The main financial indicators for the fiscal period are shown below. March 31, 2018 December 31, 2017 Liquidity Ratios Current ratio 0.87 0.93 Current assets / Current liabilities Acid test of inventories 0.45 0.58 Current assets (less) inventories / Current liabilities Acid test of accounts receivable Current assets (less) trade receivables and accounts 0.67 0.72 receivable from related parties / Current liabilities These ratios measure Valorem Business ability to meet its short-term obligations, Group’s keeping an appropriate margin of safety. March 31, 2018 December 31, 2017 Debt Ratios Total debt 62.85% 61.47% Total liabilities / Total assets Short-term debt 34.19% 33.15% Current liabilities / Total assets The above indicators measure how and the extent to which short-term and long-term creditors participate in Valorem Business financing. Group’s March 31, 2018 December 31, 2017 Leverage Total 169.16% 159.56% Total liabilities / Equity Short-term 92.04% 86.05% Current liabilities / Equity Financial 73.13% 69.85% Financial obligations / Equity This compares third-party financing vs. and establishes the existing shareholders’ resources, relationship between short-term and long-term financial commitments vs. Valorem Business equity. Group’s
The main financial indicators for the fiscal period are shown below. Liquidity Ratios March 31, 2018 December 31, 2017 Current ratio Current assets / Current liabilities 0.87 0.93 Acid test of inventories Current assets (less) inventories / Current liabilities 0.45 0.58 Acid test of accounts receivable Current assets (less) trade receivables and accounts receivable from related parties / Current liabilities 0.67 0.72 These ratios measure Valorem Business Group’s ability to meet its short-term obligations, keeping an appropriate margin of safety. Debt Ratios March 31, 2018 December 31, 2017 Total debt Total liabilities / Total assets 62.85% 61.47% Short-term debt Current liabilities / Total assets 34.19% 33.15% The above indicators measure how and the extent to which short-term and long-term creditors participate in Valorem Business Group’s financing. Leverage March 31, 2018 December 31, 2017 Total Total liabilities / Equity 169.16% 159.56% Short-term Current liabilities / Equity 92.04% 86.05% Financial Financial obligations / Equity 73.13% 69.85% This compares third-party financing vs. shareholders’ resources, and establishes the existing relationship between short-term and long-term financial commitments vs. Valorem Business Group’s equity.
a6582-er-02-07-2018-eng.docx