Zara Financial Analysis

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Zara Financial Analysis

By | May 2011
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Economic Book Value (EBV) Capital Calculation – Operating Approach | Fluid Milk | Cultured | Ice Cream | Industrial | International| Asset | | | | | |
Operating Cash | 1045| 174| 364| 1225| 136|
Accounts Receivable| 12568| 2095| 4380| 14737| 1637|
Inventory| 30988| 10587| 52338| 74198| 5003|
Prepaid Expenses| 4932| 1822| 2718| 6782| 2642|
Income and other taxes receivable| 1267| 0 | 1236| 2244| 647| Total Current Asset| 50800| 14678| 61036| 99186| 10065| Less: Accounts Payable| (46977)| (7831)| (16372)| (55084)| (6118)| Net Working Capital | 3823| 6847| 44664| 44102| 3947| Investment and other| 43896| 7316| 15297| 51468| 5719| Accumulated Amortized Goodwill| 5480| 913| 1910| 6426| 714| Net Property, Plant, and Equipment| 88656| 14776| 30895| 103950| 11551| Accumulated R&D, Net| 8157| 247| 2276| 6322| 203| EBV Capital | 150012| 30099| 95042| 212268| 22134|

Net Operating Profit After Tax (NOPAT) Calculation – Operating Approach

| Fluid Milk | Cultured | Ice Cream | Industrial | International| Earnings before unusual items, Interest and Tax | (2808)| (47)| 7739| 22570| 5053| Research and Development Add Back | 4384| 133| 1223| 3398| 109| Less: Amortization of Acc. R&D Expenses | (3806)| (115)| (1062)| (2950)| (95)| Goodwill Amortization Add Back| 1035| 172| 360| 1212| 135| Adjusted Net Operating Profit before the Undernoted| (1195)| 144| 8260| 24230| 5202| Unusual Items | 0| 0| 0| 0| 0|

Adjusted Net Operating Profit before Tax| (1195)| 144| 8260| 24230| 5202| Cash Operating Taxes | 1123| 19| (3096)| (9028)| (2021)| Adjusted Net Operating Profit after Tax (NOPAT)| (72)| 163| 5164| 15202| 3181|

Economic Value Added (Fluid Milk)= NOPAT – (EBV Capital x WACC)
= (72) – (150012 x 0.1)
= -15073.2
Economic Value Added (Cultured)= NOPAT – (EBV Capital x...