The company has multiple businesses, volatile operating income from various sources, and an unpredictable effective tax rate due to income from different locales and tax havens. Capital expenditures and working capital are also volatile due to large and frequent acquisitions as well as unspecified assets and liabilities. Expected growth relies on off-balance sheet items, substantial stock buybacks, and an unsustainably high return on capital that is much higher than industry averages.
The company has multiple businesses, volatile operating income from various sources, and an unpredictable effective tax rate due to income from different locales and tax havens. Capital expenditures and working capital are also volatile due to large and frequent acquisitions as well as unspecified assets and liabilities. Expected growth relies on off-balance sheet items, substantial stock buybacks, and an unsustainably high return on capital that is much higher than industry averages.
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The company has multiple businesses, volatile operating income from various sources, and an unpredictable effective tax rate due to income from different locales and tax havens. Capital expenditures and working capital are also volatile due to large and frequent acquisitions as well as unspecified assets and liabilities. Expected growth relies on off-balance sheet items, substantial stock buybacks, and an unsustainably high return on capital that is much higher than industry averages.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as XLS, PDF, TXT or read online from Scribd
Income 2. One-time income and expenses 3. Income from unspecified sources 4. Items in income statement that are volatile Tax Rate 1. Income from multiple locales 2. Different tax and reporting books 3. Headquarters in tax havens 4. Volatile effective tax rate Capital 1. Volatile capital expenditures Expenditures 2. Frequent and large acquisitions 3. Stock payment for acquisitions and investments Working 1. Unspecified current assets and capital current liabilities 2. Volatile working capital items Expected 1. Off-balance sheet assets and Growth rate liabilities (operating leases and R&D) 2. Substantial stock buybacks 3. Changing return on capital over time 4. Unsustainably high return Cost of 1. Multiple businesses capital 2. Operations in emerging markets 3. Is the debt market traded? 4. Does the company have a rating? 5. Does the company have off- balance sheet debt? Your inputs Follow-up Question Answer Complexity score Number of businesses (with more than 10% of revenues) =2 4 Percent of operating income = 20% 1 Percent of operating income = 15% 0.75 Percent of operating income = 5% 0.25 Percent of revenues from non-domestic locales = 100% 3 Yes or No Yes 3 Yes or No Yes 3 Yes or No Yes 2 Yes or No Yes 2 Yes or No Yes 4 Yes or No Yes 4 Yes or No Yes 3 Yes or No Yes 2 Yes or No Yes 3 Yes or No Yes 3 Is your return on capital volatile? Yes 5 Is your firm's ROC much higher than industry average? Yes 5 Number of businesses (more than 10% of revenues) = 2 2 Percent of revenues= 30% 1.5 Yes or No Yes 0 Yes or No Yes 0
Adjudication Order against Shri. Bhanwarlal H Ranka, Shri. Pradeep B Ranka, Ms. Kusum B Ranka, Ms. Sangeetha P Ranka, Ms. Anjana B Ranka, Shri. Arun B Ranka , Ms. Rachana A Ranka and Shri. Kantilal G Bafna in the matter of Residency Projects and Infratech Ltd.