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K-V Pharmaceutical: modeFinance Credit Report
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If you want to know more, ASKMORE TM
modeFinance’s credit report.
Almost every day millions of peoplearound the world are wondering the realcreditworthiness of the companies withwhich they are in business. Every daythese questions remain unanswered.modeFinance
TM
now aims to answer thesequestions in a simple, complete andimmediate way.
ASKMORETM
is the modeFinanceTM
product which gives the chance toevaluate the credit risk for every companyfrom all around the world.
ASKMORETM plans 3 types of reports:
s-peek Basic Plus
ASKMORETM
Basic:This report includes modeFinance TM
’ sMORE Credit Ratings and MORE CreditLimit to help you in the decision making.It covers all essential information includingfinancial statements of the last three yearsand descriptive information including tradedescription and sector analysis.This report type is ideally suited fordecisions on transactions with each levelof credit risk.
modeFinanceTM HeadquarterBuilding A - AREA Science ParkPadriciano 99 - 34149 Trieste - ItalyPh.: +39 040 375 5337Fax: +39 040 375 [email protected]
askMORETM is a registered mark of modeFinanceTM
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAAnot
available
non return extremlypathological
pathological highdanger
weak sufficient adequate good very
strongextremely
strong
Company name K - V PHARMACEUTICAL COMPANY
Identification number US430618919
Country United States of America
ZIP code and city 63146 - ST. LOUIS
Address 2280, SCHUETZ ROAD
+1 314 645 6600
www.kvpharma.com
Legal form Not available
Account Consolidated
Incorporation date 1971
NACE 2 Sector 2120 - Manufacture of pharmaceutical preparations
Listed
Status Active
MORE Credit limit Not assessable on the base of the available informations
31/03/2012 31/03/2011 31/03/2010
Turnover (th e) 17,370 19,216 6,751
Rating C CC C
Probability of default 57.00% 42.00% 57.00%
Confidence Level 100% 100% 100%
Solvency ratios
Leverage ratio -1.53 -2.49 -3.58
Total asset/Total liabilities 0.35 0.60 0.72
Liquidity ratios
Current Ratio 0.61 1.32 0.53
Quick Ratio 0.60 1.32 0.52
Profitability and economic equili-
brium ratios
Return on investement ROI (%) -19.26 -41.15 -83.52
Return on equity ROE (%) -21.28 -71.92 -203.73
Asset turnover 0.09 0.05 0.03
Interest paid weight -0.80 -0.07 -0.03
Gross Profit/Operating revenue 1.90 1.41 2.89
Interest Coverage ratios
EBIT interest coverage ratio -3.60 -5.99 -36.29
Analysis and trend of financial
strength
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Sector Analysis
Company Healthy Balanced Vulnerable Risky
Solvency ratios
Leverage ratio -1.53 0.43 1.28 2.26 -1.98
Total asset/Total liabilities 0.35 3.31 1.78 1.34 0.76
Liquidity ratios
Current Ratio 0.61 2.83 1.78 1.58 0.78
Quick Ratio 0.60 2.16 1.24 1.20 0.76
Profitability and economic equilibrium ratios
Return on investement ROI (%) -19.26 12.09 5.78 -3.33 -25.88
Return on equity ROE (%) -21.28 12.46 7.17 -19.68 -102.80
Asset turnover 0.09 0.78 0.76 0.58 0.71
Interest paid weight -0.80 0.01 0.21 -0.02 -0.12
Gross Profit/Operating revenue 1.90 0.56 0.41 0.33 0.38
Interest Coverage ratios
EBIT interest coverage ratio -3.60 66.72 3.55 -3.55 -4.37
Cash Conversion Cycle (days)
Days Sales Of Inventory (DIO) 27 54 61 66 60
Days Sales Outstanding (DSO) 88 85 76 60 44
Days Payable Outstanding (DPO) 143 24 34 54 40
Cash Conversion Cycle (DIO + DSO - DPO) -28 109 99 70 56
Numer of analyzed companies - 277 312 96 28
(Average) Rating C A BBB B CC
The sector has been chosen according to:
international companies in the sector NACE 2 2120with financial data of year 2012.
