distinguished branded and generic/non - branded prescription pharmaceutical products. It was incorporated in the year 1971 and has its registered office address in St. Louis, Missouri. The company is a leading specialty pharmaceutical company that develops, manufactures and markets innovative branded, quality generic/non - branded and unique specialty ingredient products, utilizing proprietary drug delivery technologies. In addition to its comprehensive research & development and manufacturing processes, the company has broad marketing and sales capabilities through its three wholly owned subsidiaries, Ther - Rx Corporation, marketing branded products; ETHEX Corporation; marketing generic/non - branded products; and Particle Dynamics, Inc., participating in the value - added specialty ingredient marketplace. The company has a range of dosage from capabilities, including tablets, capsules, creams, liquids and ointments.
History
Not available.
Primary business line
A fully integrated specialty pharmaceutical firm that develops, acquires, manufactures and markets technologically distinguished branded and generic/non - branded prescription pharmaceutical products.
Secondary business line
Not available.
Main activity
Manufacturing; Wholesale.
Secondary activity
Not available.
Main products and services
Tablets, capsules, creams, liquids and ointments.
Size estimate
A leading specialty pharmaceutical company that develops, manufactures and markets innovative branded, quality generic/non - branded and unique specialty ingredient products, utilizing proprietary drug delivery technologies.
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.
Main foreign countries or regions
Not available.
Main production sites
United States of America.
Main distribution sites
Not available.
Main sales representation sites
Not available.
Main customers
Not available.
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
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Auditor/Advisor/Bank name
type
address
BDO USA, LLP
Auditor
-
UMB Bank
Transfer Agent
-
Board name
date of birth
nationality
function
Mr. Mr. Mr. Mr.
05/08/1949 -
-
Independent Director Director Independent Director Director
-
-
Lead Independent Director Independent Director Independent Director
Robert E Baldini Gregory Smith Bentley Mark A Dow David S Hermelin
Mr. Joseph D Lehrer Mr. David Sidransky Miss Ana I Stancic
Sharehoders (the first twenty shareholders ordered by Direct %)) Rating:
ORBIMED ADVISORS LLC via its funds Country ISO code NACE Rev. 2, Core code
US -
Operating Revenue (MIL $) Total Assets (MIL $)
Direct % Total % Address : Not available
9.03
Number of Employees Information date
2012/03
Rating:
BB
US 7.75
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
9081 179896 10100 2012/03
BLACKROCK, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
-
Address : Not available
KINGDON CAPITAL MANAGEMENT, L.L.C. via its funds
Rating:
Country ISO code
Operating Revenue (MIL $)
NACE Rev. 2, Core code Direct % Total % Address : Not available
US 5.46
Total Assets (MIL $) Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
13.7 80 2012/03
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
PARKSIDE FINANCIAL BANK AND TRUST via its funds
Rating:
Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
US 4.08
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US
Operating Revenue (MIL $)
2017.7
2.12
Total Assets (MIL $) Number of Employees Information date
1830.07 9500 2012/03
US 1.85
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Rating:
A
US
Operating Revenue (MIL $)
36.72
Rating:
VANGUARD GROUP, INC. THE via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
Rating:
TSP CAPITAL MANAGEMENT GROUP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
10.49 219.55 32 2012/03
0.29 4 2012/03
Address : Not available
DIMENSIONAL FUND ADVISORS LP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
1.84
Total Assets (MIL $) Number of Employees Information date
2186.66 260 2012/03
Rating:
BROADFIN CAPITAL LLC via its funds Country ISO code NACE Rev. 2, Core code Direct %
US -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
Total % Address : Not available
1.65
Information date
US 1.29
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Country ISO code NACE Rev. 2, Core code
US -
Operating Revenue (MIL $) Total Assets (MIL $)
9594 216827
Direct % Total % Address : Not available
1.26
Number of Employees Information date
29740 2012/03
2012/03
Rating:
D. E. SHAW & CO., L.P. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
0
119.33 24014.19 159 2012/03
Rating:
STATE STREET CORPORATION via its funds
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
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
NORTHERN TRUST CORPORATION via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
US 1.02
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US
Operating Revenue (MIL $)
Rating:
AQR CAPITAL MANAGEMENT LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
3769.64 100223.74 14018 2012/03
1.00
Total Assets (MIL $) Number of Employees Information date
9.9 75 2012/03
BALYASNY ASSET MANAGEMENT, LLC via its funds
Rating:
Country ISO code NACE Rev. 2, Core code Direct % Total %
US 0.95
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US
Operating Revenue (MIL $)
7757.4
Total Assets (MIL $) Number of Employees Information date
41050 2012/03
KENNEDY CAPITAL MANAGEMENT, INC. via its funds
Rating:
BB
Country ISO code NACE Rev. 2, Core code Direct %
US -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
Total % Address : Not available
0.61
24 150 2012/03
Address : Not available
Rating:
FMR LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
0.71
Information date
2012/03
UBS EUCALYPTUS MANAGEMENT LLC via its funds
Rating:
Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 0.59
0 16.88 0
0 2012/03
BANK OF NEW YORK MELLON CORPORATION via its funds
Rating:
Country ISO code NACE Rev. 2, Core code
US -
Operating Revenue (MIL $) Total Assets (MIL $)
14730 325266
Direct % Total % Address : Not available
0.54
Number of Employees Information date
48700 2012/03
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
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
GEODE CAPITAL MANAGEMENT, LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
US 0.46
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
AMERICAN CAPITAL MANAGEMENT INC via its funds
Rating:
Country ISO code
Operating Revenue (MIL $)
NACE Rev. 2, Core code Direct % Total % Address : Not available
US 0.45
Total Assets (MIL $) Number of Employees Information date
US 0.45
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
0.37 4 2012/03
Rating:
PARTNER FUND MANAGEMENT, L.P. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
0.18 2 2012/03
0 2012/03
Address : Not available
Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:
DRUGTECH CORP Country ISO code NACE Rev. 2, Core code Direct % Total %
US MO
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
-
Information date
Total %
US MO
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
-
Information date
Total %
7.7 39 2012/03
Rating:
THER - RX CORPORATION Country ISO code NACE Rev. 2, Core code Direct %
2012/04
Rating:
ETHEX CORPORATION Country ISO code NACE Rev. 2, Core code Direct %
-
US MO
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
-
Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
7.9 40 2012/04
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 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.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 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.
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The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 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
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 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
K - V PHARMACEUTICAL COMPANY
Monday, 13 August 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