The Status Quo Of American Apparel: Substantial Improvement In Asset Structure And Good Cash Flow.

Smith Barney

On the evening of 11, a notice was issued. The company received the notice of the association of interdealer dealers, and accepted the registration of the company's short-term financing certificates. The authorized amount was 1 billion 600 million yuan, which is valid for 2 years.

At the same time, the company recently intends to issue 800 million yuan of the first phase of short-term financing coupons.

In 2011, 2 short term financing bills of 500 million yuan were issued respectively. According to public information, the company's main rating was AA- in 2011, and the main rating has risen to AA.

Company officials said that the improvement of the company's credit rating was due to the continuous improvement of the company's asset structure and cash flow status.

Substantial improvement in asset structure

Since 2011, the debt level of companies has been decreasing, and the asset liability ratio has dropped from 61.21% at the end of 2010 to 52.90% in the middle of 2012.

The mobile ratio increased from 1.09 at the end of 2010 to 1.13 in the middle of 2012, and the quick ratio increased from 0.60 at the end of 2010 to 0.71 in the middle of 2012.

Steady

Strategy, constantly improving the quality of operation, so as to optimize the structure of American Apparel assets.

Cash flow is in good condition.

The company's interim report shows that in the first half of the year, the company's operating net cash flow was 1 billion 700 million yuan, while operating net cash flow was negative at the end of last year and the end of 2010, and the net cash flow generated by operating activities accounted for a steady increase of 0.37 in operating income.

Solvency continues to improve

The debt paying ability of the company has been further improved in the case of declining asset liability ratio, continuous liquidity ratio and quick ratio.

According to statistics, the business generated by the company's business activities

In the medium term, it has already covered 52% of interest bearing liabilities and 95% of net debt.

The above analysis shows that the company is entering a benign development channel.

The improvement of the main credit rating is not only a reflection of the development of the company, but also a further reduction of the financial cost for the company's financing. The issuance of this short-term financing certificate will further enrich the company's funds and provide a guarantee for the sustained and rapid development of the company.