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Sector Analysis - Graphs
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Balance Sheet
BALANCE SHEET (th e) 31/03/2012 31/03/2011 31/03/2010
Accounting practice Local GAAP Local GAAP Local GAAP
Exchange rate USD - EUR 0.74873 0.70388 0.7419
Total assets 189,727 397,480 266,044
Fixed assets 111,635 152,601 198,012
Intangible fixed assets 97,784 106,074 27,821
Tangible fixed assets 1,722 4,364 58,165
Other fixed assets 12,129 42,162 112,026
Current assets 78,092 244,879 68,032
Stocks 1,273 704 890
Debtors 4,193 23,510 742
Other current assets 72,627 220,666 66,400
Cash & cash equivalent 37,960 137,116 45,033
Shareholders funds -359,913 -265,925 -103,272
Capital 449 422 371
Other shareholders funds -360,362 -266,348 -103,643
Total liabilities 549,641 663,405 369,315
Non current liabilities 420,860 478,285 241,116
Long term debt 314,241 294,432 173,010
Other non-current liabilities 106,619 183,853 68,106
Current liabilities 128,781 185,120 128,199
Loans 22,911 60,111 47,407
Creditors 6,813 18,090 28,934
Other current liabilities 99,057 106,919 51,858
Total shareh. funds & liab. 189,727 397,480 266,044
NET DEBT (th e) 31/03/2012 31/03/2011 31/03/2010
Short term debts 22,911 60,111 47,407
Long term debt 314,241 294,432 173,010
Cash & cash equivalent 37,960 137,116 45,033
Net debt 299,191 217,428 175,384
31/03/2012 31/03/2011 31/03/2010
Working capital -1,348 6,124 -27,302
Net Current Assets -50,689 59,759 -60,168
31/03/2012 31/03/2011 31/03/2010
Days Sales Of Inventory (DIO) 27 13 48
Days Sales Outstanding (DSO) 88 447 40
Days Payable Outstanding (DPO) 143 344 1,564
Cash Conversion Cycle (DIO + DSO - DPO) -28 116 -1,476
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Income Statement
INCOME STATEMENT (th e) 31/03/2012 31/03/2011 31/03/2010
Accounting practice Local GAAP Local GAAP Local GAAP
Exchange rate USD - EUR 0.74873 0.70388 0.7419
Sales 17,370 19,216 6,751
Revenues growth (%) -10 185 -
Other revenues +/- variation in inventories and contract in progress + Fixed assets
own construction capitalized0 0 0
Operating revenue / turnover 17,370 19,216 6,751
Total operating costs 123,016 85,451 222,123
Costs growth (%) 44 -62 -
Service costs - - -
Material costs - - -
Costs of employees - - -
EBITDA -64,615 -57,507 -135,396
Depreciation 41,030 8,728 79,976
EBIT -105,645 -66,235 -215,372
Financial P/L 39,757 -108,397 -12,761
Financial revenue - - -
Financial expenses -39,757 108,397 12,761
Interest paid 29,350 11,051 5,935
P/L before tax -65,888 -174,632 -228,133
Extr. and other P/L -3,220 -11,121 0
Extr. and other revenue - - -
Extr. and other expenses - - -
P/L before tax + Extr. and other P/L -69,108 -185,754 -228,133
Taxation 7,487 5,490 -17,731
P/L for period -76,595 -191,244 -210,401
31/03/2012 31/03/2011 31/03/2010
Costs of Good Sold -15,648 -7,883 -12,761
Gross Profit 33,019 27,099 19,512
Other Operating Expenses 138,664 93,334 234,884
31/03/2012 31/03/2011 31/03/2010
Cash flow -35,565 -182,516 -130,425
Added value - - -
31/03/2012 31/03/2011 31/03/2010
Number of employees 214 200 237
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Evolutions and trends
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Qualitative information
Full overview The company is a fully integrated specialty pharmaceutical firm that develops, acquires, manufactures and markets
technologically distinguished branded and generic/non - branded prescription pharmaceutical products. It was
incorporated in the year 1971 and has its registered office address in St. Louis, Missouri. The company is a
leading specialty pharmaceutical company that develops, manufactures and markets innovative branded, quality
generic/non - branded and unique specialty ingredient products, utilizing proprietary drug delivery technologies.
In addition to its comprehensive research & development and manufacturing processes, the company has broad
marketing and sales capabilities through its three wholly owned subsidiaries, Ther - Rx Corporation, marketing
branded products; ETHEX Corporation; marketing generic/non - branded products; and Particle Dynamics, Inc.,
participating in the value - added specialty ingredient marketplace. The company has a range of dosage from
capabilities, including tablets, capsules, creams, liquids and ointments.
History Not available.
Primary business line A fully integrated specialty pharmaceutical firm that develops, acquires, manufactures and markets technologically
distinguished branded and generic/non - branded prescription pharmaceutical products.
Secondary business line Not available.
Main activity Manufacturing; Wholesale.
Secondary activity Not available.
Main products and services Tablets, capsules, creams, liquids and ointments.
Size estimate A leading specialty pharmaceutical company that develops, manufactures and markets innovative branded, quality
generic/non - branded and unique specialty ingredient products, utilizing proprietary drug delivery technologies.
Strategy, organization and policy Not available.
Strategic alliances Not available.
