The company’s equity amounts to $1,227,287 million, showing a decrease equivalent to 5.31%, compared with that at the close of December 31, 2016. The variation is mainly generated by changes in Other Comprehensive Income. Financial Indicators The main financial indicators for the fiscal period are shown below. Liquidity Ratios December 31, December 31, 2017 2016 Current ratio 1.57 0.47 Current assets / Current liabilities Acid test of accounts receivable Current assets (less) trade receivables and accounts receivable 1.29 0.31 from related parties / Current liabilities These ratios measure Valorem S.A.’s ability to meet its short-term obligations, keeping an appropriate margin of safety. December 31, December 31, 2017 2016 Debt Ratios Total debt 30.81% 28.65% Total liabilities / Total assets Short-term debt 6.39% 8.47% Current liabilities / Total assets The above indicators measure how and the extent to which short-term and long-term creditors participate in Valorem S.A.’s financing. December 31, Leverage December 31, 2016 2017 Total 44.53% 40.15% Total liabilities / Equity 9.23% 11.88% Current liabilities / Equity Financial 35.77% 29.89% Financial obligations / Equity This compares financing vs. shareholders’ resources, and establishes the existing relationship between short-term and long-term financial commitments vs. Valorem S.A.’s
The company’s equity amounts to $1,227,287 million, showing a decrease equivalent to 5.31%, compared with that at the close of December 31, 2016. The variation is mainly generated by changes in Other Comprehensive Income. Financial Indicators The main financial indicators for the fiscal period are shown below. Liquidity Ratios December 31, 2017 December 31, 2016 Current ratio Current assets / Current liabilities 1.57 0.47 Acid test of accounts receivable Current assets (less) trade receivables and accounts receivable from related parties / Current liabilities 1.29 0.31 These ratios measure Valorem S.A.’s ability to meet its short-term obligations, keeping an appropriate margin of safety. Debt Ratios December 31, 2017 December 31, 2016 Total debt Total liabilities / Total assets 30.81% 28.65% Short-term debt Current liabilities / Total assets 6.39% 8.47% The above indicators measure how and the extent to which short-term and long-term creditors participate in Valorem S.A.’s financing. Leverage December 31, 2017 December 31, 2016 Total Total liabilities / Equity 44.53% 40.15% Current liabilities / Equity 9.23% 11.88% Financial Financial obligations / Equity 35.77% 29.89% This compares financing vs. shareholders’ resources, and establishes the existing relationship between short-term and long-term financial commitments vs. Valorem S.A.’s
bdc22-earnings-release-q4-eng.docx