CCJCameco

Nine pass-or-fail tests of profitability, balance-sheet strength and efficiency, against the year before.

• Net income positivepassed
• Return on assets positivepassed
• Operating cash flow positivepassed
• Cash flow above net incomepassed
• Long-term debt fallingfailed
• Current ratio risingpassed
• No new shares issuedpassed
• Gross margin risingpassed
• Asset turnover risingpassed

A weighted sum of five balance-sheet ratios that has historically separated companies heading for bankruptcy from the rest.

Working capital / total assets

0.143

Retained earnings / total assets

0.350

EBIT / total assets

0.060

Market value of equity / total liabilities

18.76

Revenue / total assets

0.338

Eight ratios that tend to move when reported earnings are being flattered. Above −1.78 the model flags the company.

Days' sales in receivables

1.06

Gross margin

0.93

Asset quality

0.89

Sales growth

1.16

Depreciation

0.97

SG&A expense

1.11

Total accruals / assets

-0.079

Leverage

0.91

A model of the probability of default within two years, from size, leverage, liquidity and profitability.

O-Score

-2.97

Total liabilities / total assets

0.330

Working capital / total assets

0.152

Current liabilities / current assets

0.405

Net income / total assets

0.057

How much of reported profit arrived as cash. The Sloan ratio is the accrued, non-cash share of earnings against assets.

Cash flow to net income

2.4×

Cash-flow return on invested capital

13.6%

Dividend payout ratio

17.7%

Free cash flow / dividends

10.3×

Dividend safety

safe