Membership of a network Not available.
Main brand names Not available.
Main domestic country United States of America.
Main foreign countries or regions Not available.
Main production sites United States of America.
Main distribution sites Not available.
Main sales representation sites Not available.
Main customers Not available.
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Auditor/Advisor/Bank
name type address
BDO USA, LLP Auditor -
UMB Bank Transfer Agent -
Board
name date of birth nationality function
Mr. Robert E Baldini - - Independent Director
Mr. Gregory Smith Bentley 05/08/1949 - Director
Mr. Mark A Dow - - Independent Director
Mr. David S Hermelin - - Director
Mr. Joseph D Lehrer - - Lead Independent Director
Mr. David Sidransky - - Independent Director
Miss Ana I Stancic - - Independent Director
Sharehoders (the first twenty shareholders ordered by Direct %))
ORBIMED ADVISORS LLC via its funds Rating:
Country ISO code US Operating Revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees -
Total % 9.03 Information date 2012/03
Address : Not available
BLACKROCK, INC. via its funds Rating: BB
Country ISO code US Operating Revenue (MIL $) 9081
NACE Rev. 2, Core code - Total Assets (MIL $) 179896
Direct % - Number of Employees 10100
Total % 7.75 Information date 2012/03
Address : Not available
KINGDON CAPITAL MANAGEMENT, L.L.C. via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 13.7
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 80
Total % 5.46 Information date 2012/03
Address : Not available
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
PARKSIDE FINANCIAL BANK AND TRUST via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 10.49
NACE Rev. 2, Core code - Total Assets (MIL $) 219.55
Direct % - Number of Employees 32
Total % 4.08 Information date 2012/03
Address : Not available
VANGUARD GROUP, INC. THE via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 2017.7
NACE Rev. 2, Core code - Total Assets (MIL $) 1830.07
Direct % - Number of Employees 9500
Total % 2.12 Information date 2012/03
Address : Not available
TSP CAPITAL MANAGEMENT GROUP via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 0.29
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 4
Total % 1.85 Information date 2012/03
Address : Not available
DIMENSIONAL FUND ADVISORS LP via its funds Rating: A
Country ISO code US Operating Revenue (MIL $) 36.72
NACE Rev. 2, Core code - Total Assets (MIL $) 2186.66
Direct % - Number of Employees 260
Total % 1.84 Information date 2012/03
Address : Not available
BROADFIN CAPITAL LLC via its funds Rating:
Country ISO code US Operating Revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 0
Total % 1.65 Information date 2012/03
Address : Not available
D. E. SHAW & CO., L.P. via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 119.33
NACE Rev. 2, Core code - Total Assets (MIL $) 24014.19
Direct % - Number of Employees 159
Total % 1.29 Information date 2012/03
Address : Not available
STATE STREET CORPORATION via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 9594
NACE Rev. 2, Core code - Total Assets (MIL $) 216827
Direct % - Number of Employees 29740
Total % 1.26 Information date 2012/03
Address : Not available
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
NORTHERN TRUST CORPORATION via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 3769.64
NACE Rev. 2, Core code - Total Assets (MIL $) 100223.74
Direct % - Number of Employees 14018
Total % 1.02 Information date 2012/03
Address : Not available
AQR CAPITAL MANAGEMENT LLC via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 9.9
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 75
Total % 1.00 Information date 2012/03
Address : Not available
BALYASNY ASSET MANAGEMENT, LLC via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 24
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 150
Total % 0.95 Information date 2012/03
Address : Not available
FMR LLC via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 7757.4
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 41050
Total % 0.71 Information date 2012/03
Address : Not available
KENNEDY CAPITAL MANAGEMENT, INC. via its funds Rating: BB
Country ISO code US Operating Revenue (MIL $) 0
NACE Rev. 2, Core code - Total Assets (MIL $) 16.88
Direct % - Number of Employees 0
Total % 0.61 Information date 2012/03
Address : Not available
UBS EUCALYPTUS MANAGEMENT LLC via its funds Rating:
Country ISO code US Operating Revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 0
Total % 0.59 Information date 2012/03
Address : Not available
BANK OF NEW YORK MELLON CORPORATION via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 14730
NACE Rev. 2, Core code - Total Assets (MIL $) 325266
Direct % - Number of Employees 48700
Total % 0.54 Information date 2012/03
Address : Not available
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
GEODE CAPITAL MANAGEMENT, LLC via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 0.18
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 2
Total % 0.46 Information date 2012/03
Address : Not available
AMERICAN CAPITAL MANAGEMENT INC via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 0.37
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 4
Total % 0.45 Information date 2012/03
Address : Not available
PARTNER FUND MANAGEMENT, L.P. via its funds Rating:
Country ISO code US Operating Revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 0
Total % 0.45 Information date 2012/03
Address : Not available
Subsidiaries (the first twenty subsidiaries ordered by Direct %)
DRUGTECH CORP Rating:
Country ISO code US Operating Revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % MO Number of Employees -
Total % - Information date 2012/04
ETHEX CORPORATION Rating:
Country ISO code US Operating Revenue (MIL $) 7.7
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % MO Number of Employees 39
Total % - Information date 2012/03
THER - RX CORPORATION Rating:
Country ISO code US Operating Revenue (MIL $) 7.9
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % MO Number of Employees 40
Total % - Information date 2012/04
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
ASKMORE rating guide
General vision A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of
an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk
factors.
