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Cash flow;Default risk;Corporate bond;Case study;Mosel Vitelic Inc.
|Issue Date: ||2013-07-11T03:16:39Z
Cash is one of the fundamental factors for maintaining a firm's basic activities. Cash flows become complex while firms do not perform well and cash flows from their operating activities turn to weak. By analyzing a firm's cash flows, investors can realize the firm's debt repayment abilities and its default risk. This research finds that debt ratio and two cash flow financial ratios: (1) (cash from operating + interests expenditure) / interests expenditure (2) cash flow from operating / long-term debt within one year, can illustrate the relative default risk among Mosel Vitelic Inc., Winbond Electric Corp. and Taiwan Semiconductor Manufacturing Company. As far as the default risk is concerned, Mosel's is grater than Winbond's, and Winbond's is grater than TSMC's. Although it is a simple process to analyze firms via the cash flow model, however, it is an undisputable fact that the credit analyses between good and bad firms show significant differences in their many kinds of financial ratios.
|Appears in Collections:||[商業教育學系] 會議論文|
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