CREDITWORTHINESS RATING REPORT

Transcription

1 CREDITWORTHINESS RATING REPORT Publisher: Bisnode BH d.o.o. Part of the BISNODE group, Stockholm, Sweden Regionalna ekonomska zajednica "REZ" d.o.o. Zenica Published 7/26/2018 Web: bisnode.ba/aaa, tel:

2 Table of contents 01. What is creditworthiness rating? 02. Registration data 03. Balance sheet 04. Income statement 05. Indicators 06. Graphic analysis 07. Methodology 08. Statistics 09. About Bisnode 10. Certificate

3 What is creditworthiness rating? Creditworthiness rating is above-average rating value of entities - economic operators. It is based on the entities' financial statements for the last business year and forecasts the safety of operations in the next twelve months. Companies with excellent solvency operate above average and it is less likely that their transaction account will be frozen next year. To get excellent solvency rating a company must meet the following quality standards: have at least two employees company should be active for at least three years net profit margin of at least 1,5% operating revenues of at least BAM probability of a negative event less than 3,72% (insolvency, cancelation or blocked bank account) There is a 61% probability that entities with AA creditworthiness rating will maintain the creditworthiness rating also in the next year. Certification has become an established practice in the international environment and a method for entities to further consolidate their reputation and trust in domestic and foreign business environment. The holders of a certificate thus gain additional trust of their business partners. The Bisnode Group has a long-term tradition in granting certificates of rating excellence in the following 12 European countries: Sweden, Norway, Finland, Denmark, Germany, Slovenia, Croatia, Serbia, Bosnia and Herzegovina, Poland, Czech Republic and Hungary. In the next years, certification will be carried out at the level of the entire group of 18 European countries in which Bisnode operates. 1

4 Registration data Company name: Address: Activity: Legal status: Regionalna ekonomska zajednica "REZ" d.o.o. Zenica Štrosmajerova 11/III, ZENICA M BUSINESS AND OTHER MANAGEMENT CONSULTANCY ACTIVITIES DRUŠTVO SA OGRANIČENOM ODGOVORNOŠĆU Tax no.: Date of entry: 5/26/2004 Size: Region: Small Zeničko-dobojski Kanton 2

5 Balance sheet Data in 1000 BAM ASSETS Fixed assets 343, , ,264 Current assets 104,907 72, ,640 Supplies Claims 2,977 37,260 0 Cash and cash equivalents 101,324 32, ,447 LIABILITIES Capital 51,474 53,876 57,127 Long-term provisions 326, , ,571 Long-term liabilities Short-term liabilities 6,294 3,679 6,643 Liabilities 448, , ,904 The average number of employees Source: FIA and APIF 3

6 Income Statement Data in 1000 BAM Revenues from sales 87, , ,940 Cost of goods, materials and services 14,702 15,079 13,536 Wages, salaries and other employee expenses 273, , ,982 Write-offs 9,678 8,400 8,044 Operating profit (EBIT) 2,094 2,888 18,207 Operating profit (EBITDA) 881 2,935 5,543 Financial revenues Financial expenses Total revenues 609, , ,682 Total expenditures 608, , ,139 Net profit 678 2,402 4,835 Source: FIA and APIF 4

7 Indicators Participation rate of capital Current ratio Debt service Credit exposure from operations Current assets turnover Operating margin 2, , , Net return on assets Net return on equity Net profit margin Share of fixed assets in assets Share of current assets in assets Source: FIA and APIF 5

8 Graphic analysis Participation rate of liabilities The participation rate of liabilities tells us the amount of assets financed by foreign capital. The higher the ratio, the better the company uses foreign sources for its financing (current and non-current liabilities). As a rule, foreign financing is cheaper than financing from own resources. Calculation ratios 6

9 Liquidity ratio The liquidity ratio tells us the the coverage of current liabilities by current assets. The higher the value of the ratio, the easier it is for the company to settle its current liabilities. Liquidity is the company s ability to have at its disposal, within a short period of time, adequate liquid assets for timely payment of due liabilities. Calculation ratios 7

10 Assets turnover ratio The ratio measures the share of total revenues in assets and tells us the amount of total revenues generated by the company with the available assets. The higher the value of the ratio, the better the performance of the company and the shorter its turnover. The shorter the turnover, the better the liquidity of the company and the smaller the probability that it would experience liquidity problems. A shorter turnover means that assets require less time to be converted from non-liquid to liquid state. Calculation ratios 8

11 Methodology The methodology for assessing creditworthiness rating is based on a combination of qualitative standards and statistical model. The analysis includes subjects with at least two employees, total revenues of at least BAM and a positive equity. Statistical model estimates the probability of negative event (bank account blockage, insolvency or cancelation) of the entity in the next year and a basis for assessing the creditworthiness rating. Final rating takes into account additional qualitative standards that are set for each rating level of creditworthiness. The statistics of entity blockades in relation to a specific financial ratio represent a basis for preparing a statistical model. 50 Assets turnover ratio Share of population (in %) Blocked Share of population 0 to 0.35 to 0.81 to 1.33 to 2.23 over 2.23 Assets turnover ratio 9

12 35 Liquidity ratio 30 Share of population (in %) Blocked Share of population 0 N/A to 0.8 to 1.13 to 1.61 to 3 over 3 Liquidity ratio 40 Profit margin Share of population (in %) Blocked Share of population 0 to 0 to 0.01 to 0.03 to 0.08 over 0.08 Profit margi 10

13 Statistics Comparison of the distribution of subjects with a creditworthiness rating and the population of entities that meet the criteria of at least two employees, at least BAM revenue and positive equity. Comparison of size distribution of income shows that the AA credit rating is dominated by companies with higher total revenues: Share of population (in %) Distribution by age to 6 to 10 to 13 to 14 over 14 Age in months Population AA Distribution of the number of employees featured in the AA creditworthiness rating is dominated by operators with a large number of employees Share of population (in %) Distribution by number of employees to 2 to 3 to 9 to 42 over 42 Number of employees Population AA 11

14 Comparison of return on equity shows that great companies have a credit rating of AA with a positive and moderate average return on equity: Share of population (in %) Distribution by return on equity(roe) to to to to over Funds profitability Population AA 12

15 About Bisnode Bisnode is a leading European company that provides business information and conducts data analysis. It operates in 19 countries and is also a strategic partner of the largest global provider of business information, Dun & Bradstreet. Bisnode Southern Market includes the subsidiaries in the countries of the former Yugoslavia: Slovenia, Croatia, Serbia, Bosnia and Herzegovina, and Macedonia. Bisnode helps companies improve their operations and management of relationships with clients throughout the entire life cycle by utilising smart data. This is achieved by combining our data, the data of our clients, and the ubiquitous big data to create smart data. 13