The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial
companies by using data included in financial statements.
The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy
model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the
model are obtained by applying newly developed numerical methodologies, drawing together financial theory,
data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective
algorithm that produces a classification of each company, by taking into account any attributes (such as sector and
country) characterizing a firm.
The model gives the opportunity to assign a rating to a company even without considering a complete data analysis
and allows to process quality information. It induces a better understanding of a company’s strength and weakness
thanks to sophisticated data mining tools and taking into account the analyst knowledge.
The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the
rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium
between the different aspects, better will be the final rating.
This is done studying, evaluating and aggregating the most important sections of the financial and economic
behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Rating scale
Rating class Rating macro class Assessment
AAA
Healthy
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
economic and financial flow and fund equilibrium.
AAThe company has very strong creditworthiness. It also has a good capital structure and economic and financial
equilibrium. Difference from AAA is slight.
AThe company has a high solvency. The company is however more susceptible to the adverse effects of changes in
circumstances and economic conditions than companies in higher rated categories.
BBB
Balanced
Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial
commitments could be affected by serious unfavourable events.
BBA company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing
uncertainties or exposure to adverse business, financial, or economic conditions.
B
Vulnerable
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial
fundamentals. Adverse market events and an inadequate management could affect with high probability the
company’s solvency.
CC
Risky
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the
company’s strong disequilibrium could increase.
CThe company shows considerable pathological situations. The company’s capacity to meet its financial
commitments is very low.
D The company has not any longer the capacity to meet its financial commitments.
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Fundamental Credit Rating Ratios
Analysis area Ratio Assessment
Solvency ratios
Leverage ratioThis measures the level of total liabilities of the company in comparison
with equity.
Assets to debtThis indicates company’s solvency. The company shows a level of deficit
when the value of this ratio is under one unit.
Financial ratios Fixed Assets coverage ratioThis is calculated only for holdings. It measures the capital structure i.e.
whether a company covers the fixed assets with long term capital.
Liquidity ratios
Current ratioThis measures whether a company has sufficient short-term assets to cover
its short-term liabilities.
Quick ratioThis compares current liabilities only to those assets that can be readily
turned into cash.
Profitability and economic ratios
Return on Investement(ROI)This measures the profitability of company investments without regard to
the way the investment is financed.
Return on Equity(ROE) This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level
assumed from the ratio depends on the sector in which the company
operates.
Profit margin This indicates the profitability of sales.
Interest coverage ratio Interest Paid coverage
This indicate the ability of the company to cover interest expenses through
the economic margins (Gross profit and EBIT) and through the cash flow
from operating activities.
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
MORE Credit Limit, Probability of default and Confidence Level
MORE Credit Limit MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial
relationship with the analyzed company with an outlook of one year.
modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size;
• Years in Business;
• Average number of suppliers;
• Liquidity of the company and the comparison with its sector;
• The funds dedicated to be paid to suppliers;
• The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual
public data. This value should be reviewed by paying attention to the Confidence Level value and by using other
information such as other business information, news... etc; and private information such as the relationship with
client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence
Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of
confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go
into default.
As the probability of default is strongly affected by the economic climate that the company is operating in,
companies in the same MORE class will not necessarily have the same probability of default.
The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
∑Available Information∑
Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in
availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the
MORE rating is able to take into account for each company.
For companies with fully populated records a confidence level of 100% would be applied: companies where no
financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
K - V PHARMACEUTICALCOMPANYMonday, 13 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Notes and disclaimer
NOTES modeFinance has based the present analysis on the company available financial statements, coming from one or
more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s
database etc.
DISCLAIMER All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any
form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of
the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot
be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will
be based on information gathered in good faith from both primary and secondary sources, whose accuracy we
are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken
based on any information that may subsequently prove to be incorrect.
Contacts
Company modeFinance
Products MORE rating
Where AREA Science Park
34149 Trieste, via Padriciano 99 - ITALY
Info [email protected]
web www.modefinance.com
Phone +39 040 3755337