March 31, 2018 March 31, 2017 Performance Ratios Gross margin 100.00% 66.64% Gross income / Operating revenue Operating margin 69.00% 44.15% Operating income / Operating revenue Net margin 44.50% 18.82% Net income / Operating revenue Equity performance 1.12% 0.59% Net income / Average equity Total asset performance 0.78% 0.42% Net income / Average total assets This is a relationship between earnings made in various instances of the income statement and the net income, and the relationship between the net income and the equity & total assets, showing the ability of these to generate earnings. March 31, 2018 December 31, 2017 Solvency Ratio Solvency 3.28 3.25 Total assets / total liabilities This ratio shows Valorem ability to meet its total liabilities. At the close of March 31, S.A.’s 2018, for every peso owed, Valorem S.A. has 3.28 back-up pesos. At the close of December 31, 2017, the company had 3.25 back-up pesos for every owed peso.
Performance Ratios March 31, 2018 March 31, 2017 Gross margin Gross income / Operating revenue 100.00% 66.64% Operating margin Operating income / Operating revenue 69.00% 44.15% Net margin Net income / Operating revenue 44.50% 18.82% Equity performance Net income / Average equity 1.12% 0.59% Total asset performance Net income / Average total assets 0.78% 0.42% This is a relationship between earnings made in various instances of the income statement and the net income, and the relationship between the net income and the equity & total assets, showing the ability of these to generate earnings. Solvency Ratio March 31, 2018 December 31, 2017 Solvency Total assets / total liabilities 3.28 3.25 This ratio shows Valorem S.A.’s ability to meet its total liabilities. At the close of March 31, 2018, for every peso owed, Valorem S.A. has 3.28 back-up pesos. At the close of December 31, 2017, the company had 3.25 back-up pesos for every owed peso.
a6582-er-02-07-2018-eng.docx