Liabilities Total consolidated liabilities were $2,243,914 million. Within this amount, the short-term and long-term financial obligations are the most representative, amounting to $982,297 million and accounting for 43.78% of total liabilities. Equity As of September 30, 2017, Valorem Business Group’s equity is $1,406,341 million, with a decrease of 2.48%, compared with the amount recorded as of December 31, 2016. Financial Indicators The main financial indicators for the fiscal period are below. December 31, Liquidity Ratios December 31, 2016 2017 Current ratio 0.93 0.82 Current assets / Current liabilities Acid test of inventories 0.58 0.54 Current assets (less) inventories / Current liabilities Acid test of accounts receivable Current assets (less) trade receivables and accounts receivable 0.72 0.51 from related parties / Current liabilities These ratios measure Valorem Business Group’s ability to meet its short-term obligations, keeping an appropriate margin of safety. December 31, December 31, Debt Ratios 2017 2016 Total debt 61.47% 57.80% Total liabilities / Total assets Short-term debt 33.15% 30.35% Current liabilities / Total assets The above indicators measure how and the extent to which short-term and long-term creditors participate in Valorem Business Group’s financing. December 31, December 31, Leverage 2017 2016
Liabilities Total consolidated liabilities were $2,243,914 million. Within this amount, the short-term and long-term financial obligations are the most representative, amounting to $982,297 million and accounting for 43.78% of total liabilities. Equity As of September 30, 2017, Valorem Business Group’s equity is $1,406,341 million, with a decrease of 2.48%, compared with the amount recorded as of December 31, 2016. Financial Indicators The main financial indicators for the fiscal period are below. Liquidity Ratios December 31, 2017 December 31, 2016 Current ratio Current assets / Current liabilities 0.93 0.82 Acid test of inventories Current assets (less) inventories / Current liabilities 0.58 0.54 Acid test of accounts receivable Current assets (less) trade receivables and accounts receivable from related parties / Current liabilities 0.72 0.51 These ratios measure Valorem Business Group’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 61.47% 57.80% Short-term debt Current liabilities / Total assets 33.15% 30.35% The above indicators measure how and the extent to which short-term and long-term creditors participate in Valorem Business Group’s financing. Leverage December 31, 2017 December 31, 2016
bdc22-earnings-release-q4-eng.docx