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Non-Tech : Tyco International Limited (TYC) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Rudd who wrote (3425)	6/20/2002 2:42:03 PM
From: James Calladine	Read Replies (1) \| Respond to of 3770

I agree. But it does show that both companies are a lot less liquid than is commonly believed. And that the more leveraged a company is with debt, the more vulnerable they are to debt downgrades, which under some circumstances put companies in a default position with lenders. Namaste! Jim

To: Bob Rudd who wrote (3425)	6/20/2002 5:50:52 PM
From: deeno	Read Replies (2) \| Respond to of 3770

Heres a Bankruptcy model for you. Altman's Bankruptcy Predictor (or Z-score) calculation. Z=(1.2X1)+(1.4X2)+(3.3X3)+(0.6X4)+(1.0*X5) X1 = Working capital/ Total Assets = WC/TA X2= Retained Earnings/ Total Assets = RE/TA X3= EBIT/ Total Assets = EBIT/TA X4= Market Value of Equity/ Book Vlaue of Liabilities = MVE/ BVTL X5= Total Sales/ Total Assets = TS/TA The Altman Z-score is used to determine a companys short-term outlook or future viability, where, >3.0 ... Strong 1.8-3.0 ..... In Danger <1.8 ..... Near death